BMO Urges Rotation Before SpaceX IPO as $9 Billion-Raised Giant Draws Cash From Tech Winners
Updated
Updated · 24/7 Wall St. · Jun 10
BMO Urges Rotation Before SpaceX IPO as $9 Billion-Raised Giant Draws Cash From Tech Winners
3 articles · Updated · 24/7 Wall St. · Jun 10
Summary
Friday’s SpaceX IPO could trigger investors to sell some of this year’s biggest tech winners and raise cash, BMO strategist Carol Schleif said, arguing the deal will force a broader market repositioning.
Nearly 30% gains in the Nasdaq since April and roughly 50% in chip stocks have left AI-linked trades crowded and vulnerable to profit-taking, even with the VIX at a still-manageable 19.87.
SpaceX’s filing showed more than $9 billion raised since 2002, $4.423 billion in 2025 operating income from connectivity, and an AI arm added through its February 2026 xAI acquisition.
11 S&P sectors posted revenue growth this earnings season, Schleif said, with aggregate sales up 11% and profit growth near 28%-29%, reinforcing her view that leadership is spreading beyond mega-cap tech.
6.38% gains in the equal-weight S&P 500 ETF and 9.08% in the Russell 2000 ETF since April 10 suggest investors are already broadening bets as markets refocus on inflation, the Fed and earnings.
With SpaceX's IPO drawing massive capital, is the great AI stock rally finally over?
How will Nasdaq's new rules for the SpaceX IPO ignite volatility across the entire tech market?
Is SpaceX's IPO a historic opportunity or a financially engineered trap for retail investors?
SpaceX’s $1.75 Trillion IPO: How Small Float, Lockups, and Index Exclusion Are Reshaping the Market
Overview
SpaceX’s IPO is navigating a complex landscape shaped by a very small public float, extended lockup periods for insiders, and a delayed entry into major indices like the S&P 500. These structural factors—such as only about 5% of shares being available to the public and Elon Musk’s significant insider control—are causing heightened price volatility and constrained liquidity. As a result, the stock’s long-term market impact is uncertain, with investors closely watching how these unique dynamics will influence trading, index inclusion, and the broader market in this new era of mega-cap IPOs.