Wall Street is gearing up for what could become the biggest stock market debut in history as Elon Musk’s SpaceX prepares for its expected IPO next month. Yet, history suggests that investors chasing blockbuster public offerings often fail to outperform the broader market.
The Reuters analysis of the 50 largest IPOs by valuation over the past five years found that roughly three out of four underperformed the benchmark S&P 500 index. While these listings generated excitement and lofty valuations ahead of their market debuts, many failed to deliver sustained returns for investors who bought at or shortly after the IPO.
