Wall Street ends lower as rate hike expectations grow
US stocks ended lower Wednesday after the Fed signaled a September rate hike, with small caps leading declines.
Since their June 12 IPO, DoorDash has gained 42% while SpaceX dropped 6%, giving DoorDash a 48% edge.
Since SpaceX began trading publicly at $150 per share on June 12, DoorDash has beaten it by 48%.
SpaceX, known for erasing $1 trillion in market value for its investors, has fallen 6%, whereas DoorDash has gained 42%.
Based on today's prices, investing in restaurant stocks on the Nasdaq would have been wiser than buying SpaceX. Texas Roadhouse is up 13% relative to SpaceX, Flanigan's is ahead by 35%, and Cracker Barrel has done 12% better.
The decline from SpaceX's all-time high looks even worse.
SpaceX has dropped 37% since June 16. On that date it reached an intraday peak of $225.64 and has done nothing but fall since.
DoorDash started trading at $155.24 on June 12, while SpaceX's first trade was at $150, which is $15 above its official IPO price.
Most SpaceX investors who held their IPO shares until now are sitting on unrealized losses.
Only those who bought at the pre-Nasdaq open price of $135 per share could have an unrealized gain on shares held since the IPO.
SpaceX IPO banks yell ‘buy’ as stock craters
Both firms released quarterly earnings over the timeframe. The figures management presented were vastly different.
DoorDash recently said it handled 970 million delivery orders in the quarter, with marketplace gross order value of $33.1 billion and revenue of $4.5 billion.
Even excluding a Deliveroo acquisition, orders increased 17% and revenue climbed 24%.
The company also reported $944 million in operating cash flow and $742 million in free cash flow.
SpaceX likewise posted its quarterly numbers this month, showing revenue of $7.8 billion but a loss of $541 million. Capital expenditures came in at $18.4 billion.
A $10,000 investment in DoorDash at the June 12 open would be worth roughly $14,200 now, while the same amount in SpaceX would be about $9,400.
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US stocks ended lower Wednesday after the Fed signaled a September rate hike, with small caps leading declines.
US stocks reversed course and dropped to day's lows after absorbing a hawkish message, with the S&P 500 falling 21 points to 7709.
Walmart's 1970 IPO returned 3,885,000% due to stock splits, showing SpaceX and Anthropic buyers that long-term holding and splits matter.
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