1 Fresh Warning About the SpaceX IPO
There are several risks investors should consider.
1 Fresh Warning About the SpaceX IPO
Overview
The upcoming SpaceX initial public offering (IPO) has the market in rapture, with investors looking into all sorts of ways to buy the hot stock. But there is a fair amount of risk in investing in the IPO, and a new one just emerged.
SpaceX is expected to be the largest IPO ever, with plans to raise $75 billion and debut with a valuation near $2 trillion. However, it's unprofitable, posting a $4.4 billion loss in 2025 and a $4.3 billion loss in the 2026 first quarter. On a price-to-sales basis, the stock is likely to be extremely expensive, starting out at around 100 times trailing-12-month sales. These are reasons the stock could tumble early.
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Originally published at www.fool.com.
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