SpaceX IPO valuation and stock price

What happened: SpaceX, the aerospace company founded by Elon Musk, concluded its historic IPO on May 19, 2022, with a valuation of over $2 trillion, making it one of the largest publicly traded companies in the U.S. The stock, priced at $135, raised $75 billion. Despite its high valuation, retail investors piled in, with Rocket Lab (RKLB), a de facto proxy, surging 320% in a year. Musk later stated that SpaceX could bring in $1 trillion in revenue by 2030.

Market impact: The SpaceX IPO has sparked significant interest in the aerospace sector, with investors eager to participate in the growing space economy. The high valuation and strong demand for SpaceX shares indicate robust investor confidence in the company's growth prospects. The IPO also highlights the increasing appetite for tech giants in the U.S. equity market.

What to watch next: In the coming months, investors should monitor SpaceX's stock performance, as post-IPO stocks often experience volatility within the first six months. Additionally, SpaceX's options market will provide insights into bulls' intentions, indicating whether they are seeking a quick pop or a longer-term hold. Lastly, SpaceX's upcoming earnings reports will offer a clearer picture of the company's financial health and growth trajectory.