SpaceX IPO Demand Expected to Exceed Supply
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 hour ago
0mins
Source: stocktwits
- Strong First-Day Performance Expected: Gary Black anticipates that SpaceX's IPO price of $135 will see demand exceed supply, with backing from major Wall Street banks likely to drive a strong trading debut, although historical data shows mixed performance post-first-day surges.
- Role of Investment Banks: Black notes that the involvement of major investment banks typically stimulates institutional demand, and underwriters are likely to 'engineer a Day 1 pop,' creating conditions for a robust performance once trading begins, enticing investors to participate.
- Impact of IPO Restrictions: Due to U.S. restrictions on sensitive technology, underwriters have been instructed not to accept orders from investors in Hong Kong and mainland China, which may affect participation from these markets and add complexity to the IPO process.
- Optimistic Growth Forecasts: Morgan Stanley projects that SpaceX's revenue could grow from $18.7 billion in 2025 to $3.4 trillion by 2040, despite the company reporting a net loss of $4.9 billion in 2025, indicating strong market confidence in its future growth potential.
Trade with 70% Backtested Accuracy
Stop guessing "Should I Buy GS?" and start using high-conviction signals backed by rigorous historical data.
Sign up today to access powerful investing tools and make smarter, data-driven decisions.
Analyst Views on GS
Wall Street analysts forecast GS stock price to fall
12 Analyst Rating
5 Buy
7 Hold
0 Sell
Moderate Buy
Current: 1092.610
Low
604.00
Averages
951.45
High
1100
Current: 1092.610
Low
604.00
Averages
951.45
High
1100
About GS
The Goldman Sachs Group, Inc. is a global financial institution that delivers a range of financial services to a large and diversified client base that includes corporations, financial institutions, governments and individuals. Its segments include Global Banking & Markets, Asset & Wealth Management and Platform Solutions. The Global Banking & Markets segment offers a range of services, including financing, advisory services, risk distribution, and hedging for its institutional and corporate clients. It facilitates client transactions and makes markets in fixed income, equity, currency and commodity products. The Asset & Wealth Management segment manages assets and offers investment products across all asset classes to a diverse set of clients. It also provides investing and wealth advisory solutions. The Platform Solutions segment includes consumer platforms, such as partnerships offering credit cards and point-of-sale financing, and transaction banking and other platform businesses.
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.
Declining CD Rates: Lock in Competitive Returns Now
- Current CD Rates: Short-term CDs (6 to 12 months) currently offer rates between 4% and 4.5% APY, which, despite an overall decline, remain attractive compared to traditional savings accounts, indicating a continued interest in CDs.
- Historical Rate Trends: Since 2009, average CD rates have significantly declined, particularly after the 2008 financial crisis when five-year CDs fell below 2% APY, reflecting the impact of economic slowdowns on interest rates.
- Fed Policy Impact: Between 2022 and 2023, the Fed raised rates 11 times, which boosted CD rates; however, with rate cuts starting in 2024, current CD rates still remain high by historical standards, reflecting market uncertainty about future economic conditions.
- Factors for Choosing CDs: When selecting a CD, it’s essential to consider not only the high APY but also the term length, type of financial institution, and account terms to align with personal financial goals and avoid penalties for early withdrawal.
See More
SpaceX IPO Demand Expected to Exceed Supply
- Strong First-Day Performance Expected: Gary Black anticipates that SpaceX's IPO price of $135 will see demand exceed supply, with backing from major Wall Street banks likely to drive a strong trading debut, although historical data shows mixed performance post-first-day surges.
- Role of Investment Banks: Black notes that the involvement of major investment banks typically stimulates institutional demand, and underwriters are likely to 'engineer a Day 1 pop,' creating conditions for a robust performance once trading begins, enticing investors to participate.
- Impact of IPO Restrictions: Due to U.S. restrictions on sensitive technology, underwriters have been instructed not to accept orders from investors in Hong Kong and mainland China, which may affect participation from these markets and add complexity to the IPO process.
- Optimistic Growth Forecasts: Morgan Stanley projects that SpaceX's revenue could grow from $18.7 billion in 2025 to $3.4 trillion by 2040, despite the company reporting a net loss of $4.9 billion in 2025, indicating strong market confidence in its future growth potential.
See More
Strong Jobs Report Triggers Market Volatility
- Job Data Surprises: May's nonfarm payrolls rose by 172,000, significantly exceeding economists' expectations of 80,000, while the unemployment rate remained steady at 4.3%, indicating economic strength but increasing market anxiety over potential Federal Reserve interest rate hikes.
- Tech Stocks Decline: Semiconductor stocks led the market drop, with Nvidia and Broadcom down 5% and 5.5%, respectively, while Micron Technology and AMD fell over 9%, collectively erasing more than $500 billion in market capitalization, highlighting the vulnerability of high-growth tech valuations amid rising rate expectations.
- Dow Jones Divergence: Despite a 0.8% drop in the Dow Jones Industrial Average, 15 of its components rose, with Coca-Cola gaining 3.8% and contributing 18 points to the index, demonstrating the resilience of defensive stocks during market volatility.
- Oil and Crypto Fluctuations: Oil prices fell by 3%, and Bitcoin dropped 4.9% to $59,138, reflecting market concerns over uncertainty, particularly in light of the tense situation in the Strait of Hormuz, leading investors to adopt a cautious stance.
See More
US Nonfarm Payroll Growth Exceeds Expectations
- Strong Employment Data: May nonfarm payroll growth reached 172,000, significantly surpassing economists' expectations of 85,000, and while the unemployment rate held steady at 4.3%, this robust job growth may prompt the Federal Reserve to raise interest rates, impacting market sentiment.
- Negative Market Reaction: Despite the positive jobs report, the Nasdaq Composite index dropped nearly 3%, indicating investor concerns over potential rate hikes, particularly as tech stocks like Nvidia and Broadcom fell by 5% and 5.5%, respectively, leading to a total market capitalization loss exceeding $500 billion.
- SpaceX IPO Delay: SpaceX is set to launch its $1.75 trillion IPO on June 12, but due to a nearly $5 billion loss last year, it is unlikely to be included in the S&P 500 until at least 2027, which could affect its market liquidity and investor confidence.
- Defensive Investment Return: In light of the unexpectedly strong employment data, investors are shifting towards defensive sectors such as healthcare and consumer staples, reflecting a cautious market stance regarding future interest rate increases, even though the fundamentals of these sectors remain unchanged.
See More
Apple's WWDC Faces AI Strategy Test
- Critical AI Moment: Apple's upcoming WWDC represents a pivotal moment for Tim Cook as CEO, with analysts suggesting that the event is crucial for showcasing Apple's AI capabilities, particularly whether significant improvements to Siri can drive iPhone upgrades.
- Siri Feature Enhancements: The event is expected to unveil a more powerful version of Siri, featuring a standalone chatbot app, personal context, on-screen awareness, and multi-step command handling, which will directly impact developer confidence and user experience.
- Market Reaction Expectations: Despite Apple's stock nearing all-time highs, analysts caution that if Siri's upgrades do not significantly enhance user experience, it could negatively affect Apple's valuation, especially with a current P/E ratio of 36 times.
- Developer Support Challenges: Apple must address the issue of developer support for Siri, as sufficient third-party app integration is essential for Siri to be truly effective, yet developers may hesitate due to concerns over Apple's control, which could hinder the success of Apple's AI strategy.
See More
Apple's WWDC to Revamp Siri as Cook's Final Showcase
- Siri Revamp Initiative: Apple is expected to unveil a revamped Siri at WWDC, featuring a standalone chatbot app, personal context, and multi-step command capabilities, aimed at enhancing user experience and strengthening market competitiveness.
- Investor Expectations: Despite Apple's stock nearing record highs, analysts caution that even an upgraded Siri may not justify its current valuation, necessitating proof that it can drive iPhone upgrades.
- Developer Challenges: WWDC serves not only as a consumer AI showcase but also as a critical moment for Apple to convince developers to support Siri's platform strategy, addressing the dependency on developer support for App Intents.
- AI Investment Strategy: Apple has been relatively conservative in AI infrastructure investments, opting for a partnership with Google and utilizing Nvidia chips, which could expedite AI product launches, despite ongoing tensions with developers.
See More
Declining CD Rates: Lock in Competitive Returns Now
- Current CD Rates: Short-term CDs (6 to 12 months) currently offer rates between 4% and 4.5% APY, which, despite an overall decline, remain attractive compared to traditional savings accounts, indicating a continued interest in CDs.
- Historical Rate Trends: Since 2009, average CD rates have significantly declined, particularly after the 2008 financial crisis when five-year CDs fell below 2% APY, reflecting the impact of economic slowdowns on interest rates.
- Fed Policy Impact: Between 2022 and 2023, the Fed raised rates 11 times, which boosted CD rates; however, with rate cuts starting in 2024, current CD rates still remain high by historical standards, reflecting market uncertainty about future economic conditions.
- Factors for Choosing CDs: When selecting a CD, it’s essential to consider not only the high APY but also the term length, type of financial institution, and account terms to align with personal financial goals and avoid penalties for early withdrawal.
See More
SpaceX IPO Demand Expected to Exceed Supply
- Strong First-Day Performance Expected: Gary Black anticipates that SpaceX's IPO price of $135 will see demand exceed supply, with backing from major Wall Street banks likely to drive a strong trading debut, although historical data shows mixed performance post-first-day surges.
- Role of Investment Banks: Black notes that the involvement of major investment banks typically stimulates institutional demand, and underwriters are likely to 'engineer a Day 1 pop,' creating conditions for a robust performance once trading begins, enticing investors to participate.
- Impact of IPO Restrictions: Due to U.S. restrictions on sensitive technology, underwriters have been instructed not to accept orders from investors in Hong Kong and mainland China, which may affect participation from these markets and add complexity to the IPO process.
- Optimistic Growth Forecasts: Morgan Stanley projects that SpaceX's revenue could grow from $18.7 billion in 2025 to $3.4 trillion by 2040, despite the company reporting a net loss of $4.9 billion in 2025, indicating strong market confidence in its future growth potential.
See More
Strong Jobs Report Triggers Market Volatility
- Job Data Surprises: May's nonfarm payrolls rose by 172,000, significantly exceeding economists' expectations of 80,000, while the unemployment rate remained steady at 4.3%, indicating economic strength but increasing market anxiety over potential Federal Reserve interest rate hikes.
- Tech Stocks Decline: Semiconductor stocks led the market drop, with Nvidia and Broadcom down 5% and 5.5%, respectively, while Micron Technology and AMD fell over 9%, collectively erasing more than $500 billion in market capitalization, highlighting the vulnerability of high-growth tech valuations amid rising rate expectations.
- Dow Jones Divergence: Despite a 0.8% drop in the Dow Jones Industrial Average, 15 of its components rose, with Coca-Cola gaining 3.8% and contributing 18 points to the index, demonstrating the resilience of defensive stocks during market volatility.
- Oil and Crypto Fluctuations: Oil prices fell by 3%, and Bitcoin dropped 4.9% to $59,138, reflecting market concerns over uncertainty, particularly in light of the tense situation in the Strait of Hormuz, leading investors to adopt a cautious stance.
See More
US Nonfarm Payroll Growth Exceeds Expectations
- Strong Employment Data: May nonfarm payroll growth reached 172,000, significantly surpassing economists' expectations of 85,000, and while the unemployment rate held steady at 4.3%, this robust job growth may prompt the Federal Reserve to raise interest rates, impacting market sentiment.
- Negative Market Reaction: Despite the positive jobs report, the Nasdaq Composite index dropped nearly 3%, indicating investor concerns over potential rate hikes, particularly as tech stocks like Nvidia and Broadcom fell by 5% and 5.5%, respectively, leading to a total market capitalization loss exceeding $500 billion.
- SpaceX IPO Delay: SpaceX is set to launch its $1.75 trillion IPO on June 12, but due to a nearly $5 billion loss last year, it is unlikely to be included in the S&P 500 until at least 2027, which could affect its market liquidity and investor confidence.
- Defensive Investment Return: In light of the unexpectedly strong employment data, investors are shifting towards defensive sectors such as healthcare and consumer staples, reflecting a cautious market stance regarding future interest rate increases, even though the fundamentals of these sectors remain unchanged.
See More
Apple's WWDC Faces AI Strategy Test
- Critical AI Moment: Apple's upcoming WWDC represents a pivotal moment for Tim Cook as CEO, with analysts suggesting that the event is crucial for showcasing Apple's AI capabilities, particularly whether significant improvements to Siri can drive iPhone upgrades.
- Siri Feature Enhancements: The event is expected to unveil a more powerful version of Siri, featuring a standalone chatbot app, personal context, on-screen awareness, and multi-step command handling, which will directly impact developer confidence and user experience.
- Market Reaction Expectations: Despite Apple's stock nearing all-time highs, analysts caution that if Siri's upgrades do not significantly enhance user experience, it could negatively affect Apple's valuation, especially with a current P/E ratio of 36 times.
- Developer Support Challenges: Apple must address the issue of developer support for Siri, as sufficient third-party app integration is essential for Siri to be truly effective, yet developers may hesitate due to concerns over Apple's control, which could hinder the success of Apple's AI strategy.
See More
Apple's WWDC to Revamp Siri as Cook's Final Showcase
- Siri Revamp Initiative: Apple is expected to unveil a revamped Siri at WWDC, featuring a standalone chatbot app, personal context, and multi-step command capabilities, aimed at enhancing user experience and strengthening market competitiveness.
- Investor Expectations: Despite Apple's stock nearing record highs, analysts caution that even an upgraded Siri may not justify its current valuation, necessitating proof that it can drive iPhone upgrades.
- Developer Challenges: WWDC serves not only as a consumer AI showcase but also as a critical moment for Apple to convince developers to support Siri's platform strategy, addressing the dependency on developer support for App Intents.
- AI Investment Strategy: Apple has been relatively conservative in AI infrastructure investments, opting for a partnership with Google and utilizing Nvidia chips, which could expedite AI product launches, despite ongoing tensions with developers.
See More
