Cramer Warns SpaceX IPO Could Spawn $5 Trillion Bubble as June Listing Nears
Updated
Updated · CNBC · May 15
Cramer Warns SpaceX IPO Could Spawn $5 Trillion Bubble as June Listing Nears
1 articles · Updated · CNBC · May 15
$1.75 trillion to $2 trillion is the valuation range media reports have floated for SpaceX, and Jim Cramer said a thin public float could drive the stock toward $5 trillion and become “destructive” for the market.
June is the expected timing for the IPO, with a prospectus possible next week, and Cramer said the blockbuster debut of AI chipmaker Cerebras showed how intense demand for Elon Musk-linked offerings can become.
Underwriters are the key variable, he said, warning that engineering a huge first-day pop with too few shares would detach the stock from fundamentals and recreate dot-com-era excess.
A successful frenzy around SpaceX could set a template for OpenAI, Anthropic and other large tech listings, while a wave of giant IPOs could pressure the broader market as investors sell existing holdings to fund new buys.
With insiders poised for an early exit, is the SpaceX IPO more of a cash-out for the few than an investment for the many?
Is SpaceX's pivot to AI a visionary leap or a gamble to justify a valuation its core space business cannot support?
Are exchanges bending rules for SpaceX, forcing a high-risk stock onto millions of everyday investors through index funds?
SpaceX’s Record-Breaking $2 Trillion IPO: Starlink, AI, and the Future of the Muskonomy
Overview
SpaceX is preparing for a record-breaking IPO, targeting June 2026, after confidentially filing with the SEC in April 2026. The SEC will privately review SpaceX’s financials before the company releases its official prospectus. SpaceX, already the world’s most valuable startup, is aiming for a valuation over $2 trillion, which could make this the largest market debut in history. This ambitious target follows SpaceX’s merger with Elon Musk’s xAI in February 2026, which valued the combined entity at $1.25 trillion. The IPO is set to reshape the market and attract massive investor interest.