Tom Lee Dismisses SpaceX IPO Top Fears, Citing $7 Trillion in Sideline Cash
Updated
Updated · CNBC · Jun 8
Tom Lee Dismisses SpaceX IPO Top Fears, Citing $7 Trillion in Sideline Cash
3 articles · Updated · CNBC · Jun 8
Summary
$7 trillion in sideline cash should let markets absorb SpaceX's Friday IPO, Tom Lee said, rejecting client fears that the listing will mark the top of the AI-driven rally.
Friday's more than 4% Nasdaq drop fueled concern that investors were dumping chip stocks to raise cash for the deal, though the index rebounded 1.25% in midday Monday trading.
Lee still expects volatility into the debut, but said wealthy investors have ample cash and that the broader market should hold up after the IPO.
1999-style lockup fears are also misplaced, he argued, because AI companies including SpaceX are not fully funded and will want to preserve access to public capital over the next five years.