Has the excitement after SpaceX’s IPO faded? The average investor is close to breaking even

After SpaceX’s long-awaited stock market debut, sentiment around the company has clearly started to cool. The latest correction in the company’s shares has significantly reduced earlier gains, and some investors who bought the stock after the IPO are now very close to their break-even point.

During the most recent trading session, SpaceX’s share price fell by 3.6%, slipping slightly below $185 per share. This is another sign that the initial euphoria surrounding the company’s market debut may be giving way to a more cautious assessment of its valuation and fundamentals.

CNBC analyzed the position of the average investor using VWAP, or volume-weighted average price. For SpaceX, this figure stood at $181.71 per share. This means that the typical buyer of the stock is currently roughly on the border between profit and loss.

Retail investors who received shares at the offering price of $135 are in a somewhat better position. Even after the recent declines, they may still be sitting on gains. The risk, however, is that a further correction could quickly weaken their position as well.

Recent price movements suggest that the market is beginning to view SpaceX less through the lens of post-debut excitement and more through a realistic assessment of the company’s value. If investors decide that the earlier optimism was excessive, downward pressure on the stock may continue.