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IPO · Nasdaq · SpaceX · Valuation
SpaceX's Nasdaq debut saw its shares close 19% higher at $161, propelling its market value past $2 trillion and making it the sixth-largest U.S. company after a record-setting $75 billion IPO.
The launch proceeded smoothly, with shares fluctuating between 15% and 30% gains throughout the trading session. This IPO, which raised $75 billion, more than doubled the proceeds of Saudi Aramco's 2019 record-setting offering.
Investors, including large institutions and retail fans who received about 20% of the allocation, expressed euphoria despite a reported loss last year. The company's ambitious vision, encompassing rockets, Starlink internet service, and AI, along with its stated $28.5 trillion market opportunity, captivated the market.
Based on a projected revenue of $18.7 billion in 2025, SpaceX's market cap implies a price-to-revenue ratio of approximately 110. While Morningstar analysts suggest a fairer valuation around $780 billion, CFRA initiated coverage with a sell rating.
SpaceX's expected fast-track inclusion in the Nasdaq 100 will soon generate fresh demand from passive funds and ETFs. The successful debut alleviates market concerns regarding a potential flood of new IPOs from AI heavyweights like Anthropic and OpenAI.
