{"id":49684,"date":"2026-06-08T11:35:17","date_gmt":"2026-06-08T11:35:17","guid":{"rendered":"https:\/\/quickassetsmarket.com\/index.php\/2026\/06\/08\/buying-spacex-at-ipo-3-big-risks-smart-investors-are-watching\/"},"modified":"2026-06-08T11:35:17","modified_gmt":"2026-06-08T11:35:17","slug":"buying-spacex-at-ipo-3-big-risks-smart-investors-are-watching","status":"publish","type":"post","link":"https:\/\/quickassetsmarket.com\/index.php\/2026\/06\/08\/buying-spacex-at-ipo-3-big-risks-smart-investors-are-watching\/","title":{"rendered":"Buying SpaceX at IPO? 3 big risks smart investors are watching"},"content":{"rendered":"
<\/div>\n

SpaceX is days away from what could become the largest initial public offering in history, and investors are already treating it like a once-in-a-generation market event.<\/p>\n

The Elon Musk-led company is targeting an IPO price of about $135 a share, with trading expected to begin on Nasdaq on June 12.<\/a><\/p>\n

At roughly $1.75 trillion, the listing would put SpaceX among the most valuable companies in the world from day one. <\/p>\n

But the smarter question is not only how investors can get in, but what could go wrong once the first-day excitement fades.<\/p>\n

Price tag: Are you paying for reality or a dream?<\/h2>\n

The first risk is the price as SpaceX is coming to market at about 110 times trailing sales, a level that leaves very little room for disappointment. <\/p>\n

Its target market cap of about $1.75 trillion is already below earlier talk of a $2 trillion figure, but it is still a breathtaking ask for a company whose future depends on rockets, satellites, broadband, artificial intelligence and several still-unproven projects.<\/p>\n

Morningstar has taken one of the clearest sceptical positions. <\/p>\n

Nicholas Owens, equity analyst at Morningstar<\/a>, described the shares as \u201covervalued in almost any scenario, at least in the near term.\u201d<\/p>\n

Morningstar\u2019s fair value estimate sits near $780 billion, less than half the IPO target.<\/p>\n

That does not mean SpaceX is weak. Starlink has become a real business, the launch franchise is dominant, and Musk has a record of building companies that investors once doubted. <\/p>\n

But the stock price appears to be asking buyers to pay today for a future that may take years to arrive.<\/p>\n

There is another pressure point. OpenAI, Anthropic and other marquee artificial intelligence names are also expected to compete for public-market capital. <\/p>\n

If investors are forced to choose between several mega-growth stories at once, even SpaceX may not get unlimited patience.<\/p>\n

Also read: Before you invest in SpaceX: the IPO details most investors are missing<\/a><\/em><\/strong><\/p>\n

Rockets, regulators, and one man\u2019s iron grip<\/h2>\n

SpaceX lives and dies by launches, satellite deployments and government-linked contracts. A launch failure, regulatory delay or Starlink growth slowdown could quickly change investor sentiment. <\/p>\n

This is not a software company with near-zero delivery costs. It operates in space, hardware, telecoms and now artificial intelligence, all of which are expensive and exposed to technical setbacks.<\/p>\n

Then comes governance. <\/p>\n

David Trainer, CEO of New Constructs Research, told Fortune: \u201cWe recommend that investors avoid this IPO.\u201d His concern is not only the price. It is the structure.<\/p>\n

Elon Musk owns about 42% of the company\u2019s equity but controls around 85% of voting power through dual-class shares. <\/p>\n

That means public shareholders will carry economic risk without meaningful influence over board elections or strategic decisions.<\/p>\n

Joseph Lucoski, founder and managing partner of Lucoski, Brookman, LLP, told Fortune: <\/p>\n

\u201cI practice every day with the exchanges and regulators, and they would never accept this onerous and one-sided a structure for an emerging growth company.\u201d<\/p>\n

History has a warning for first-day buyers<\/h2>\n

Mega IPOs can produce first-day excitement and still disappoint long-term investors. <\/p>\n

Jay Ritter, director of the IPO Initiative at the University of Florida, has found that among IPOs with more than $100 million in sales and a price-to-sales ratio above 40 at the offer price, 12 of 14 underperformed the market over the next three years when bought at the first close.<\/p>\n

That warning matters because SpaceX is coming at a much richer multiple than most public debuts. A first-day pop is possible, perhaps even likely, because the Musk effect is real and demand is intense. <\/p>\n

But a first-day gain is not the same as a durable return.<\/p>\n

Truist Research has also warned that the average maximum first-year drawdown for major IPOs has reached 55%. <\/p>\n

In simple words, even strong companies can leave early buyers sitting on large paper losses before the long-term story has time to play out.<\/p>\n

The post Buying SpaceX at IPO? 3 big risks smart investors are watching<\/a> appeared first on Invezz<\/a><\/p>\n

<\/p>\n","protected":false},"excerpt":{"rendered":"

SpaceX is days away from what could become the largest initial public offering in history, and investors are already treating it like a once-in-a-generation market event. The Elon Musk-led company is targeting an IPO price of about $135 a share, with trading expected to begin on Nasdaq on June 12. At roughly $1.75 trillion, the <\/p>\n","protected":false},"author":1,"featured_media":49685,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[],"class_list":["post-49684","post","type-post","status-publish","format-standard","has-post-thumbnail","category-investing"],"_links":{"self":[{"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/posts\/49684","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/comments?post=49684"}],"version-history":[{"count":0,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/posts\/49684\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/media\/49685"}],"wp:attachment":[{"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/media?parent=49684"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/categories?post=49684"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/tags?post=49684"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}