Regular Investors Reportedly Order $100 Billion In Shares (Live Updates)
Forbes • • business
Key Points:
- Retail investors have placed orders exceeding $100 billion for SpaceX shares ahead of its IPO, potentially breaking records for investor demand, Bloomberg reports.
- Senator Elizabeth Warren has called for the SEC to delay the IPO, citing concerns over valuation transparency, governance structure, mandatory arbitration, and potential risks to passive index fund investors.
- Analysts warn that SpaceX’s IPO valuation may be significantly overestimated, with Morningstar projecting a fair price around $63 per share, far below the targeted $135, and caution investors about hype-driven volatility.
- SpaceX reported a net loss of $4.28 billion in the latest quarter, with profitability driven mainly by its Starlink division, while heavy capital expenditures focus on AI development.
- Elon Musk, holding 42% of SpaceX, could become a trillionaire if shares trade at the projected price, with other company executives and investors also poised to see substantial increases in net worth post-IPO.