SpaceX, founded by Elon Musk, is currently at the center of the global narrative about developing new technological infrastructure.
Cosmic record under question
As an unquestioned giant of the space industry, combining advanced rocket systems with the satellite internet network Starlink, the company is preparing for a spectacular debut on NASDAQ under the ticker SPCX.
This unprecedented and quickly commented public offering assumes the sale of 555.6 million shares at a price of 135 USD per share, allowing the company to raise a staggering 75 billion USD. The total enterprise valuation would then reach astronomical 1.77 trillion USD!
Such an extreme valuation, however, raises serious questions about liquidity and real institutional demand. Skeptics note that a price-to-earnings ratio of about 93x makes SpaceX one of the most “heated” companies in the history of global debuts. The question is whether the modern market can bear such gigantic expectations.
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The shadow over valuation and S&P decision
Despite the widespread speculative fever, SpaceX’s finances raise significant concerns among more conservative investors. While operating revenues are growing, the company remains net unprofitable. The report for the last year revealed a loss of 4.94 billion USD, caused by massive investment outlays for developing a satellite constellation and the strategic acquisition of xAI, the company Elon Musk behind the artificial intelligence Grok.
Moreover, the S&P Dow Jones Indices committee has just officially announced that it will not impose strict profitability rules for mega-caps. This means no quick and automatic inclusion of SpaceX into the S&P 500, which is a cold shower for ETF funds that will not be forced to automatically buy SPCX shares after the debut.
The growing tension around Musk’s cosmic empire debut on the exchange has sparked a strong wave of optimism in other areas of the industry. Stock analysts rightly note that there are alternative ways to enter the space market without waiting for an uncertain allocation of SpaceX shares. Other companies in this sector have been active on the floor for a long time (such as our native Creotech), and in the perspective of the upcoming debut of the great leader, their share prices are rapidly rising on the wave of general enthusiasm.
See also: Elon Musk wants your money! SpaceX goes public and generates massive losses
The future worth billions of USD
The vision of a space revolution is not only about dreams of colonizing Mars, but also a hard and long-term business. According to Boston-based strategic consulting firm McKinsey & Company, by 2035 the space market should reach a value of up to 1.8 trillion USD. Experts unequivocally state that even before SpaceX’s debut, investors have massively rushed in to enter this market, as seen in the share prices of the most specialized listed companies in this sector.
If the lack of current profits permanently frightens large capital, the historic IPO, instead of a spectacular triumph, may bring extremely painful and deep disappointment to the entire modern technology sector.
See also: Tesla loses its leader? Elon Musk may soon leave the company
Source: Barron’s
