Key Points
SpaceX (NASDAQ: SPCX) went public on Friday, marking a significant milestone as it became the seventh-largest company on U.S. stock exchanges. Its initial public offering (IPO) capitalized at approximately $2.1 trillion, following a revenue of $18.7 billion for the year 2025, resulting in a price-to-sales ratio exceeding 112.
Morningstar’s analysis suggests SpaceX’s actual valuation is $63 per share, roughly 42% of its current IPO price, indicating the stock is “significantly overvalued.” Optimistic scenarios project a potential value of $154 per share, but with only a 7% probability of success.
Investors are cautioned to consider the complexities of SpaceX’s business model and risks, particularly regarding its merger with xAI and potential future capital raises. The concerns echoed advice from Warren Buffett and Benjamin Graham that IPOs often favor sellers and highlight the importance of understanding investments before engaging.
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