SpaceX is set to begin trading on the Nasdaq under the ticker symbol SPCX, marking the largest initial public offering (IPO) ever with a pre-trading valuation of $1.77 trillion, based on an IPO price of $135 per share set by SpaceX and its bankers on Thursday [1]. Price indications for SpaceX shares are scheduled to begin at 9:50 a.m. ET, though the actual trading process is expected to take several hours due to high demand from investors [1]. The IPO is being led by Goldman Sachs, Morgan Stanley, JPMorgan Chase, Bank of America, and Citigroup, with over a dozen additional banks participating [1].
The debut comes during a period of heightened enthusiasm for artificial intelligence (AI) on Wall Street, with major stock indexes reaching record highs despite ongoing geopolitical tensions, such as the war with Iran entering its fourth month [1]. Goldman Sachs President John Waldron commented that the SpaceX IPO demonstrates strong investor appetite for financing the AI infrastructure boom and space industry expansion, highlighting the willingness of global capital markets to support these sectors [1].
However, some analysts have expressed skepticism regarding SpaceX's lofty valuation. Morningstar analysts noted that the company, which generated approximately $19 billion in revenue last year, has yet to turn a profit and is, in their view, 'overvalued' at the IPO price. They estimate SpaceX's value at $780 billion, significantly below the IPO valuation [1]. In response to such concerns, SpaceX Chief Operating Officer Gwynne Shotwell emphasized the company's track record of tackling challenging projects and reiterated a focus on long-term goals rather than short-term earnings, stating, 'I do not want to focus on quarterly earnings... what we’re doing is very futuristic' [1].
The IPO is also notable for its broad retail investor participation, with SpaceX planning to offer 30% of the IPO through retail brokerages such as Fidelity, Morgan Stanley’s E-Trade, Charles Schwab, and SoFi [1]. The event is being closely watched as a potential referendum on CEO Elon Musk, who remains a polarizing figure due to his political and social activities [1].
CONCLUSION
SpaceX's record-breaking IPO underscores robust investor interest in AI and space infrastructure, despite concerns about its high valuation and lack of profitability. The company's long-term vision and broad retail participation are key themes, making this debut a significant market event with far-reaching implications.