SpaceX is set to hold a record-breaking IPO aiming to secure a funding of nearly $75 billion in exchange of equity at $135 each at a valuation of $1.77 trillion.
The listing on NASDAQ (SPCX) reflects strong investor interest in the leading players of the tech landscape associated with artificial intelligence and space infrastructure.
Why is SpaceX's current valuation so high?
In 2025, the Elon-Musk owned company generated $18.67 billion in revenue, and reported a $4.94 billion net loss, marking a skyrocketing increase in its valuation, with some credible analysts calling it stretched.
Several critics argued the price reflects future expectations in AI infrastructure and space-based technologies instead of current profits.
What are investors worried about?
Ahead of the highly-anticipated financial event, some analysts have expressed concerns whether the valuation is justified by real-world earnings or not.
Moreover, some analysts called the pricing speculative as it heavily relies on long-term projects that remain unproven like orbital data centers and advanced space computing networks.
Market volatility and risks
A report suggested that IPO is oversubscribed, meaning demand exceeds supply, that may lead to a sudden price swing after the trading starts.
Moreover, early share sale permissions under lockup arrangements may raise selling pressure in the weeks after listing.
What will happen next?
There remains a sense of uncertainty due to market volatility. Some expect strong growth due to SpaceX’s technological dominance, while others warn of a potential correction if future projects fail to deliver.
