SpaceX Achieves Historic $75 Billion IPO, Market Cap Hits $2.1 Trillion
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 3 days ago
0mins
Source: Fool
- Record IPO: SpaceX's IPO on June 12 raised $75 billion, marking the largest IPO in history, with a market cap of approximately $2.1 trillion at the end of its first trading day, surpassing Saudi Aramco and establishing itself as the seventh-largest publicly traded company globally, highlighting its immense potential in the aerospace and AI sectors.
- First Sell Rating: Despite the IPO's enthusiastic reception, CFRA analyst Keith Snyder issued the first sell rating shortly after trading began, with a price target of $115, implying a potential decline of 29% from the first day closing price of $160.95, reflecting concerns over execution risks.
- Execution and Growth Risks: Analysts raised doubts about the development of SpaceX's reusable rocket, Starship, citing its capital-intensive and time-sensitive nature as prone to delays, while also expressing caution regarding the growth trajectory of AI startup xAI, which lacks sufficient margins and differentiation to justify a premium valuation.
- Historical Bubble Risks: Large tech IPOs have historically faced significant drawdown risks, with data showing that the average drawdown for the 30 largest tech IPOs since 2012 is 55%, suggesting that if SpaceX follows this trend, its shares could fall below $80, indicating that investors should be cautious about chasing hot IPOs.
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About SPCX
Space Exploration Technologies Corp. designs, manufactures, launches, and operates products and services built on technologies, including rockets and spacecraft. The Company's segments include Space, Connectivity, and artificial intelligence (AI). Its Space segment designs, manufactures, and launches reusable rockets to provide access to space. Its Connectivity segment operates broadband data and communications network powered by approximately 9,600 Starlink broadband and mobile satellites in Low-Earth orbit, delivering connectivity to consumer, enterprises, and government customers over 164 countries, territories, and other markets. In its AI segment, it operates a vertically integrated AI platform spanning its truth-seeking frontier model Grok, AI solutions for consumer and enterprise customers, X-its real-time information, entertainment, and free speech platform and AI computational infrastructure.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- IPO Plans: DayOne is planning a U.S. initial public offering targeting a valuation of $20 billion; however, MGX may be unwilling to match this price, which could impact the deal's completion, and DayOne may still opt to pursue the IPO independently.
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See More
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- Technological Upgrade Progress: Ethereum is set to undergo the Glamsterdam upgrade in the second half of 2026, which is expected to further enhance network speed and security while reducing transaction fees, thereby increasing its appeal among developers and solidifying its market leadership.
- Historical Upgrade Review: Ethereum completed The Merge upgrade in 2022, successfully transitioning from a proof-of-work (PoW) to a proof-of-stake (PoS) model, reducing energy consumption by over 99% and attracting over 232,000 active developers, showcasing its robust ecosystem.
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See More
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See More
