SpaceX IPO Raises Questions Over Investor Appetite
SpaceX is currently targeting a valuation of at least $1.8 trillion through its upcoming initial public offering, with investors raising doubts over whether there is enough demand this summer.
Investor Appetite for AI and Tech
According to Nigel Green, CEO of deVere Group, markets are about to discover whether investor appetite for AI and tech is as deep as many assume.
Green cautioned that investors are about to face one of the biggest tests of appetite for artificial intelligence and tech assets in modern market history.
Expected Listings and Valuations
SpaceX alone is seeking one of the largest valuations ever attached to a newly public company, with expected listings of OpenAI and Anthropic adding to the equation.
- SpaceX is reportedly seeking to raise as much as $75 billion, potentially making it the largest IPO ever.
- The company generated almost $19 billion in revenue last year, driven largely by the rapid expansion of Starlink.
Investor Discipline
Green warned that investors should remain disciplined as excitement intensifies, noting that a great company and a great stock are not always the same thing.
At close to $1.8 trillion, investors are effectively pricing in years of success before much of that profitability has arrived.