SpaceX Is Headed for a $1.75 Trillion IPO. History Says the Stock Could Be Down 32% a Year From Now
Nasdaq rule changes could trigger automatic buying from exchange-traded funds and passive funds, while historical data show mega-IPOs have lost 31.9% after one year.
- SpaceX is targeting a $1.75 trillion valuation on its June 12 IPO, aiming to become history's largest public offering. The company dominates satellite broadband and rocket launches through its Starlink network and Falcon platform.
- Targeting a $28.5 trillion total addressable market, the company leverages technological leadership and government partnerships spanning satellite broadband, defense contracts, and deep-space logistics. This massive addressable market exceeds current U.S. inflation-adjusted GDP of $24.17 trillion.
- FactSet data indicates IPOs larger than $50 billion produced median 1-year losses of 31.9%. Investors chasing these massive listings often face significant volatility, even when the company eventually becomes a defining business.
- The Nasdaq may modify index inclusion rules, allowing SpaceX shares to enter major indexes almost immediately after listing. This forces ETFs and passive funds to purchase shares, creating automatic demand regardless of valuation.
- Iconic firms like Alphabet and Alibaba traded sharply lower after their debuts before recovering years later, suggesting initial investors faced turbulent rides. Smart investors should separate admiration for the business from enthusiasm for the stock price.
24 Articles
24 Articles
SpaceX is currently aiming at a valuation of at least $1.8 trillion in its initial public offer, according to people familiar with the matter, as Elon Musk’s rocket and artificial intelligence company approaches its stock market debut. Bloomberg News reported in April that SpaceX aspired to a valuation of over 2 trillion. The target has been adjusted to a lower level following consultations with advisors and investors, said the people, who reque…
SpaceX lowers IPO target to $1.8T, marketing starts 4 June
SpaceX is targeting a valuation of at least $1.8 trillion in its initial public offering, down from the $2 trillion-plus it was aiming for as recently as April, according to Bloomberg. The target was adjusted after consultations with advisers and investors, and could still move higher depending on feedback during the formal marketing period, which is […] This story continues at The Next Web
SpaceX, the aerospace company that tech billionaire Elon Musk plans to take public soon, is currently aiming for a valuation of at least 1.8 trillion dollars (nearly 1.6 trillion euros) at the upcoming IPO. This is reported by news agency Bloomberg, citing sources.
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