SpaceX IPO: Potentially Millions of Retail Investors Will Make This Costly Mistake -- Don't Be One of Them
SpaceX is expected to go public in the second half of June with a market cap of $1.75 trillion to $2 trillion, making it the eighth-largest publicly traded company on U.S. stock exchanges. The company's IPO is likely to attract millions of retail investors, but history suggests they may make a costly mistake due to overzealousness.
SpaceX is expected to go public in June with a market cap of $1.75 trillion to $2 trillion. The company will be the eighth-largest publicly traded company on U.S. stock exchanges, ahead of Tesla. Up to 30% of SpaceX's shares may be set aside for retail investors, a higher proportion than usual. The IPO is expected to raise $75 billion or more, the largest in history. Historically, large IPOs have often seen initial declines, with companies like Meta, Alibaba, and Saudi Aramco falling by 38%, 9%, and 15% respectively in the six months following their IPOs. SpaceX's valuation is based on $15 billion in revenue, giving it a high price-to-sales ratio. The company's growth prospects are tied to the space economy and AI, which may be prone to an early-stage bubble-bursting event.
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