Roller coaster market: SpaceX fell for two consecutive days after rising high, and retail investors’ profits were almost wiped out

SpaceX, which has just completed its listing, has experienced continuous declines. Ordinary retail investors who had followed the trend and entered the market have basically shrunk their profits on their books. The issue price of this listing was set at US$135. The market was very popular in the early stage of the listing, and a large number of investors lined up to grab funds. The stock price soared all the way.The intraday high exceeded US$225, and the company's market value was once close to US$3 trillion.

Many retail investors participated in the purchase through various online brokerage platforms. In just a few days, the book profit was very considerable. The market is generally optimistic about the long-term development of this aerospace company.

The hot market did not last long, and the stock price began a continuous correction.The overall decline in just two trading days was close to 20%, and the price fell back to the level on the second day of listing. It fell another 3.6% on Thursday, closing at $185.

Based on the volume weighted average price,Retail investors who entered the market after the listing basically reached the break-even line, and almost all the book profits they earned before disappeared.

It is necessary to distinguish between two types of investors. The cost of retail investors who obtain the original shares through IPO channels is fixed at US$135. Even after a sharp decline, the stocks in their hands will still make a small profit, but the income will shrink significantly. Most of the ordinary investors who entered the market after the stock price shot up are already at a loss.

The rapid reversal of the market was mainly due to the rapid cooling of market enthusiasm. Investors began to calmly examine the company's valuation, and the bubbles caused by the early surge were gradually digested.

This round of sharp fluctuations has also reminded ordinary investors that speculation in popular new stocks is very risky, and it is easy to quickly give up profits or even lose money simply by following the trend.