In June 2026, Elon Musk’s space and satellite company, SpaceX, completed the largest initial public offering (IPO) in history.
According to Yahoo Finance, SpaceX priced its IPO at $135 a share, raising $75 billion from the sale of 555.56 million shares.
This valued the company at around $1.77 trillion at the point of listing.
To put this into context, Saudi Aramco’s 2019 IPO, previously considered the largest in history, raised around $29.4 billion.
Perhaps unsurprisingly, SpaceX’s public debut created a significant wave of interest among investors. When a company with a famous founder and constant media coverage enters the stock market, it can be tempting to feel that you need to act quickly or risk missing out.
However, past performance doesn’t guarantee future performance, and you could lose more than you put in. Buying an investment because it is dominating the news can expose your portfolio to unnecessary risk.
Continue reading to learn what SpaceX’s historic listing could teach you about market trends and the importance of diversification.
SpaceX’s early performance shows how quickly sentiment can change
Following SpaceX’s initial listing at $135 a share, the BBC reports that the company quickly rose to $150 on the first day of trading.
The following week, shares rose even further, hitting an intraday high of $225. At that level, SpaceX had reportedly surpassed Amazon and Microsoft in total market value.
Yet, this early excitement seemingly didn’t last. Roughly a month after the IPO, SpaceX shares finished the day down more than 4% at just above $139.
This means the share price had fallen by around 38% from its $225 intraday high, bringing it close to the original $135 offer price.
This is a reminder that a compelling company story doesn’t remove the risk of short-term volatility.
SpaceX may well have exciting long-term prospects, but investors who bought after the initial surge would have seen the value of their shares fall sharply within weeks.
A fear of missing out can lead to rushed investment decisions
The fear of missing out, or “FOMO”, can significantly affect the way you think about your wealth.
If a share price is rising, or a company is being discussed constantly, it can be tempting to assume that you should be involved too.
This isn’t uncommon, with research from the Financial Conduct Authority finding that 66% of investors aged 18 to 40 make investment decisions in less than 24 hours, while 14% decide in less than an hour.
It also found that 51% of younger investors have put in more money than they originally intended due to FOMO.
Even if an IPO such as SpaceX may be based on an impressive business, this doesn’t automatically mean it’s the right investment for your portfolio.
A “good” company can still be overpriced or experience volatility, and the right choice for you will depend on your goals, investing time frame, and attitude to risk.
Diversification could help reduce reliance on one company or sector
Investing in a high-profile company isn’t necessarily a problem in itself, the issue can be how much of your portfolio depends on that one area.
If you invest too heavily in a single company, your returns may depend on factors that are difficult to predict, such as management decisions or investor sentiment.
This is why diversification is often wise. Rather than relying on one sector, geographical area, or asset class, a diversified portfolio spreads your money across a range of assets.
It’s important to remember that diversification doesn’t guarantee positive returns or eliminate risk entirely. The value of your investments can always fall as well as rise.
However, it can reduce the impact of one area of downturn on your overall portfolio.
A long-term plan could help you avoid emotion-led decisions
Decisions driven by excitement or urgency can often feel very different once headlines have moved on and investments fluctuate.
So, before investing in any company, it’s worth asking yourself:
- Does this fit with my long-term goals?
- Am I investing because of research or because I fear missing out?
- How much of my portfolio would depend on this one investment?
These questions could help you slow down and make a more considered decision.
This is essential because long-term investing is rarely about responding to every market headline. Instead, you may benefit from building a portfolio that reflects your goals and attitude to risk.
Get in touch
We could help you understand whether a new investment opportunity fits your wider plan, rather than making decisions based on short-term noise.
To find out more, please contact us by email at info@investmentsense.co.uk or call 0115 933 8433.
Please note
This article is for general information only and does not constitute advice. The information is aimed at individuals only.
All information is correct at the time of writing and is subject to change in the future.
