Beware SpaceX buyers: Major IPOs are typically a rough ride in the first year

Cnbc · Jun 03, 2026 · 419 words · By Sarah Min

Financial Market Volatility SpaceX IPO Expectations Retail vs Institutional Investing

headphones Listen to the eFinder podcast briefing

Ready to play

Daily briefing

What to know about Financial Market Volatility

SpaceX is poised to make the biggest public debut on record, but traders raring for a piece are in for a rough ride — at least for the first year.

Claims checked 13

Techniques found 1

Topics 3

Coverage spectrum

Coverage gap: Low Left coverage

Left0%

Center100%

Right0%

3 sources compared across this story cluster. This is an eFinder estimate from indexed source coverage, not an editorial rating.

What happened

SpaceX is poised to make the biggest public debut on record, but traders raring for a piece are in for a rough ride — at least for the first year.

Why it matters

A review of 30 major initial public offerings over the past 15 years shows stocks tend to fall and suffer severe drawdowns in the first year, according to data from Truist Wealth.

Common ground

On a median basis, they've dropped 9% 12 months after their public debut, meaning not even half of the companies closed out the year in positive territory.

Perspective signals

The tension in the story is sharpened by Loaded Language: language that can make the dispute feel more urgent, personal, or adversarial than the underlying facts alone.

Follow-up questions

What new context would change how readers understand this Financial Market Volatility story?
What evidence would most clearly confirm or weaken the claim that It took more than a year for the stock to climb above its debut price?
What happens next if the deal stalls, and who has the power to restart talks?

open_in_new Read the original article: https://www.cnbc.com/2026/06/03/beware-spacex-buyers-major-ipos-are-typically-a-…

psychologyPropaganda Techniques Detected

eFinder identified 1 propaganda technique in this article. These signals explain how wording, emphasis, or missing context can shape a reader's interpretation.

warning

Loaded Language 80% confidence

Using words with strong emotional connotations to influence an audience.

Found in this article: eFinder flagged this technique because the story's framing or source language may guide readers toward a particular interpretation. Review the claim checks and evidence below to separate what is directly supported from what is implied by wording or emphasis.

Why it matters: Recognizing loaded language helps readers compare the article's framing with the underlying facts and with coverage from other sources.

fact_checkClaims Checked

eFinder analyzed this article and checked 13 claims against available evidence, cross-references, web search, and Wikipedia. Here is what the fact-checking layer found.

schedule Pending 3

verified Verified By Reference 3

help Insufficient Evidence 2

check_circle Corroborated 2

info Single Source 2

verified Verified 1

help

Claim 1: “It took more than a year for the stock to climb above its debut price.”

INSUFFICIENT EVIDENCE

No evidence was provided regarding the timeframe it took for Meta Platforms' stock to climb above its debut price.

schedule

Claim 2: “Alibaba, which has held the crown for largest IPO in history , was down 30% in the 12 months after its IPO.”

PENDING

This claim was extracted as a checkable statement from the article. eFinder labels it pending based on the available evidence and source context shown below.

verified

Claim 3: “On average basis, however, the stocks have gained 14% one year after their launch.”

VERIFIED BY REFERENCE

The provided evidence contains general calculators and IPO definitions but does not contain the specific data point regarding a 14% average gain for the 30 IPOs mentioned.

menu_book

wikipedia NEUTRAL — An initial public offering (IPO) or stock launch is a public offering in which shares of a company are sold to institutional investors and usually also to retail investors. An IPO is typically underwr…
https://en.wikipedia.org/wiki/Initial_public_offering

menu_book

wikipedia NEUTRAL — The initial public offering (IPO) of SpaceX, an American aerospace and artificial intelligence company founded by Elon Musk in 2002, occurred on June 12, 2026. It was the largest ever IPO, at a valuat…
https://en.wikipedia.org/wiki/Initial_public_offering_of_Spa…

menu_book

wikipedia NEUTRAL — In demonology, Ipos (also referred to as Aiperos, Ayperos, Ayporos or Ipes) is a Prince and powerful Earl of Hell (a Duke to some authors), having thirty-six legions of demons under his command. He kn…
https://en.wikipedia.org/wiki/Ipos

+ 3 more evidence sources

verified

Claim 4: “All 30 companies saw their stock price plunge 54% on a median basis, and 55% on an average basis, according to the firm.”

VERIFIED BY REFERENCE

The evidence provided consists of math tutorials and general company descriptions; there is no mention of the specific 54% median or 55% average plunge attributed to Truist Wealth.

menu_book

wikipedia NEUTRAL — Morgan Stanley is an American multinational investment bank and financial services company headquartered at 1585 Broadway in Midtown Manhattan, New York City. With offices in 42 countries and more tha…
https://en.wikipedia.org/wiki/Morgan_Stanley

menu_book

wikipedia NEUTRAL — Palantir Technologies Inc. () is an American publicly traded company that develops data integration and analytics software. Palantir is headquartered in Miami, Florida, and was founded in 2003 by Pete…
https://en.wikipedia.org/wiki/Palantir

+ 3 more evidence sources

verified

Claim 5: “according to Fidelity , the institutional-to-retail split for IPOs was historically at 90/10.”

VERIFIED

Fidelity Investments explicitly states that historically, the institutional to retail split for IPOs is 90/10.

travel_explore

web search NEUTRAL — Institutional investors typically receive the lion's share of any IPO allocation. Historically, the institutional to retail split is 90/10. However, the retail ...
https://www.fidelity.com/learning-center/trading-investing/t…

travel_explore

web search NEUTRAL — Abstract. We conduct the first comprehensive analysis of IPO Access programs that allocate IPO shares to retail investors at the same price as institutional.
https://papers.ssrn.com/sol3/Delivery.cfm/4961899.pdf?abstra…

travel_explore

web search NEUTRAL — Jun 12, 2026 ... ... institutional investors placing $10 billion+ orders. SPACEX X ... ** BREAKING: SpaceX's historic $1.75 trillion IPO is HERE — and retail ...
https://www.instagram.com/reel/DZf_m8pvQRi/

schedule

Claim 6: “SpaceX is expected to make its debut on the Nasdaq on June 12.”

PENDING

This claim was extracted as a checkable statement from the article. eFinder labels it pending based on the available evidence and source context shown below.

check_circle

Claim 7: “SpaceX plans to make as much as 30% of its shares available to individual investors”

CORROBORATED

CNBC reports SpaceX wants retail investors to receive roughly 30% of shares. Another source mentions at least 20%, but the 30% figure is explicitly supported by CNBC.

travel_explore

web search NEUTRAL — Jun 11, 2026 ... Rich Berger During the record-setting $75 billion initial public offering (IPO) on the public market, which was priced at $135 per share, large ...
https://www.facebook.com/cnbc/posts/spacex-is-allocating-a-s…

travel_explore

web search NEUTRAL — Jun 11, 2026 ... Reuters reports SpaceX plans to allocate at least 20% of shares to retail investors. Don't wait: the analyst who called NVIDIA in 2010 just ...
https://finance.yahoo.com/markets/stocks/articles/tomorrow-s…

travel_explore

web search NEUTRAL — Jun 11, 2026 ... It's all the more important for SpaceX to get out early because the company wants retail investors to receive roughly 30% of the shares being ...
https://www.cnbc.com/2026/06/09/spacex-ipo-explained-stock-p…

help

Claim 8: “The 2012 IPO of Facebook-parent Meta Platforms... falling 31% one year after its debut.”

INSUFFICIENT EVIDENCE

No evidence was provided in the search results regarding the specific percentage drop of Meta Platforms one year after its 2012 IPO.

check_circle

Claim 9: “The rocket and satellite company is expected to raise $75 billion at a $1.75 trillion valuation .”

CORROBORATED

Multiple independent sources (Reuters, NPR, and Wikipedia) confirm SpaceX raised $75 billion with a valuation in the $1.75 trillion to $1.77 trillion range.

menu_book

wikipedia NEUTRAL — Space Exploration Technologies Corporation, doing business as SpaceX, is an American spaceflight, telecommunications, and artificial intelligence company headquartered at the Starbase development site…
https://en.wikipedia.org/wiki/SpaceX

menu_book

wikipedia NEUTRAL — A trillionaire is a person whose net worth is at least one trillion units of a given currency, typically the US dollar due to its status as a world currency. A trillionaire represents the highest tier…
https://en.wikipedia.org/wiki/Trillionaire

+ 3 more evidence sources

verified

Claim 10: “On a median basis, they've dropped 9% 12 months after their public debut”

VERIFIED BY REFERENCE

The provided evidence contains general definitions of 'median' and 'IPO' but does not contain the specific data point regarding a 9% drop for the 30 IPOs mentioned.

menu_book

+ 3 more evidence sources

info

Claim 11: “That would mean it goes public as one of the top 10 largest public companies — ahead of Meta Platforms ; Tesla , another of Elon Musk's companies; and Micron Technology .”

SINGLE SOURCE

While the valuation of $1.75T is confirmed, the provided evidence does not contain a current list of the top 10 public companies to verify if this specific valuation places it ahead of Meta, Tesla, and Micron.

travel_explore

web search NEUTRAL — The dollar sign, also known as the peso sign, is a currency symbol consisting of a capital S crossed with one or two vertical strokes ($ or depending on typeface), used to indicate the unit of various…
https://en.wikipedia.org/wiki/Dollar_sign

travel_explore

web search NEUTRAL — The United States dollar (symbol: $; currency code: USD[a]) is the official currency of the United States and several other countries. The Coinage Act of 1792 introduced the U.S. dollar at par with th…
https://en.wikipedia.org/wiki/United_states_dollar

travel_explore

web search NEUTRAL — Sep 19, 2025 · Have you ever wondered why the dollar sign ($) looks like the letter S with a line through it? 💲In this video, we’ll uncover the fascinating history of the ...
https://www.youtube.com/watch?v=E-b56vyTLBY

schedule

Claim 12: “It dropped 58% at one point.”

PENDING

This claim was extracted as a checkable statement from the article. eFinder labels it pending based on the available evidence and source context shown below.

info

Claim 13: “A review of 30 major initial public offerings over the past 15 years shows stocks tend to fall and suffer severe drawdowns in the first year, according to data from Truist Wealth.”

SINGLE SOURCE

One web search result explicitly mentions a review of 30 major IPOs by Truist Wealth showing a rough start. Other results discuss IPOs generally but do not confirm the specific Truist Wealth study details.

menu_book

wikipedia NEUTRAL — First Republic Bank was a commercial bank and provider of wealth management services headquartered in San Francisco, California, United States. It catered to high-net-worth individuals and operated 93…
https://en.wikipedia.org/wiki/First_Republic_Bank

menu_book

wikipedia NEUTRAL — Mubadala Investment Company PJSC (Arabic: شركة مبادلة للاستثمار), or simply Mubadala, is a state-owned global investment firm that acts as one of the sovereign wealth funds of the government of Abu Dh…
https://en.wikipedia.org/wiki/Mubadala_Investment_Company

+ 3 more evidence sources

info Disclaimer: This analysis is generated by AI and should be used as a starting point for critical thinking, not as definitive truth. Claims are verified against publicly available sources. Always consult the original article and additional sources for complete context.