The SpaceX and OpenAI IPOs Are Imminent. History Says the Stocks Will Do This When They Start Trading.
SpaceX and OpenAI are preparing for blockbuster IPOs in 2026 with valuations that would make them the largest in U.S. history. However, historical data shows that large IPOs typically underperform in the long term, with the 10 largest IPO stocks declining a median of 26% in their first year. Investors are cautioned against buying immediately, as initial excitement tends to fade quickly.
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Publisher: The Motley Fool
Author: Trevor Jennewine
Categories: Equities, IPOs
Tickers: META, PLTR, UBER, BABA
Sentiment: Positive — Listed as one of the few large IPO stocks that has beaten the S&P 500 since going public, demonstrating strong long-term performance. Mentioned as the only S&P 500 stock currently trading at a more expensive valuation than SpaceX and OpenAI (75x sales), indicating extreme valuation but no specific performance commentary.
Keywords: IPO, SpaceX, OpenAI, initial public offering, market valuation, stock performance, investment risk, large-cap IPOs
Insights:
- META: Positive: Listed as one of the few large IPO stocks that has beaten the S&P 500 since going public, demonstrating strong long-term performance.
- PLTR: Neutral: Mentioned as the only S&P 500 stock currently trading at a more expensive valuation than SpaceX and OpenAI (75x sales), indicating extreme valuation but no specific performance commentary.
- UBER: Positive: While initially underperforming the S&P 500 post-IPO, the stock is up 143% over the last three years, essentially doubling the S&P 500's return, demonstrating that patient investors who waited for better entry points were well rewarded.