SpaceX Makes History with Largest IPO Valued Over $2 Trillion
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 4 days ago
0mins
Source: Fool
- Historic IPO: SpaceX concluded its first trading day with a valuation exceeding $2 trillion, positioning itself among the top ten publicly traded companies in the U.S., although the inherent uncertainties of IPOs have sparked widespread interest.
- IPO Performance Analysis: According to FactSet Research, eight out of the top ten U.S. IPOs have significantly underperformed the S&P 500, with a median shortfall of 127 percentage points, indicating that the long-term performance of IPOs often falls short of expectations.
- Investment Strategy Recommendation: Despite the excitement surrounding SpaceX's IPO, historical data suggests that holding an S&P 500 ETF yields higher returns, with the index achieving nearly 800% total returns over the past 20 years, making it an ideal choice for long-term investors.
- Market Participation Threshold: The S&P 500 has strict requirements for companies, meaning that IPOs like SpaceX will not be included until profitability is demonstrated, providing investors with time to observe and assess performance before committing capital.
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Analyst Views on FDS
Wall Street analysts forecast FDS stock price to rise
12 Analyst Rating
1 Buy
7 Hold
4 Sell
Hold
Current: 228.300
Low
253.00
Averages
295.91
High
326.00
Current: 228.300
Low
253.00
Averages
295.91
High
326.00
About FDS
FactSet Research Systems Inc. is a global financial digital platform and enterprise solutions provider. The Company's solutions deliver financial data, analytics, and open technology to global clients, including individual users. Its segments include the Americas, EMEA and Asia Pacific. It provides financial data and market intelligence on securities, companies, industries and people to enable its clients to research investment ideas and analyze, monitor and manage their portfolios. It supports various workflows, including investment research, quantitative research, portfolio management and trading, portfolio analytics, wealth management, ESG investing solutions, industry analysis and data solutions. It provides open and flexible technology offerings, including a configurable desktop and mobile platform, and comprehensive data feeds. Its technology also includes LogoIntern, a workflow tool to streamline the task of adding, organizing, and formatting logos into pitch decks.
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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