SpaceX: Why This $1.6 Trillion Opportunity Is Critical for the Upcoming IPO
Recent filings clarify SpaceX's biggest growth opportunities.
SpaceX: Why This $1.6 Trillion Opportunity Is Critical for the Upcoming IPO
Overview
SpaceX expects to go public on June 12. The company hopes to raise $75 billion or more with a target valuation of $1.77 trillion. That would value the company well above Elon Musk's other company, Tesla (NASDAQ: TSLA), which has significantly higher revenue and is already profitable.
Experts are split on whether such a gargantuan valuation is justified. A recent report from Morningstar, for example, calls the IPO stock "significantly overvalued." The firm estimates that SpaceX's true value is currently around $780 billion -- less than half the company's intended valuation.
Still, Morningstar sees SpaceX's share price possibly rising once shares hit the public market. "With a small initial float boosted by almost every investment bank on the planet, buoyant investor appetite for AI infrastructure bids, and an unprecedented path to inclusion in the Nasdaq 100 Index just 15 trading days after the IPO, we expect SpaceX's share price will likely survive separation and may even ascend, at least for a time," the firm concludes.
Details
Source
Originally published at www.fool.com.
