History Offers a $974 Billion Warning Ahead of the Game-Changing SpaceX IPO
Written by Sean Williams for The Motley Fool -> Space economy and artificial intelligence conglomerate SpaceX will go public tomorrow, June 12, at $135 per share. Structural changes, including fast entry into several major stock indexes, could propel SpaceX stock for several we
Space economy and artificial intelligence conglomerate SpaceX will go public tomorrow, June 12, at $135 per share.
Structural changes, including fast entry into several major stock indexes, could propel SpaceX stock for several weeks after its initial public offering (IPO).
However, IPO euphoria fades, leading most mega-IPOs to tumble in their first year.
Tomorrow promises to be a historic day for Wall Street. The Dow Jones Industrial Average (DJINDICES: ^DJI) , S&P 500 (SNPINDEX: ^GSPC) , Nasdaq Composite (NASDAQINDEX: ^IXIC) , and Nasdaq-100 have been wildly vacillating ahead of the SpaceX initial public offering (IPO) on June 12.
Elon Musk's space and artificial intelligence conglomerate is selling roughly 555.6 million shares at $135 each, raising a record-shattering $75 billion and valuing the company at approximately $1.77 trillion. SpaceX should slot in as the eighth-largest publicly traded company, ahead of Meta Platforms and Musk's other trillion-dollar company, Tesla .
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While buzz ahead of this debut is off the charts, history offers an unmistakable warning that could cost retail investors dearly if ignored .
Certain structural dynamics of the SpaceX IPO afford it a decent chance of rocketing out of the starting gate. For instance, Nasdaq (NASDAQ: NDAQ) Global Indexes amended its Nasdaq-100 inclusion methodology (effective May 1) to fast-track SpaceX's entry into the index after 15 trading days, as opposed to the typical wait time of around three months. Low-float requirements were also waived.
