Prediction: SpaceX Stock Will Hit This Price in July
Written by Jeremy Bowman for The Motley Fool -> IPOs typically underperform the market over the following year. High-profile IPOs like Meta Platforms and Uber have fallen shortly after going public. SpaceX is going public at a sky-high valuation. SpaceX is set to go public on
IPOs typically underperform the market over the following year.
High-profile IPOs like Meta Platforms and Uber have fallen shortly after going public.
SpaceX is set to go public on Friday, becoming the biggest IPO on record.
The space exploration, satellite internet, and AI company led by Elon Musk is expected to raise $75 billion in its public offering at a valuation of $1.75 trillion. The company has already set the listing price at $135 a share, bypassing the traditional price discovery process that helps ensure initial investors are paying a fair price.
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The offering is receiving an unusual level of support from big banks, as JPMorgan Chase and Bank of America have held events to sell the stock to both high-net-worth individuals and retail investors, and JPMorgan Chase CEO Jamie Dimon even hosted one such event.
So what will happen to SpaceX once it enters the public markets? Let's evaluate some of the near-term catalysts facing the stock.
SpaceX is going public at a time when the market is trading at a historically high valuation. The CAPE ratio is the second-highest it's been in history, now approaching dot-com levels, and a convulsion in the market since last Friday's jobs report has already sent tech stocks plunging.
