SpaceX Is Why You Don’t Invest In An IPO - Forbes

What the report says

Forbes contributor Erik Sherman used SpaceX’s first month as a public company as a cautionary example for investors considering high-profile initial public offerings. In the article, published July 20 and updated July 21, 2026, Sherman wrote that SpaceX opened at $150 on June 12, ended its first trading day at $160.95, climbed above $200 within days and closed at $211.39, before falling back sharply. By July 20, Forbes reported, the stock opened at $125.33.

The piece argues that this pattern reflects a broader IPO risk: early excitement can drive prices above levels that later buyers may find sustainable. Forbes explains that companies typically go public to raise capital for expansion, strategic investments and competitive needs, while IPOs can also create liquidity opportunities for venture capital backers and some early employees, subject to lock-up restrictions. Sherman notes that the most favorable initial pricing is often available to select early participants rather than ordinary public-market investors.

Forbes also compares the SpaceX example with Facebook’s 2012 IPO, when shares initially struggled before later recovering, and cites a Truist analyst who told CBS News that major IPOs have often been volatile in their first year. The article adds that investor reassessment can follow market hype, particularly around businesses tied to heavily promoted technologies.

The broader takeaway from Forbes is a personal finance warning rather than a company-specific forecast: investors drawn to a single IPO for a large payoff may face steep volatility and should weigh that risk against more diversified investment strategies.