SpaceX to Go Public on June 12, Setting Record for Largest IPO
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 2 days ago
0mins
Source: Fool
- 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.
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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: 62.930
Low
62.00
Averages
66.82
High
84.00
Current: 62.930
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.
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- 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.
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- 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.
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- 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
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- 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
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See More
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- 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
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- 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
Market Outlook for Mondelēz and General Mills
- Cocoa Price Decline: Mondelēz International has seen cocoa prices drop over 50% by early 2026, alleviating previous margin pressures caused by soaring cocoa prices, which is expected to drive future revenue growth despite the current stock price being significantly lower than two years ago.
- Stable Cash Flow: Mondelēz projects organic net revenue growth between flat and 2% for 2026, alongside a plan to achieve over $3 billion in free cash flow, demonstrating the company's robust financial health despite commodity cycle fluctuations.
- Pet Food Growth: General Mills has entered the pet food market through its acquisition of Blue Buffalo and launched a fresh pet food line in 2025, which is expected to enhance its share in the rapidly growing $3 billion market, even as overall volumes have been impacted by consumers shifting to private-label options.
- High Dividend Appeal: With a dividend yield approaching 7%, General Mills presents a historical buying opportunity, and combined with its stable income stream and strong brand loyalty, it has attracted the attention of long-term investors.
See More
Consumer Staples Sector Faces Challenges and Opportunities
- Market Environment Shift: The consumer staples sector has been impacted by high input costs and cautious consumers, leading to significant stock price declines for many recognizable brands, creating rare discounted entry points, especially amid a market rotation towards technology and artificial intelligence.
- Mondelēz International Performance: Mondelēz International (MDLZ) operates in over 150 countries, with 40% of its revenue coming from emerging markets that have grown at a compound annual rate of 13.4%; despite a 14% decline in adjusted EPS in 2025 due to surging cocoa prices, the company projects a 2% organic net revenue growth for 2026 and free cash flow exceeding $3 billion.
- General Mills' Stability: General Mills (GIS) generates over $18 billion in annual revenue, and although its stock is down 40% from its 52-week high, its consistent dividend payments and growth potential in the pet food sector, particularly with the Blue Buffalo brand acquisition, demonstrate resilience in economic cycles.
- Investment Opportunity: With General Mills' dividend yield approaching 7%, a level historically associated with buying opportunities, combined with strong brand loyalty and growth in the pet food market, investors may consider gradually building positions during this downturn.
See More
