SpaceX Set to Complete Largest IPO in History
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jun 11 2026
0mins
Source: Fool
- Record-Breaking IPO: SpaceX plans to raise $75 billion in its IPO, surpassing Alibaba's $22 billion in 2014, with an expected valuation nearing $1.8 trillion, highlighting its immense potential in space technology and AI.
- Significant Revenue Growth: Despite a net loss of $4.9 billion last year, SpaceX's revenue surged 33% to $18.7 billion in 2025, with a 15% year-over-year increase in Q1 2026, indicating strong momentum in its core business.
- High Market Demand: Ahead of the IPO, investor demand for SpaceX stock is robust, with orders four times the number of shares the company plans to sell, suggesting that the stock price may exceed the planned IPO price of $135 per share upon debut, reflecting confidence in future growth.
- Cautious Investor Strategy: While the stock may soar initially due to strong demand, historical data shows that many large IPOs underperform post-debut, leading investors to consider waiting for a more reasonable valuation before purchasing SpaceX shares.
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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.
Analysis of SpaceX Stock Volatility Post-IPO
- IPO Performance and Market Reaction: SpaceX went public on June 12 at $135 per share, marking the largest IPO in history, with the stock surging 50% within three days, briefly pushing its market cap to nearly $3 trillion; however, following the Cursor acquisition announcement, the stock price quickly declined, indicating market concerns over its valuation.
- Acquisition Deal Impact: The announcement of SpaceX's $60 billion acquisition of AI company Anysphere raised dilution concerns, leading Morningstar to lower its fair value estimate to $62, reflecting investor skepticism about future profitability amidst a 3.4% dilution of its IPO valuation.
- Financial Status and Profitability: SpaceX reported $18.7 billion in revenue for 2025, a 33% year-over-year increase, but posted a net loss of $4.9 billion, highlighting ongoing profitability pressures, particularly with the AI segment losing $6.4 billion, exacerbating market fears about its future.
- Debt Financing Needs: SpaceX is preparing to issue at least $20 billion in bonds to refinance a $20 billion bridge loan maturing in September 2027, indicating urgent capital needs, while a $30 billion cloud services contract with Google provides some revenue visibility for the future.
See More
MGX Explores Acquisition of Singapore Data Center Operator DayOne
- Acquisition Exploration: Abu Dhabi-backed AI investor MGX is considering acquiring Singapore-based data center operator DayOne, marking a significant step in its global technology expansion, with MGX working with an investment bank to prepare for the potential transaction.
- 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.
- Regional Expansion: If the deal proceeds, it would represent MGX's first acquisition in Asia, as the firm, established just over two years ago, aims to invest over $100 billion in assets across the entire AI chain, including data centers and the powerful chips that support them.
- Investment Background: MGX has invested in some of the largest AI companies globally, including SpaceX's xAI and OpenAI, and has committed $30 billion to an AI infrastructure fund that includes investments in Aligned Data Centers, showcasing its strong financial backing in the rapidly evolving AI sector.
See More
SpaceX Faces Market Cap Fluctuations and Challenges Post-IPO
- Market Cap Fluctuations: Since its IPO on June 12, SpaceX briefly surpassed Microsoft and Amazon in market capitalization, but has since fallen 18% from its intraday high, indicating market concerns about its profitability prospects.
- Operational Losses: The company reported an operational loss of $2.59 billion in 2025 and a further loss of $1.94 billion for Q1 2026, yet some investors remain optimistic about its growth potential, particularly from the expansion of its Starlink network.
- Light Pollution Challenges: By the end of 2025, SpaceX had launched 9,600 Starlink satellites, representing 75% of active maneuverable satellites, but increasing light pollution poses significant challenges for future AI satellite deployments.
- Future Goals: SpaceX aims to achieve an annualized orbital AI compute capacity of 1 terawatt by 2030, despite facing challenges related to light pollution and energy bottlenecks, necessitating close attention to how it addresses these issues for sustained long-term growth.
See More
SpaceX Faces Light Pollution Challenge
- Operational Losses: SpaceX reported an operational loss of $2.59 billion in 2025 and a further loss of $1.94 billion for Q1 2026, despite attracting some investors due to the long-term growth potential of its Starlink network and AI compute satellites.
- Satellite Count and Challenges: As of March 31, 2026, SpaceX had 9,600 Starlink satellites in low Earth orbit, representing 75% of active maneuverable satellites at that time, but the increasing light pollution poses significant challenges for astronomical observations.
- AI Satellite Deployment Plans: SpaceX aims to achieve an annualized AI compute capacity of 1 GW by the end of 2027, scaling up to 1 TW by 2030; however, the use of sun-synchronous orbit for AI satellites could exacerbate light pollution issues, affecting nighttime visibility.
- Investor Attention Recommendation: While SpaceX's role in the commercial space launch industry and AI technology potential is promising, investors should closely monitor how the company addresses light pollution challenges to ensure sustainable long-term growth.
See More
SpaceX Raises $86 Billion in Successful IPO, Fuels Growth Potential
- Successful IPO Funding: SpaceX raised nearly $86 billion in its IPO, surpassing its initial target of $75 billion, with these funds earmarked for capital-intensive growth initiatives, thereby accelerating the company's expansion in aerospace and artificial intelligence sectors.
- Market Capitalization Boost: With a market cap now exceeding $2 trillion, SpaceX is expected to raise additional capital in the future, creating more business opportunities for its suppliers, particularly as resource sharing with Tesla enhances both companies' market positions.
- Focus on AI Investment: SpaceX claims a total addressable market of $28.5 trillion, with over 90% related to artificial intelligence, indicating a significant increase in spending on AI initiatives to drive advancements in autonomous driving technology, thereby enhancing its competitive edge in future markets.
- Tesla's Strategic Dependence: Tesla's $2 billion investment in xAI and its merger with SpaceX highlight its reliance on SpaceX for autonomous driving capabilities, ensuring that it leverages SpaceX's AI investments to achieve its self-driving goals and maintain a competitive advantage in the emerging robotaxi market.
See More
Analysis of Ethereum's Upgrade Prospects
- Market Correction Impact: Ethereum (ETH) has declined over 40% this year, primarily due to inflation and interest rate hike fears leading investors to sell, reflecting weakened confidence in the cryptocurrency market that may affect future investment inflows.
- 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.
- Macroeconomic Environment Impact: Although future technological upgrades may enhance Ethereum's competitiveness, current economic conditions and investor concerns about interest rate hikes could suppress Ethereum's price rebound, leading to diminished confidence in smaller altcoins.
See More
Analysis of SpaceX Stock Volatility Post-IPO
- IPO Performance and Market Reaction: SpaceX went public on June 12 at $135 per share, marking the largest IPO in history, with the stock surging 50% within three days, briefly pushing its market cap to nearly $3 trillion; however, following the Cursor acquisition announcement, the stock price quickly declined, indicating market concerns over its valuation.
- Acquisition Deal Impact: The announcement of SpaceX's $60 billion acquisition of AI company Anysphere raised dilution concerns, leading Morningstar to lower its fair value estimate to $62, reflecting investor skepticism about future profitability amidst a 3.4% dilution of its IPO valuation.
- Financial Status and Profitability: SpaceX reported $18.7 billion in revenue for 2025, a 33% year-over-year increase, but posted a net loss of $4.9 billion, highlighting ongoing profitability pressures, particularly with the AI segment losing $6.4 billion, exacerbating market fears about its future.
- Debt Financing Needs: SpaceX is preparing to issue at least $20 billion in bonds to refinance a $20 billion bridge loan maturing in September 2027, indicating urgent capital needs, while a $30 billion cloud services contract with Google provides some revenue visibility for the future.
See More
MGX Explores Acquisition of Singapore Data Center Operator DayOne
- Acquisition Exploration: Abu Dhabi-backed AI investor MGX is considering acquiring Singapore-based data center operator DayOne, marking a significant step in its global technology expansion, with MGX working with an investment bank to prepare for the potential transaction.
- 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.
- Regional Expansion: If the deal proceeds, it would represent MGX's first acquisition in Asia, as the firm, established just over two years ago, aims to invest over $100 billion in assets across the entire AI chain, including data centers and the powerful chips that support them.
- Investment Background: MGX has invested in some of the largest AI companies globally, including SpaceX's xAI and OpenAI, and has committed $30 billion to an AI infrastructure fund that includes investments in Aligned Data Centers, showcasing its strong financial backing in the rapidly evolving AI sector.
See More
SpaceX Faces Market Cap Fluctuations and Challenges Post-IPO
- Market Cap Fluctuations: Since its IPO on June 12, SpaceX briefly surpassed Microsoft and Amazon in market capitalization, but has since fallen 18% from its intraday high, indicating market concerns about its profitability prospects.
- Operational Losses: The company reported an operational loss of $2.59 billion in 2025 and a further loss of $1.94 billion for Q1 2026, yet some investors remain optimistic about its growth potential, particularly from the expansion of its Starlink network.
- Light Pollution Challenges: By the end of 2025, SpaceX had launched 9,600 Starlink satellites, representing 75% of active maneuverable satellites, but increasing light pollution poses significant challenges for future AI satellite deployments.
- Future Goals: SpaceX aims to achieve an annualized orbital AI compute capacity of 1 terawatt by 2030, despite facing challenges related to light pollution and energy bottlenecks, necessitating close attention to how it addresses these issues for sustained long-term growth.
See More
SpaceX Faces Light Pollution Challenge
- Operational Losses: SpaceX reported an operational loss of $2.59 billion in 2025 and a further loss of $1.94 billion for Q1 2026, despite attracting some investors due to the long-term growth potential of its Starlink network and AI compute satellites.
- Satellite Count and Challenges: As of March 31, 2026, SpaceX had 9,600 Starlink satellites in low Earth orbit, representing 75% of active maneuverable satellites at that time, but the increasing light pollution poses significant challenges for astronomical observations.
- AI Satellite Deployment Plans: SpaceX aims to achieve an annualized AI compute capacity of 1 GW by the end of 2027, scaling up to 1 TW by 2030; however, the use of sun-synchronous orbit for AI satellites could exacerbate light pollution issues, affecting nighttime visibility.
- Investor Attention Recommendation: While SpaceX's role in the commercial space launch industry and AI technology potential is promising, investors should closely monitor how the company addresses light pollution challenges to ensure sustainable long-term growth.
See More
SpaceX Raises $86 Billion in Successful IPO, Fuels Growth Potential
- Successful IPO Funding: SpaceX raised nearly $86 billion in its IPO, surpassing its initial target of $75 billion, with these funds earmarked for capital-intensive growth initiatives, thereby accelerating the company's expansion in aerospace and artificial intelligence sectors.
- Market Capitalization Boost: With a market cap now exceeding $2 trillion, SpaceX is expected to raise additional capital in the future, creating more business opportunities for its suppliers, particularly as resource sharing with Tesla enhances both companies' market positions.
- Focus on AI Investment: SpaceX claims a total addressable market of $28.5 trillion, with over 90% related to artificial intelligence, indicating a significant increase in spending on AI initiatives to drive advancements in autonomous driving technology, thereby enhancing its competitive edge in future markets.
- Tesla's Strategic Dependence: Tesla's $2 billion investment in xAI and its merger with SpaceX highlight its reliance on SpaceX for autonomous driving capabilities, ensuring that it leverages SpaceX's AI investments to achieve its self-driving goals and maintain a competitive advantage in the emerging robotaxi market.
See More
Analysis of Ethereum's Upgrade Prospects
- Market Correction Impact: Ethereum (ETH) has declined over 40% this year, primarily due to inflation and interest rate hike fears leading investors to sell, reflecting weakened confidence in the cryptocurrency market that may affect future investment inflows.
- 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.
- Macroeconomic Environment Impact: Although future technological upgrades may enhance Ethereum's competitiveness, current economic conditions and investor concerns about interest rate hikes could suppress Ethereum's price rebound, leading to diminished confidence in smaller altcoins.
See More
