Key highlights:
- Critics are poking holes in SpaceX’s $1.7 trillion valuation ahead of IPO
- Morningstar says a fair value estimate is $63 per share rather than SpaceX’s peg of $135.
- Despite the wave of critics, investors are highly anticipating the IPO scheduled for June 12.
SpaceX is forging ahead with its planned $135 IPO share price despite mounting criticism that the company’s valuation has become disconnected from its fundamentals. The aerospace giant is seeking a valuation of $1.75 trillion, a figure that would make it one of the most valuable companies in the world.
Analysts see nearly $1 trillion valuation gap in SpaceX
One of the strongest challenges to SpaceX’s valuation came from US-based financial services firm Morningstar, which recently estimated the company’s fair value at around $780 billion. The figure is less than half of the valuation implied by and the rapid rise of xAI have convinced many investors that traditional valuation models may underestimate the potential of Musk-led ventures.Furthermore, concerns around forced index buying and “FOMO” have seen investors jostling for position ahead of the IPO. CNBC’s Jim Cramer has previously warned of an imminent artificial supply squeeze given the stock’s tiny public float, with investors keen on leveraging the structural quirk to their advantage.
If the offering succeeds, it could validate the market’s willingness to pay a significant premium for growth and innovation. While there is a possibility that the offering may struggle, SpaceX is unwilling to blink as the IPO inches closer.
Source:: Despite Wall Street Sounding the Alarm, SpaceX Doubles Down on $135 IPO Price