SpaceX IPO June 30th! Any takers?

[marylander1940]

OP note: Thanks, but no thanks! Besides the company depends too much in "personal connections". 

 

SpaceX Is Going Public at a $1.75 Trillion Valuation. Here Is 1 Stock to Buy Before It Does. | The Motley Fool

Edited 20 hours ago by marylander1940

[Kevin Slater]

In general, it's not a great idea to take part in IPOs.  Wait at least until the lock-up period is over (when all the insiders are allowed to sell their shares, which often tanks the stock).  

Kevin Slater

[marylander1940]

13 minutes ago, Kevin Slater said:

In general, it's not a great idea to take part in IPOs.  Wait at least until the lock-up period is over (when all the insiders are allowed to sell their shares, which often tanks the stock).  

Kevin Slater

Agreed, it's usually good for the company to get cash this way but it's bad for buyers when it comes to privacy public scrutiny, and short-term expectations for profit.

[+ JamesB]

SpaceX is definitely not a typical IPO. I would avoid jumping into it immediately and consider waiting past the lock-up period

This is likely to be a “hot” IPO, with intense media coverage, strong retail demand and Elon Musk’s brand potentially driving a sharp first-day surge. If it were to list in June, the lock-up period would typically expire around December 2026. At that point, insiders, early investors, employees and venture backers, many of whom hold substantial stakes, would be able to sell, which often puts downward pressure on the stock as supply increases.

There’s also some speculation that SpaceX could implement a staggered or more flexible lock-up, allowing certain holders to sell earlier, which might add to short-term volatility. At a valuation around $1.75T, the company would be priced for near-perfect execution. Any setbacks, whether delays in Starship, increased competition in satellite services, regulatory hurdles, or a broader market pullback, could lead to a significant correction after the IPO.

[Kevin Slater]

I hate that they're considering altering the rules for S&P inclusion to get SpaceX in earlier than it otherwise would be.

Kevin Slater

[+ FrankR]

11 hours ago, Kevin Slater said:

I hate that they're considering altering the rules for S&P inclusion to get SpaceX in earlier than it otherwise would be.

Kevin Slater

Indeed - it is adding to some of the concerns I have been nursing about Cap based index funds.  Specifically, concentration risk.  I have started to de-risk by shifting to Equal weight index funds. (Instead of ending up with SpaceX at 4% of the fund projected at entry, it will only be 0.2%) 

Edited 10 minutes ago by FrankR

[Kevin Slater]

1 hour ago, FrankR said:

Indeed - it is adding to some of the concerns I have been nursing about Cap based index funds.  Specifically, concentration risk.  I have started to de-risk by shifting to Equal weight index funds. (Instead of ending up with SpaceX at 4% of the fund projected at entey, it will only be 0.2%) 

Ticker symbol GSEW with a .09% expense ratio for those interested.

Kevin Slater

[+ FrankR]

10 hours ago, FrankR said:

Indeed - it is adding to some of the concerns I have been nursing about Cap based index funds.  Specifically, concentration risk.  I have started to de-risk by shifting to Equal weight index funds. (Instead of ending up with SpaceX at 4% of the fund projected at entry, it will only be 0.2%) 

 

9 hours ago, Kevin Slater said:

Ticker symbol GSEW with a .09% expense ratio for those interested.

Kevin Slater

Thank you @Kevin Slater.  Just to be clear: this is not a recommendation or financial advice. I am simply sharing what I am doing based on my circumstances.  Always a good idea to consult a licenses professional that knows your circumstances before making big financial decisions.  (And no, you cant afford me!! Haha) 🤓