IPO value drop after debut
"Most IPOs will have a 50 to 70% draw down in the first year. Meaning, let's just move this around a little bit here. Meaning, if we get a 50% draw down, look to buy SpaceX closer to $100. If we get a 70% draw down, which again, this is the standard thing that happens to IPOs. If you get a 70% draw down, $66."
ℹ️ In shortLark Davis explains that most new stock market companies (IPOs) experience a significant drop in share value in their first year, which can be a buying opportunity.
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Full disclaimer… st a $3 trillion valuation, which is ridiculous beyond belief. But this is how these things play out. And we were saying this a few days before it even came out. expect that potential for an early pump, but then reality will hit the fan. And that reality so far has been hitting. It's now down 31% from the highs of just four trading days ago. Okay. Most IPOs will have a 50 to 70% draw down in the first year. Meaning, let's just move this around a little bit here. Meaning, if we get a 50% draw down, look to buy SpaceX closer to $100. If we get a 70% draw down, which again, this is the standard thing that happens to IPOs. If you get a 70% draw down, $66. Now you might say, "Well, that's ridiculous L, but this is what happens to that. Basically every IPO, very, very, very few IPOs debut and then go up only." Almost everyone has the IPO curse. Remember, SpaceX is going to have a huge amount of supply come in. It's a high float or it's a lowflat high fully diluted value uh stock. came out with just 5 …
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