SpaceX Aims for $1.75 Trillion IPO Record
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 4 days ago
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Should l Buy META?
Source: NASDAQ.COM
- IPO Market Value Target: SpaceX is targeting a $1.75 trillion valuation for its IPO, which would make it the largest in U.S. history; however, historical data shows that the top 10 IPOs have seen a median decline of 31% in their first year, potentially undermining investor confidence.
- Listing Timeline: SpaceX confidentially filed its IPO paperwork with the SEC last month and plans to kick off its IPO roadshow on June 8, with shares expected to start trading in late June or early July, providing an opportunity to attract institutional investors.
- Historical Performance Warning: Data indicates that seven out of the ten largest IPOs have underperformed the S&P 500 since their listings, with Alibaba's market value of $169 billion at IPO being significantly lower than SpaceX's target, highlighting the risks associated with high-value IPOs.
- Investor Caution Advice: Despite the excitement surrounding SpaceX's IPO, historical trends suggest that investors should be cautious when purchasing high-value stocks, as most similar companies tend to perform poorly post-IPO, recommending that investors wait for more favorable buying opportunities.
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Analyst Views on META
Wall Street analysts forecast META stock price to rise
44 Analyst Rating
37 Buy
6 Hold
1 Sell
Strong Buy
Current: 616.810
Low
655.15
Averages
824.71
High
1117
Current: 616.810
Low
655.15
Averages
824.71
High
1117
About META
Meta Platforms, Inc. is building human connections, powered by artificial intelligence and immersive technologies. The Company's products enable people to connect and share with friends and family through mobile devices, personal computers, virtual reality (VR) and mixed reality (MR) headsets, augmented reality (AR), and wearables. It also helps people discover and learn about what is going on in the world around them, enabling people to share their experiences, ideas, photos, videos, and other content with audiences ranging from their closest family members and friends to the public at large. The Company's segments include Family of Apps (FoA) and Reality Labs (RL). FoA segment includes Facebook, Instagram, Messenger, WhatsApp and Threads. RL segment includes its virtual, augmented, and mixed reality related consumer hardware, software and content. Its product offerings in VR include its Meta Quest devices, as well as software and content available through the Meta Horizon Store.
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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- Massive User Base: With 3.5 billion daily active users, nearly half of the world's population, Meta's extensive user base provides robust support for future advertising revenue and user engagement, further solidifying its market position.
- Capital Expenditure Plans: Meta is ramping up the construction of data centers with a capital expenditure budget nearing $150 billion, a strategic investment that not only enhances its technological infrastructure but also has the potential to yield significant returns in the future, bolstering its competitiveness in the AI sector.
- CEO Influence: Mark Zuckerberg's leadership remains a focal point for market observers; despite some analysts expressing doubts about his management capabilities, his past successes instill investor confidence in Meta's future, as evidenced by the market's positive response to its potential.
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- Significant Revenue Growth: AMD's first-quarter revenue rose 38% year-over-year to $10.3 billion, exceeding market expectations and showcasing strong performance in its data center business, particularly driven by surging demand for AI-related products, which further solidifies its market position.
- Substantial Free Cash Flow Increase: AMD's free cash flow tripled year-over-year to a record $2.6 billion, indicating a significant improvement in capital management and profitability, providing ample funding for future investments and strategic initiatives.
- Optimistic Future Outlook: AMD projects second-quarter revenue to reach approximately $11.2 billion, implying a 46% year-over-year growth, with server CPU revenue expected to grow over 70%, reflecting the company's strong confidence in AI computing demand, potentially driving long-term growth.
- Increased Valuation Risks: Despite AMD's optimistic growth outlook, its price-to-earnings ratio stands at 150 times, significantly higher than competitor Nvidia's 26 times, indicating that market expectations for its future performance may be overstated, prompting investors to carefully assess potential risks.
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- Stable Market Share: Nvidia maintained an 86% market share in AI accelerator sales in 2025, demonstrating its strong competitive position despite ASIC competition, as its GPUs remain the industry standard in AI workloads.
- Surge in Capital Expenditures: Wall Street analysts now forecast that capital expenditures among the top five hyperscalers will increase nearly 80% to $805 billion in 2026, exceeding previous estimates, which will directly boost demand for Nvidia's GPUs.
- Future Valuation Potential: Brad Gerstner, founder of Altimeter Capital, believes Nvidia is severely undervalued and could reach a market cap of $10 trillion, implying about 100% upside, reflecting the market's underestimation of AI infrastructure demand.
- Rapid Product Iteration: Nvidia plans to shorten its GPU update cycle to 12-18 months, compared to the typical 3-5 years for custom chips, a strategy that will help maintain its technological edge and further solidify its market position in the coming years.
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- Stable Market Share: Nvidia maintains an 86% market share in AI accelerator sales for 2025, demonstrating its strong competitive position in the AI sector despite customers gradually adopting ASICs, which have not dented its dominance.
- Surge in Capital Expenditure: Morgan Stanley forecasts that capital expenditures among the top five hyperscalers will increase nearly 80% to $805 billion by 2026, which will further drive demand for Nvidia's GPUs and solidify its status as the industry standard.
- Optimistic Future Valuation: Altimeter Capital's CEO Brad Gerstner believes Nvidia will become the first $10 trillion company, while I/O Fund's Beth Kindig predicts a market cap of $20 trillion by 2030, indicating significant upside potential for shareholders.
- Accelerated Technology Update Cycle: Nvidia plans to shorten its GPU update cycle to 12-18 months, compared to competitors' 3-5 year cycles, a strategy that will help it maintain a leading edge in a rapidly evolving market and enhance its market appeal.
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- Surge in Data Center Revenue: AMD's data center revenue surged 57% year-over-year to $5.8 billion, reflecting strong demand in AI computing and solidifying its market position.
- Impressive Stock Performance: AMD's stock has risen nearly 350% over the past year, trading at nearly 150 times earnings, indicating strong investor confidence in future growth, although high valuations pose risks.
- Optimistic Future Outlook: AMD expects second-quarter revenue to reach $11.2 billion, implying a 46% year-over-year growth, with server CPU revenue projected to grow over 70%, showcasing the company's ongoing expansion potential in AI-related markets.
- Margin Risk: While AMD's adjusted gross margin was 55% in Q1, down from the previous quarter, a shift towards lower-margin Instinct GPUs in the data center business could impact future profitability.
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- Significant Revenue Growth: CoreWeave reported a 112% year-over-year revenue increase in Q1, reaching $2.08 billion, surpassing the analyst consensus of $1.97 billion, indicating strong demand and market share gains in the cloud computing sector.
- Widening Adjusted EPS Loss: Despite robust revenue, the adjusted EPS loss widened to $1.12, exceeding the expected loss of $0.91, reflecting the company's cost pressures and challenges in profitability.
- Growing Project Backlog: CoreWeave's project backlog has ballooned to nearly $100 billion, demonstrating significant market confidence through partnerships with clients like Meta, suggesting substantial future growth potential.
- Increased Capital Expenditure Guidance: Due to rising component costs, CoreWeave raised the lower end of its full-year capital expenditure budget to a range of $31 billion to $35 billion, indicating a cautious approach to future investments while raising concerns about its profitability model.
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