SpaceX Sets Record for Largest IPO in History
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 4 days ago
0mins
Source: NASDAQ.COM
- IPO Pricing and Valuation: SpaceX's IPO is priced at $135 per share, leading to an initial market capitalization of $1.77 trillion, marking the largest IPO in history; however, this valuation results in a price-to-sales ratio of 92, indicating significant downside risk given its $19.3 billion in annual revenue.
- Strong Market Demand: The IPO has seen exceptionally strong demand, with investment banks reporting that SpaceX's stock is four times oversubscribed, reflecting high market expectations for future growth, yet historical trends show that large IPOs often perform poorly in their first year.
- Integrated Business Model: SpaceX's unique vertical integration combines launch, connectivity, and computing technologies, positioning it to capture a significant share of the $28.5 trillion market, particularly in AI infrastructure and Starlink satellite internet services.
- Historical Performance Warning: Despite the hype surrounding SpaceX's IPO, historical data indicates that the ten largest IPO stocks have averaged a 21% decline in their first year, and their long-term returns typically lag behind the S&P 500, suggesting investors should proceed with caution.
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Analyst Views on MDLZ
Wall Street analysts forecast MDLZ stock price to rise
18 Analyst Rating
13 Buy
5 Hold
0 Sell
Moderate Buy
Current: 63.360
Low
62.00
Averages
66.82
High
84.00
Current: 63.360
Low
62.00
Averages
66.82
High
84.00
About MDLZ
Mondelez International, Inc. is a snack company. The Company’s core business is making and selling chocolate, biscuits and baked snacks. The Company also has additional businesses in adjacent, locally relevant categories including gum and candy, cheese and grocery and powdered beverages. Its portfolio includes global and local brands such as Oreo, Ritz, LU, Clif Bar and Tate’s Bake Shop biscuits and baked snacks, as well as Cadbury Dairy Milk, Milka and Toblerone chocolate. The Company’s segments include Latin America, AMEA, Europe and North America. It sells its products in over 150 countries and has operations in approximately 80 countries, including 147 principal manufacturing and processing facilities across 46 countries. It sells its products to supermarket chains, wholesalers, supercenters, club stores, mass merchandisers, distributors, convenience stores, gasoline stations, drug stores, value stores and other retail food outlets.
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.
SpaceX Sets Record with $75 Billion IPO, Valued at $1.77 Trillion
- Record Financing: SpaceX is set to conduct its IPO on June 12, aiming to raise up to $75 billion with a valuation of $1.77 trillion, marking the largest IPO in history, although this high valuation poses downside risks.
- Oversubscription Details: The IPO shares are priced at $135 each, with demand exceeding the available shares by a factor of four, indicating strong investor interest in SpaceX, but this could lead to price volatility in the short term.
- Market Performance Expectations: Historical data shows that IPO stocks have averaged a 25% gain on their first trading day over the past decade, but large IPOs typically experience significant declines in their first year, and SpaceX may face a similar fate.
- Competitive Market Analysis: SpaceX's P/S ratio stands at 92, significantly higher than Palantir's 63, indicating an extremely high valuation, and large IPO stocks have historically underperformed, suggesting a potential sharp decline in the following year.
See More
SpaceX Sets Record for Largest IPO in History
- IPO Pricing and Valuation: SpaceX's IPO is priced at $135 per share, leading to an initial market capitalization of $1.77 trillion, marking the largest IPO in history; however, this valuation results in a price-to-sales ratio of 92, indicating significant downside risk given its $19.3 billion in annual revenue.
- Strong Market Demand: The IPO has seen exceptionally strong demand, with investment banks reporting that SpaceX's stock is four times oversubscribed, reflecting high market expectations for future growth, yet historical trends show that large IPOs often perform poorly in their first year.
- Integrated Business Model: SpaceX's unique vertical integration combines launch, connectivity, and computing technologies, positioning it to capture a significant share of the $28.5 trillion market, particularly in AI infrastructure and Starlink satellite internet services.
- Historical Performance Warning: Despite the hype surrounding SpaceX's IPO, historical data indicates that the ten largest IPO stocks have averaged a 21% decline in their first year, and their long-term returns typically lag behind the S&P 500, suggesting investors should proceed with caution.
See More
Philipp Navratil Aims to Revitalize 160-Year-Old Food Giant
- Core Brand Focus: Philipp Navratil plans to restart growth in the 160-year-old food giant by concentrating on core brands like KitKat, Fancy Feast, and Nespresso, aiming to enhance brand value and market share.
- Strategic Growth Adjustment: The new strategy will emphasize the core competencies of these brands, with expectations to boost sales through optimized product portfolios and marketing strategies that enhance consumer loyalty.
- Market Responsiveness Improvement: By refocusing on core brands, Navratil hopes to respond more swiftly to market changes and meet the increasingly diverse demands of consumers, thereby enhancing the company's competitive position.
- Long-Term Development Vision: This initiative is not only aimed at improving short-term performance but also at achieving sustainable growth over the coming years, ensuring the company remains a leader in the rapidly evolving food industry.
See More
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- Product Launch: SOUR PATCH KIDS introduces BESTIES candy, featuring four candies linked hand-in-hand to spark real-life social connections, aligning with Gen Z's emphasis on friendship.
- Market Positioning: This product combines the brand's signature sour then sweet taste with an interactive experience, specifically designed for Gen Z, highlighting the importance of sharing and connection among friends to meet young consumers' needs.
- Product Specs and Pricing: BESTIES candy is available in 3.18 oz and 7.17 oz bags, with suggested retail prices of $1.25 and $3.29 respectively, expected to attract a broad consumer base.
- Brand Strategy: Lauryn McDonough, Senior Director at Mondelēz International, states that this product is not just candy but a celebration of friendship, aiming to enhance emotional connections between the brand and consumers through sharing and experiences.
See More
SpaceX Set to Launch Largest IPO in History
- Record IPO Valuation: SpaceX's IPO is priced at $135 per share, leading to an expected market capitalization of $1.77 trillion, marking the largest IPO in history; however, its valuation exceeds 90 times sales, indicating significant overvaluation risks.
- Historical Performance Warning: Historical data shows that the 10 largest U.S. IPO stocks have underperformed the S&P 500 by 96 percentage points since their listings, suggesting that investors might be better off investing in an S&P 500 index fund rather than participating in SpaceX's IPO.
- Strong Market Demand: While investment banks report immense demand for SpaceX's IPO, Morningstar analysts estimate its fair value at only $780 billion, implying a 56% downside from the IPO valuation of $1.77 trillion, necessitating caution among investors.
- Investor Strategy Recommendation: Although SpaceX's IPO may initially perform well, historical trends indicate it may underperform the S&P 500 in the long run, prompting a recommendation for investors to consider the Vanguard S&P 500 ETF for more stable returns.
See More
SpaceX to Go Public on June 12, Setting Record for Largest IPO
- IPO Pricing and Valuation: SpaceX has priced its IPO at $135 per share, leading to an initial market capitalization of $1.77 trillion, making it the largest IPO on record, although its valuation at 92 times sales indicates significant overvaluation risks.
- Market Demand and Performance Outlook: Underwriters report immense demand for SpaceX shares, yet historical data suggests the company may underperform the S&P 500 in the long run, indicating that investors might be better off investing in an S&P 500 index fund instead.
- Historical Performance Comparison: Data shows that over 1,100 companies listed since 2016 have averaged a 25% increase on their first trading day, but larger IPOs often face selling pressure as lock-up periods expire, a trend SpaceX may also experience.
- Investment Advice and Risks: While SpaceX's market value could potentially soar to $5 trillion post-IPO, Morningstar analysts estimate its fair value at $780 billion, suggesting a 56% downside from its IPO valuation, advising investors to remain cautious.
See More
SpaceX Sets Record with $75 Billion IPO, Valued at $1.77 Trillion
- Record Financing: SpaceX is set to conduct its IPO on June 12, aiming to raise up to $75 billion with a valuation of $1.77 trillion, marking the largest IPO in history, although this high valuation poses downside risks.
- Oversubscription Details: The IPO shares are priced at $135 each, with demand exceeding the available shares by a factor of four, indicating strong investor interest in SpaceX, but this could lead to price volatility in the short term.
- Market Performance Expectations: Historical data shows that IPO stocks have averaged a 25% gain on their first trading day over the past decade, but large IPOs typically experience significant declines in their first year, and SpaceX may face a similar fate.
- Competitive Market Analysis: SpaceX's P/S ratio stands at 92, significantly higher than Palantir's 63, indicating an extremely high valuation, and large IPO stocks have historically underperformed, suggesting a potential sharp decline in the following year.
See More
SpaceX Sets Record for Largest IPO in History
- IPO Pricing and Valuation: SpaceX's IPO is priced at $135 per share, leading to an initial market capitalization of $1.77 trillion, marking the largest IPO in history; however, this valuation results in a price-to-sales ratio of 92, indicating significant downside risk given its $19.3 billion in annual revenue.
- Strong Market Demand: The IPO has seen exceptionally strong demand, with investment banks reporting that SpaceX's stock is four times oversubscribed, reflecting high market expectations for future growth, yet historical trends show that large IPOs often perform poorly in their first year.
- Integrated Business Model: SpaceX's unique vertical integration combines launch, connectivity, and computing technologies, positioning it to capture a significant share of the $28.5 trillion market, particularly in AI infrastructure and Starlink satellite internet services.
- Historical Performance Warning: Despite the hype surrounding SpaceX's IPO, historical data indicates that the ten largest IPO stocks have averaged a 21% decline in their first year, and their long-term returns typically lag behind the S&P 500, suggesting investors should proceed with caution.
See More
Philipp Navratil Aims to Revitalize 160-Year-Old Food Giant
- Core Brand Focus: Philipp Navratil plans to restart growth in the 160-year-old food giant by concentrating on core brands like KitKat, Fancy Feast, and Nespresso, aiming to enhance brand value and market share.
- Strategic Growth Adjustment: The new strategy will emphasize the core competencies of these brands, with expectations to boost sales through optimized product portfolios and marketing strategies that enhance consumer loyalty.
- Market Responsiveness Improvement: By refocusing on core brands, Navratil hopes to respond more swiftly to market changes and meet the increasingly diverse demands of consumers, thereby enhancing the company's competitive position.
- Long-Term Development Vision: This initiative is not only aimed at improving short-term performance but also at achieving sustainable growth over the coming years, ensuring the company remains a leader in the rapidly evolving food industry.
See More
SOUR PATCH KIDS Launches New BESTIES Candy Format
- Product Launch: SOUR PATCH KIDS introduces BESTIES candy, featuring four candies linked hand-in-hand to spark real-life social connections, aligning with Gen Z's emphasis on friendship.
- Market Positioning: This product combines the brand's signature sour then sweet taste with an interactive experience, specifically designed for Gen Z, highlighting the importance of sharing and connection among friends to meet young consumers' needs.
- Product Specs and Pricing: BESTIES candy is available in 3.18 oz and 7.17 oz bags, with suggested retail prices of $1.25 and $3.29 respectively, expected to attract a broad consumer base.
- Brand Strategy: Lauryn McDonough, Senior Director at Mondelēz International, states that this product is not just candy but a celebration of friendship, aiming to enhance emotional connections between the brand and consumers through sharing and experiences.
See More
SpaceX Set to Launch Largest IPO in History
- Record IPO Valuation: SpaceX's IPO is priced at $135 per share, leading to an expected market capitalization of $1.77 trillion, marking the largest IPO in history; however, its valuation exceeds 90 times sales, indicating significant overvaluation risks.
- Historical Performance Warning: Historical data shows that the 10 largest U.S. IPO stocks have underperformed the S&P 500 by 96 percentage points since their listings, suggesting that investors might be better off investing in an S&P 500 index fund rather than participating in SpaceX's IPO.
- Strong Market Demand: While investment banks report immense demand for SpaceX's IPO, Morningstar analysts estimate its fair value at only $780 billion, implying a 56% downside from the IPO valuation of $1.77 trillion, necessitating caution among investors.
- Investor Strategy Recommendation: Although SpaceX's IPO may initially perform well, historical trends indicate it may underperform the S&P 500 in the long run, prompting a recommendation for investors to consider the Vanguard S&P 500 ETF for more stable returns.
See More
SpaceX to Go Public on June 12, Setting Record for Largest IPO
- IPO Pricing and Valuation: SpaceX has priced its IPO at $135 per share, leading to an initial market capitalization of $1.77 trillion, making it the largest IPO on record, although its valuation at 92 times sales indicates significant overvaluation risks.
- Market Demand and Performance Outlook: Underwriters report immense demand for SpaceX shares, yet historical data suggests the company may underperform the S&P 500 in the long run, indicating that investors might be better off investing in an S&P 500 index fund instead.
- Historical Performance Comparison: Data shows that over 1,100 companies listed since 2016 have averaged a 25% increase on their first trading day, but larger IPOs often face selling pressure as lock-up periods expire, a trend SpaceX may also experience.
- Investment Advice and Risks: While SpaceX's market value could potentially soar to $5 trillion post-IPO, Morningstar analysts estimate its fair value at $780 billion, suggesting a 56% downside from its IPO valuation, advising investors to remain cautious.
See More
