- SpaceX stock price has crashed by over 30% from its peak last week.
- Other recent IPOs like Cerebras, Circle, and Bullish have also plunged.
- This could be a major red flag to companies like Anthropic and OpenAI.
Top companies that recently went public are imploding, wiping out billions of dollars in investor value and raising red flags for upcoming IPOs, including OpenAI and Anthropic. SpaceX stock fell to $151 today, down 31% from its peak just last week.
Cerebras, SpaceX, Circle, Figma Have Plunged After their IPOs
Cerebras stock tumbled to a record low of $160, down sharply from the all-time high of $385. This is a major reversal for a company whose stock more than doubled shortly after its IPO in May this year. This sell-off intensified this week after it published a strong financial report but issued a weak forward guidance.
Cerebras said its revenue jumped 92% to $191 million, while management expects second-quarter revenue of $194 million, up 88% YoY. Its annual revenue is expected to be between $855 million and $865 million.
Circle Internet, the issuer of USDC, initially surged from its IPO price of $62 to nearly $300 just days after going public. However, the stock later plunged to $49 in February. Since then, every rebound attempt has failed as selling pressure intensified and investor sentiment deteriorated. Its performance may continue deteriorating as the USDC market cap falls.
READ MORE: SpaceX Stock Crashes as We Predicted: Time to Buy the SPCX Dip?
Bullish stock jumped to $117 shortly after its IPO and then retreated to a low of $22 today. That retreat has erased its valuation from over $10.85 billion to $3.35 billion today. Like other crypto exchanges, Bullish is experiencing weak demand as investors amid the ongoing winter.
Figma, a top competitor to Adobe, has also slumped after initially soaring from $84 to $142 within the first few days of its IPO. Today, it has dropped to $17.20, with its valuation plunging from $60 billion to $9 billion.
Red Flag to Potential 2026 IPOs Like Anthropic and OpenAI
This performance is raising a red flag for some companies planning to go public this year. Kraken, Anthropic, and OpenAI have already filed confidentially to go public, while Perplexity is considering an IPO next year. There are concerns that their stocks will initially surge before resuming the downtrend.
On the positive side, the initial pump, followed by a crash, is not new to publicly traded companies. Indeed, studies show that 91% of all companies going public initially jump and then retreat, before entering a multi-year rally.
A good example of this is Meta Platforms, which went public in 2012. It initially doubled, and then crashed by over 50% within a few days, and then later soared to record highs.
READ MORE: Good News for DRAM ETF Stock After Micron Earnings, But Risks Remain
