SpaceX Could Hit $5 Trillion on IPO Day as $75 Billion Deal Drains Cash From Big Tech
Updated
Updated · The Motley Fool · Jun 6
SpaceX Could Hit $5 Trillion on IPO Day as $75 Billion Deal Drains Cash From Big Tech
3 articles · Updated · The Motley Fool · Jun 6
Summary
$135-a-share SpaceX stock could surge from a $1.77 trillion IPO valuation to $5 trillion on its Nasdaq debut June 12, Jim Cramer said, implying roughly 180% upside.
$75 billion in expected proceeds and a float of just 4.2% of shares outstanding could intensify the jump, with institutional cash at 3.9% and wealthy investors holding less than 10% in cash.
Amazon, Microsoft and Nvidia could face selling pressure as investors raise money for the offering, creating a potential drag on the S&P 500 because those stocks make up nearly 17% of the index.
SpaceX may struggle after the initial frenzy: its IPO values the company at about 92 times sales on $19.3 billion of trailing revenue, versus Palantir's 65 times sales.
As lockups expire over 180 days and more shares hit the market, Morningstar's $780 billion fair-value estimate and Barron's data on top IPO laggards point to likely long-term underperformance versus the S&P 500.
Is SpaceX's historic IPO a visionary bet on the future or the ultimate sign of a market bubble?
Can Starlink's profits justify the massive valuation while the new xAI division burns through billions?
Inside SpaceX’s $1.75 Trillion IPO: AI Ambitions, Bitcoin Holdings, and Market Shockwaves
Overview
The SpaceX IPO, launched in June 2026, stands out as a landmark event and the first major test for public markets after a quiet period for new listings. Elon Musk’s unique approach—structuring the IPO so all raised capital directly funds SpaceX’s growth, especially in AI and satellite networks—signals a bold strategy that could shape how future tech and AI companies go public. Investors are watching closely, as Musk must hold his shares for over a year, and the IPO’s outcome is expected to influence both the space and AI sectors, setting the tone for upcoming high-profile offerings.