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New IPOs like SpaceX often drop 50% in year one despite initial hype, cautioning investors to be patient.

Market News
11 Jun 2026
24/7 Wall Street
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Neutral
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SpaceX plans to debut on Nasdaq in 2026 under ticker SPCX, sparking huge retail investor excitement. However, historical data shows that the hottest IPOs typically suffer an average 55% drop within their first year before stabilizing or rebounding. Examples like Meta, Snap, Uber, and Pinterest illustrate varied recovery paths, with some taking years to regain initial prices or never fully recovering. Experts advise investors to be cautious, avoid funding IPO buys by selling strong holdings, and consider dollar-cost averaging after the initial volatile months, as the first-year price action is often brutal but long-term gains can be substantial.

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