SpaceX IPO Triggers Trading Platform Outages
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 hour ago
0mins
Source: stocktwits
- Platform Disruptions: Downdetector reported a sharp spike in outage reports to about 4,000 around midday Eastern Time, with users experiencing issues placing, canceling, or executing orders, particularly for newly listed SpaceX shares, leading to financial losses for some traders.
- Strong IPO Performance: Despite trading issues, SpaceX (SPCX) opened at approximately $150, an 11% premium to its IPO price, and surged as much as 30% higher in early trading, briefly pushing its market capitalization above $2.2 trillion, indicating strong investor interest.
- Surge in Trading Volume: Robinhood, a key channel for retail participation in the IPO, saw record-breaking traffic due to the SpaceX IPO, with its official help account noting latency and intermittent issues for some users, although essential systems later recovered.
- Market Sentiment Analysis: Over the past 24 hours, sentiment around Robinhood remained neutral, while sentiment for SpaceX was deemed 'extremely bullish', reflecting strong investor confidence in the newly listed company, despite Robinhood's stock falling 19% this year.
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Analyst Views on HOOD
Wall Street analysts forecast HOOD stock price to rise
20 Analyst Rating
16 Buy
4 Hold
0 Sell
Strong Buy
Current: 92.230
Low
130.00
Averages
156.24
High
181.00
Current: 92.230
Low
130.00
Averages
156.24
High
181.00
About HOOD
Robinhood Markets, Inc. is focused on providing financial services offering retail brokerage, crypto, advisory, digital banking services, and private markets access to investors. Its offerings include Brokerage, Robinhood Crypto, Custody, Robinhood Wallet, Robinhood Gold, and Robinhood Gold Card. Brokerage services include investing, options trading, fractional trading, recurring investment, access to investing on margin, fully paid securities lending, cash sweep, instant withdrawals, Robinhood retirement, 24-hour market, joint investing accounts, and event contracts. It also offers a variety of ways for its customers to grow their financial knowledge, including Robinhood Learn, In-App Education, Newsfeeds, Sherwood Snacks, and Crypto Learn and Earn. It also operates regulated crypto platforms including Bitbuy and Coinsquare. Its self-clearing system, order routing system, data platform, and other back-end infrastructure allow its customers to focus on investing, saving and spending.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Robinhood Customers Face Issues During SpaceX Trading Launch
- Trading Outages: During the first minutes of SpaceX trading, Robinhood customers reported around 5,000 outages, causing latency and intermittent issues for some users, although these problems receded by 12:30 PM ET.
- Surge in Traffic: Robinhood noted record-breaking traffic today, indicating strong user interest in SpaceX shares despite the technical difficulties, reflecting the market's high attention towards the company.
- Market Performance: SpaceX shares opened approximately 11% higher at $150 after pricing at $135, and surged 25.56% to $169.50 during afternoon trading, showcasing investor optimism about its future prospects.
- Stable Competitors: Unlike Robinhood, other platforms such as Charles Schwab and Fidelity Investments did not report significant issues during SpaceX trading, highlighting Robinhood's challenges in technical stability, which could impact its market reputation.
See More
Robinhood Approved as IPO Underwriter Ahead of SpaceX Debut
- IPO Underwriter Approval: Robinhood Securities has been approved as an IPO underwriter, marking a strategic shift just ahead of SpaceX's market debut, which is expected to generate stable underwriting fee revenue and reduce reliance on customer trading activity.
- Customer Base Growth: As of the end of May, Robinhood reported 27.7 million funded customers, an increase of approximately 1.76 million year-over-year, positioning the company favorably in the underwriting market due to its substantial retail demand pool, potentially attracting more issuers.
- Market Dynamics Shift: SpaceX plans to debut at a fixed offering price of $135 per share, aiming to raise about $75 billion, with Robinhood potentially receiving up to 30% of the offering allocated to retail investors, a notable increase compared to typical large IPO allocations, highlighting the growing importance of retail investors.
- Strong Financial Performance: Robinhood's total platform assets reached $377 billion by the end of May, up 48% year-over-year, with net deposits of $5.6 billion in May; despite a 47% drop in cryptocurrency revenue, overall revenue still grew by 15%, demonstrating the resilience and potential growth of its business.
See More
SpaceX IPO Triggers Trading Platform Outages
- Platform Disruptions: Downdetector reported a sharp spike in outage reports to about 4,000 around midday Eastern Time, with users experiencing issues placing, canceling, or executing orders, particularly for newly listed SpaceX shares, leading to financial losses for some traders.
- Strong IPO Performance: Despite trading issues, SpaceX (SPCX) opened at approximately $150, an 11% premium to its IPO price, and surged as much as 30% higher in early trading, briefly pushing its market capitalization above $2.2 trillion, indicating strong investor interest.
- Surge in Trading Volume: Robinhood, a key channel for retail participation in the IPO, saw record-breaking traffic due to the SpaceX IPO, with its official help account noting latency and intermittent issues for some users, although essential systems later recovered.
- Market Sentiment Analysis: Over the past 24 hours, sentiment around Robinhood remained neutral, while sentiment for SpaceX was deemed 'extremely bullish', reflecting strong investor confidence in the newly listed company, despite Robinhood's stock falling 19% this year.
See More
SpaceX Achieves Historic IPO with Soaring Stock Price
- IPO Performance: SpaceX went public on June 12, pricing shares at $135, opening at $150, and currently trading around $170, achieving a market cap of $1.77 trillion, marking the largest IPO in history and reflecting strong market confidence in its growth prospects.
- Retail Investor Participation: In this IPO, SpaceX floated less than 5% of its shares but allocated up to 30% to retail investors, broadening its investor base and attracting more smaller investors, which enhances market dynamism.
- Investment Risk Analysis: Despite a 33% revenue growth in 2025, SpaceX's valuation has reached 95 times its projected sales for that year, with expectations of a price-to-sales ratio exceeding 100, indicating unsustainable valuation and potential risks for investors.
- Concentrated Management Control: Elon Musk retains 82% of the voting rights post-IPO, indicating the company's immunity to investor pressure, which may limit shareholder influence and affect future capital raising efforts, potentially impacting investor interests.
See More
SpaceX Goes Public with $1.77 Trillion Valuation, Largest IPO in History
- IPO Performance: SpaceX went public at $135 per share, achieving a valuation of approximately $1.77 trillion, marking the largest IPO in history and underscoring its significant position in the global market.
- Oversubscription Details: The IPO was nearly four times oversubscribed, with retail investors receiving about 30% of the shares, a stark contrast to the typical 5% to 10% allocation, indicating strong demand.
- Market Volatility: Given the intense market interest, the stock price is expected to be highly volatile, prompting investors to carefully consider their order types to avoid losses during rapid price fluctuations.
- Valuation Concerns: Despite SpaceX's strong performance in rocket launches and Starlink revenue, Morningstar estimates its fair value at around $780 billion, significantly lower than the $1.77 trillion IPO valuation, raising concerns about potential overvaluation.
See More
SpaceX Stock Soars on Market Debut but Faces Challenges Ahead
- Historic IPO: SpaceX went public on June 12, pricing shares at $135, opening at $150, and currently trading around $170, achieving a market cap of $1.77 trillion, marking the largest IPO in history and reflecting strong market confidence in its future.
- Retail Investor Focus: In this offering, SpaceX allocated up to 30% of its shares to retail investors rather than institutions, a strategy that broadened its investor base and allowed more small investors to participate in the IPO.
- Valuation Risks: SpaceX debuted with a valuation of 95 times its 2025 sales, and the price-to-sales ratio is expected to exceed 100 post-IPO, indicating an unsustainable valuation that could lead to a price drop in the short term, affecting investor sentiment.
- Profitability Challenges: The losses from its space and AI divisions are eroding Starlink's profits, and as it ramps up investments in AI infrastructure, this pressure may intensify, impacting its long-term growth potential.
See More
Robinhood Customers Face Issues During SpaceX Trading Launch
- Trading Outages: During the first minutes of SpaceX trading, Robinhood customers reported around 5,000 outages, causing latency and intermittent issues for some users, although these problems receded by 12:30 PM ET.
- Surge in Traffic: Robinhood noted record-breaking traffic today, indicating strong user interest in SpaceX shares despite the technical difficulties, reflecting the market's high attention towards the company.
- Market Performance: SpaceX shares opened approximately 11% higher at $150 after pricing at $135, and surged 25.56% to $169.50 during afternoon trading, showcasing investor optimism about its future prospects.
- Stable Competitors: Unlike Robinhood, other platforms such as Charles Schwab and Fidelity Investments did not report significant issues during SpaceX trading, highlighting Robinhood's challenges in technical stability, which could impact its market reputation.
See More
Robinhood Approved as IPO Underwriter Ahead of SpaceX Debut
- IPO Underwriter Approval: Robinhood Securities has been approved as an IPO underwriter, marking a strategic shift just ahead of SpaceX's market debut, which is expected to generate stable underwriting fee revenue and reduce reliance on customer trading activity.
- Customer Base Growth: As of the end of May, Robinhood reported 27.7 million funded customers, an increase of approximately 1.76 million year-over-year, positioning the company favorably in the underwriting market due to its substantial retail demand pool, potentially attracting more issuers.
- Market Dynamics Shift: SpaceX plans to debut at a fixed offering price of $135 per share, aiming to raise about $75 billion, with Robinhood potentially receiving up to 30% of the offering allocated to retail investors, a notable increase compared to typical large IPO allocations, highlighting the growing importance of retail investors.
- Strong Financial Performance: Robinhood's total platform assets reached $377 billion by the end of May, up 48% year-over-year, with net deposits of $5.6 billion in May; despite a 47% drop in cryptocurrency revenue, overall revenue still grew by 15%, demonstrating the resilience and potential growth of its business.
See More
SpaceX IPO Triggers Trading Platform Outages
- Platform Disruptions: Downdetector reported a sharp spike in outage reports to about 4,000 around midday Eastern Time, with users experiencing issues placing, canceling, or executing orders, particularly for newly listed SpaceX shares, leading to financial losses for some traders.
- Strong IPO Performance: Despite trading issues, SpaceX (SPCX) opened at approximately $150, an 11% premium to its IPO price, and surged as much as 30% higher in early trading, briefly pushing its market capitalization above $2.2 trillion, indicating strong investor interest.
- Surge in Trading Volume: Robinhood, a key channel for retail participation in the IPO, saw record-breaking traffic due to the SpaceX IPO, with its official help account noting latency and intermittent issues for some users, although essential systems later recovered.
- Market Sentiment Analysis: Over the past 24 hours, sentiment around Robinhood remained neutral, while sentiment for SpaceX was deemed 'extremely bullish', reflecting strong investor confidence in the newly listed company, despite Robinhood's stock falling 19% this year.
See More
SpaceX Achieves Historic IPO with Soaring Stock Price
- IPO Performance: SpaceX went public on June 12, pricing shares at $135, opening at $150, and currently trading around $170, achieving a market cap of $1.77 trillion, marking the largest IPO in history and reflecting strong market confidence in its growth prospects.
- Retail Investor Participation: In this IPO, SpaceX floated less than 5% of its shares but allocated up to 30% to retail investors, broadening its investor base and attracting more smaller investors, which enhances market dynamism.
- Investment Risk Analysis: Despite a 33% revenue growth in 2025, SpaceX's valuation has reached 95 times its projected sales for that year, with expectations of a price-to-sales ratio exceeding 100, indicating unsustainable valuation and potential risks for investors.
- Concentrated Management Control: Elon Musk retains 82% of the voting rights post-IPO, indicating the company's immunity to investor pressure, which may limit shareholder influence and affect future capital raising efforts, potentially impacting investor interests.
See More
SpaceX Goes Public with $1.77 Trillion Valuation, Largest IPO in History
- IPO Performance: SpaceX went public at $135 per share, achieving a valuation of approximately $1.77 trillion, marking the largest IPO in history and underscoring its significant position in the global market.
- Oversubscription Details: The IPO was nearly four times oversubscribed, with retail investors receiving about 30% of the shares, a stark contrast to the typical 5% to 10% allocation, indicating strong demand.
- Market Volatility: Given the intense market interest, the stock price is expected to be highly volatile, prompting investors to carefully consider their order types to avoid losses during rapid price fluctuations.
- Valuation Concerns: Despite SpaceX's strong performance in rocket launches and Starlink revenue, Morningstar estimates its fair value at around $780 billion, significantly lower than the $1.77 trillion IPO valuation, raising concerns about potential overvaluation.
See More
SpaceX Stock Soars on Market Debut but Faces Challenges Ahead
- Historic IPO: SpaceX went public on June 12, pricing shares at $135, opening at $150, and currently trading around $170, achieving a market cap of $1.77 trillion, marking the largest IPO in history and reflecting strong market confidence in its future.
- Retail Investor Focus: In this offering, SpaceX allocated up to 30% of its shares to retail investors rather than institutions, a strategy that broadened its investor base and allowed more small investors to participate in the IPO.
- Valuation Risks: SpaceX debuted with a valuation of 95 times its 2025 sales, and the price-to-sales ratio is expected to exceed 100 post-IPO, indicating an unsustainable valuation that could lead to a price drop in the short term, affecting investor sentiment.
- Profitability Challenges: The losses from its space and AI divisions are eroding Starlink's profits, and as it ramps up investments in AI infrastructure, this pressure may intensify, impacting its long-term growth potential.
See More
