Investors have waited for SpaceX to go public for the longest time. Now, it finally looks like it’s happening.
Reports say Elon Musk’s space company could launch its IPO on June 12 with a valuation between $1.75 trillion and $2 trillion. If that happens, SpaceX could become the biggest IPO in history.
That is why so many people are excited.
But while many investors see this as a huge opportunity, others believe it could also become one of the riskiest stock launches Wall Street has ever seen.
What’s Causing the Hype Around SpaceX?
There are not many companies like SpaceX.
The company already leads the space industry with its reusable rockets and satellite business. It has worked closely with NASA and completed several astronaut missions into space.
SpaceX is also the company behind Starlink, the satellite internet service that is growing very quickly around the world.
Reports say Starlink already has close to 10,300 satellites in orbit and about 9 million users globally. The business reportedly made around $11.4 billion in revenue last year and has very high profit margins.
That alone is enough to get investors excited. But there’s more.
Earlier this year, Musk merged his AI company xAI into the SpaceX business. Reports also suggest SpaceX wants to build data centers in space to support artificial intelligence companies in the future.
Because of this, many investors no longer see SpaceX as just a rocket company. They now see it as a space, AI, the internet, and a technology giant all at once.
That’s a major reason why Wall Street believes the company could be worth nearly $2 trillion.
Wall Street Is So Bullish on SpaceX
Big investors are already lining up ahead of the IPO.
Reports say BlackRock could invest between $5 billion and $10 billion into the IPO. Several hedge funds that invested in SpaceX years ago are also expected to make billions if the company goes public at its expected valuation.
One hedge fund, D1 Capital Partners, reportedly invested in SpaceX back in 2020 when the company was worth around $36 billion. Today, that investment could be worth …
This post was originally published here
