'Mag 7' is no more, meet the 'FAB 10': Retail investors buy SpaceX in record numbers for their new portfolio plan

Retail investors came out in droves for Friday's SpaceX IPO, and analysts are rebranding the entire tech sector to account for its outsized success. Retail net buying was $117 million for SpaceX stock on its first day of trading, amounting to 56% of all retail purchases in the equities market, according to a Sunday analysis from Vanda Research. Retail investors ended up with larger-than-average 20% of the $75 billion IPO while hedge funds took 10% and institutional investors with a buy-and-hold strategy took 70%, Reuters reported on Monday, citing a person close to the deal. The $117 million of Friday single-stock retail purchases tracked by Vanda is separate from the overall retail allocation, much of which goes through brokerages. That retail enthusiasm was specific to SpaceX and did not reflect a large overall surge in single-stock activity among these Mom and Pop investors. In fact, at just $209.3 million in trading, last week had the lowest amount of net retail purchases of individual stocks since March, 2020, Vanda analysts found. A new cohort of elite companies The targeted zeal for SpaceX is another sign of concentrated interest in the elite mega-cap companies that have been driving performance in equity markets and investment in the broader economy. SpaceX's initiation into this club, along with forthcoming debuts from frontier software makers OpenAI and Anthropic, is forcing a rebrand of the club itself. …