The stock price of Firefly Aerospace decreased by 11% on Friday following a 34% increase in their Nasdaq market debut which demonstrates the market volatility that affects high-growth initial public offerings.
The space technology firm launched its $868 million IPO which became the largest U.S. space offering this year at $45 per share before opening at $70 due to investor enthusiasm following a prolonged public offering drought.
The market analysts explained that hedge funds together with retail traders tend to take their profits quickly which leads to typical market fluctuations. The company Firefly which filed for bankruptcy in 2017 now receives U.S. military and NASA contracts because satellite demand from both government and commercial sectors continues to expand.
The stock price shows institutional backing despite its current decline from its initial public offering price.
