Elon Musk’s SpaceX (SPCX) officially debuted on public markets in what quickly became the biggest and perhaps most closely watched IPO of all time.
Shares surged immediately after Friday’s offering and closed up 19% over the $135 per share IPO price.
This leaves SPCX’s market capitalization at approximately $2.1 trillion, making it the seventh most valuable public company in the world.
Wall Street investment banks cleared more than $500 million in fees, while venture capital firms and company employees crystalized enormous wealth. But the frenzy around the offering raises an important question for investors…
At what point does excitement begin to outrun valuation?
In this week’s edition of 76report LIVE, Trish Regan and Rob Hordon discuss why they believe investors should be careful not to confuse a great company with a great investment at any price.
They explain how unusual supply dynamics surrounding the IPO are contributing to the early surge in shares, as only a small percentage of total SPCX shares were actually released to the public market.
Institutional investors and index funds may still need to establish positions in the weeks ahead, but the supply-demand balance could change significantly once insider lockups expire, speculative demand fades, and unbridled optimism gives way to financial reality.
The conversation also explores the broader implications of the AI IPO wave, with companies like Anthropic and OpenAI expected to pursue their own public listings in the future.
There is also a fascinating disconnect developing in the market right now as the new kids on the AI block start to take all the limelight. Trish and Rob discuss why many existing AI plays may actually offer more attractive risk-reward opportunities.
Catch the full conversation below!
