Avoid the SpaceX IPO? 'The juice has been squeezed from this orange'
CNBC • • general
Key Points:
- SpaceX is preparing for a public listing with a potential valuation of $1.75 trillion and aims to raise up to $75 billion, making it possibly the largest U.S. IPO ever.
- Experts like Bryn Talkington of Requisite Capital Management caution investors that much of SpaceX's value is already reflected in its price, suggesting limited upside for retail investors.
- The company's sizable valuation, relative to its $16 billion revenue, raises concerns about the potential for substantial returns post-IPO.
- Stephen Weiss of Short Hills Capital Partners echoed skepticism, questioning the feasibility of significant growth from such a large market cap without substantial revenue increases.
- SpaceX confidentially filed for the IPO last week and is expected to release a public filing at least 15 days before its roadshow, with a possible market debut around June.
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