"According to Reuters, SpaceX is targeting a June 11 pricing and plans to begin trading on June 12 under the ticker SPCX. Reuters also reported the valuation could reach as high as $1.75 trillion. That would immediately make SpaceX one of the largest publicly traded companies on Earth. But before investors rush to hit the buy button on opening day, history suggests patience may be the smarter move."
"According to Nasdaq research, nearly 64% of IPOs underperform the broader market over their first three years. Many trail by more than 10 percentage points as the initial hype fades and valuations normalize. The data on the biggest IPOs is telling: SpaceX could face the same issue. At a $1.75 trillion valuation, SPCX would debut worth more than companies like Alphabet were just a few years ago."
"Investors buying on day one may already be paying tomorrow's price today. Granted, SpaceX is not some speculative startup with no revenue. The company dominates global launch services and has transformed satellite internet through Starlink. But even phenomenal businesses can become mediocre investments if the entry price leaves little room for upside."
SpaceX’s upcoming IPO is generating major retail interest because private-company gains have increasingly benefited venture capital and institutional investors. SpaceX is targeting June 11 pricing and June 12 trading under ticker SPCX, with a reported valuation that could reach $1.75 trillion. Such a debut would place SpaceX among the largest publicly traded companies. However, IPO performance often diverges from initial excitement. Nasdaq research shows nearly 64% of IPOs underperform the broader market over their first three years, frequently lagging by more than 10 percentage points as hype fades and valuations normalize. Even strong companies can become mediocre investments if the entry price limits future upside.
Read at 24/7 Wall St.
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