The post-IPO rout for SpaceX (SPCX) is offering up a painful reminder to the average investor on two fronts. 

One, a hyped-up IPO is more of an exit moment for investors who got in early. And two, share prices are often volatile after the public listing, as investors dig in on near-term performance potential and anticipate insiders dumping their stock when lockups expire.

Quick analysis: SpaceX stock is trading at a record low, down about 31% from the first day’s closing price. Over the past 15 years, the one-year decline from the first-day closing price has been 52%, per Creative Planning (chart below). 

Only five companies from the list notched a positive return one year after going public: Palantir (PLTR), Airbnb (ABNB), Arm Holdings (ARM), Snowflake (SNOW), and Maplebear (CART).

The backstory: SpaceX made its historic public debut on the Nasdaq (^IXIC) on June 12. The stock officially opened for trading around midday at $150 per share.

Driven by heavy demand from institutional and retail investors, the stock steadily climbed throughout the session before closing its first day at $160.95.

The shares have come under pressure. There hasn’t been any timeline for the speculated merger of SpaceX and Tesla (TSLA), and concerns continue about potential near-term selling.

A series of restrictions on additional stock sales by insiders, employees, and early investors will lift over the ​next several months. Rank-and-file employees and some early investors will be able to unload 911.5 million ⁠shares on the second trading day after the company’s first quarterly report.

The company is slated to report on August 4. 

“I do think that this is a stock you’re buying for the next three to five to 10 years. It’s in our thematic portfolio, which has a focus on space. So I, I just view this [pullback] as an opportunity. We’ve added to it as it’s gone down, and we will continue to do so,” Nancy Tengler of Laffer Tengler Investment said.

Bottom line: Let SpaceX stock come to you before trying to get into the mix right now. The bears are in control.

See how the market handles a rash of new sales from insiders. It’s also prudent to scrutinize SpaceX’s latest earnings and financial statements as Elon Musk continues to build out the company.

Brian Sozzi is Yahoo Finance’s Executive Editor, host of the Power Players with Brian Sozzi podcast, and a member of Yahoo Finance’s editorial leadership team. Follow Sozzi on X @BrianSozzi, Instagram, and LinkedIn. Tips on stories? Email brian.sozzi@yahoofinance.com.

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