SpaceX debut sparks trading frenzy, but threatens to suck oxygen out of stock market
Elon Musk’s historic SpaceX debut caused a trading frenzy Friday, shooting the company to a $2.15 trillion valuation – but its sheer size is threatening to suck oxygen out of the rest of the market.The rocket-launch firm debuted on the Nasdaq just after 11:47 a.m.at $150 a share, making it the largest-ever IPO – and making Musk the world’s first trillionaire.
The stock closed up 19% at $160.95.But other space stocks plummeted, suffering such big losses that they erased strong gains from the previous day as traders unable to get their hands on SpaceX shares attempted to cash in on the frenzy.“It’s pulling a ton of money into just one company, which could temporarily drain liquidity from the rest of the market as investors focus on this,” Ken Mahoney, chief executive of Mahoney Asset Management, told The Post.“This kind of massive offering draws in cash from all directions — big institutions, everyday investors, and funds that might otherwise be buying other stocks,” he added.“With so much excitement around SpaceX, some of that money is shifting away from smaller companies or different sectors, at least for now.”Shares in Virgin Galactic, the space company founded by English business magnate Sir Richard Branson, plummeted about 30% Friday.
The stock was down 11% this week.Intuitive Machines and Rocket Lab Corporation fell 12.8% and 7%, respectively, over the week.Satellite companies were also hit hard, since SpaceX owns Starlink – Musk’s satellite internet service provider, which has grown into a major defense contractor over the past few years.Its drones have reportedly been used in “kamikaze” attacks in Iran.AST SpaceMobile, Planet Labs and Satellogic were down 12%, 8.8% and 11.4%, respectively, this week.Kenin Spivak, chief executive of SMI Group, warned the SpaceX IPO could still create “a whirlpool effect unlike anything we have seen before.”Bitcoin, for example, traded roughly flat Friday at about $63,000 – but the crypto...