Days after analysts at more than a dozen banks rolled out price targets that were almost uniformly bullish, the shares tumbled below their $135 IPO price for the first time, then kept falling toward $125. The reversal is jarring for a company whose Nasdaq debut in June was the largest in U.S. history: shares that peaked near $211 within three days of trading have now shed nearly 60% of their value, leaving even early allocation winners facing a loss if they sell today.
It is rare for a company to go up immediately after IPO and stay up. With a solid company it goes up after IPO for a few days, collapses and then over the years goes back to its IPO level and hopefully exceeds it. SpaceX isn’t even a solid company.
Banks hype IPO’s to trick investors into paying more than a company is worth.