Analysis-SpaceX debut draws a crowd, but few recent hot IPOs outpace the market

Reuters analysis finds that most of the 50 largest IPOs over the past five years have underperformed the S&P 500, highlighting that buying a broad-market index fund would have beaten roughly three-quarters of those deals. The report shows an average gain of 27% for the tracked IPOs through May 21 versus a 53% average for the S&P 500 over the same periods. The piece warns that very high pre-listing valuations (and high price-to-sales ratios) often presage weaker long-term returns, even as a few AI-related listings—Astera Labs and Arm—have significantly outpaced the market. The article notes SpaceX’s expected blockbuster listing (ticker SPCX) and its targeted $1.75 trillion valuation with an estimated price-to-sales near 100, underscoring investor caution despite heavy retail access via platforms like Robinhood and SoFi.