SpaceX IPO Update
Space Exploration Technologies Corp. (NASDAQ: SPCX), or SpaceX, debuted on June 12, 2023, as the largest IPO in Wall Street history. However, following initial excitement, shares declined due to factors such as the expiration of a lockup period for insiders and high capital expenditures, with a projected $20.7 billion for 2025, nearly double the 2024 total.
As of August 17, 2023, SpaceX’s stock had rebounded to over its IPO price of $135, climbing nearly 40% from a low of $104.83 after reporting a 92% year-over-year revenue increase to $7.8 billion for Q2. The company’s net loss decreased to $541 million, improved from the previous year’s $1 billion.
Additionally, SpaceX’s artificial intelligence sector reported significant growth, with revenue soaring to $2.6 billion. The overall TAM for AI is estimated at $26.5 trillion, substantially larger than the $370 billion for its space operations. Despite this growth, the stock remains expensive, with a price-to-sales ratio over 90 and looming unlocks of approximately 700 million shares in September and October 2023.
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