Most Top 50 IPOs Trail S&P 500 as SpaceX Seeks $1.75 Trillion Debut
Updated
Updated · Reuters · May 26
Most Top 50 IPOs Trail S&P 500 as SpaceX Seeks $1.75 Trillion Debut
10 articles · Updated · Reuters · May 26
Reuters found investors in the 50 highest-valued IPOs of the past five years gained an average 27%, versus 53% for the S&P 500 over the same periods.
That gap could matter for SpaceX, which filed to list as SPCX and may start trading as early as June 11 at a targeted $1.75 trillion valuation.
SpaceX's implied price-to-sales ratio would be nearly 100, far above Nvidia's 24, and the company lost nearly $5 billion last year—traits IPO researchers say often precede weaker long-run returns.
Retail buyers may get some IPO access through Robinhood and SoFi, but Reuters noted ordinary investors rarely obtain shares at the IPO price and first-day buyers typically fare even worse.
Recent blockbuster listings show the split outcome: Astera Labs is up more than 700% and Arm about 400%, while Rivian is down 82%, Didi about 74% and Figma 35% below its IPO price.
With a $1.75T valuation and huge losses, is the SpaceX IPO a visionary bet or a historic market bubble?
Can SpaceX's profitable Starlink business sustain its cash-burning, trillion-dollar AI ambitions?
SpaceX’s $1.75 Trillion IPO: Market Mania, Governance Risks, and the Next Frontier in Space and AI
Overview
SpaceX’s confidential IPO filing has sparked major attention in both the aerospace industry and financial markets, marking a pivotal moment as the company prepares to go public. The move initiated a regulatory review and highlights SpaceX’s ambition to join leading technology firms by targeting a Nasdaq listing and seeking early inclusion in the Nasdaq-100 index. This strategic choice reflects SpaceX’s desire for recognition among top growth companies, while the scale and anticipation of the IPO underscore its potential to redefine industry benchmarks and influence broader market sentiment.