Key insights
- The author suggests that SpaceX's IPO could experience a short-term price surge due to a limited float, potentially leading to a temporary overvaluation. However, they caution that the current private valuation already prices in substantial future growth, making it a potentially risky investment despite the initial pump.
I know its unpopular opinion here and most people are expecting it to crash and burn on the ipo day but they are missing one key detail- FLOAT. Only 3%-5% of the float will be tradeable on the ipo day so in theory you wouldn't need alot of money to pump this baby upto $4T valuation. Remember alot of big private equities and family offices of rich and powerful people have money in spacex.
P.S. i am not saying this is a good investment, Even if you think spacex would be the fastest growing company in the history of mankind for next 10 years, that upside has already been priced in at $1.75T valuation.