As Elon Musk‘s SpaceX prepares for what is expected to be the largest IPO in history, bulls say investors are betting on a future where space-based technologies reshape everything from internet connectivity and healthcare to scientific research and human exploration.
SpaceX will begin trading on the Nasdaq today, June 12, at a staggering $1.77 trillion valuation, capping a two-decade journey from a small rocket startup into one of the world’s most valuable companies.
Star Trek Future
While some supporters are focused on Musk’s track record, others argue the real story is SpaceX‘s future earning power.
Speaking on Bloomberg Television, Reddit Inc. (NYSE:RDDT) co-founder Alexis Ohanian said SpaceX represents far more than a launch company, pointing to opportunities in Starlink, space-based research and emerging industries, including pharmaceutical and biotechnology breakthroughs.
“As we start to unlock pharmaceuticals and biotech that could really only be done in Zero-G, we’re talking about saving lives, improving quality of life,” he said, describing it as part of the “Star Trek future” that many people imagined growing up.
To CNBC’s Jim Cramer, the most fascinating part of the IPO may not be SpaceX itself, but the frenzy surrounding it.
“Someone is being real smart about this deal,” Cramer said in a post on X Thursday, and suggested that the demand for the offering could significantly exceed the number of shares available.
Former MIT rocket scientist and investor Alex Divinsky, who said he got rich betting on NVIDIA Corp (NASDAQ:NVDA) called SpaceX “one of the biggest wealth opportunities” he has seen in more than a decade, arguing that the market has yet to fully appreciate the company’s long-term potential.
The $400 Billion Bull Case
ARK Invest‘s Chief Futurist, Brett Winton, told Bloomberg that investors may be underestimating the revenue potential of Starlink and Starship, arguing that the company could generate between $300 billion and $400 billion in annual revenue by 2030.
The bullish outlook is echoed by New Street Research analyst Pierre Ferragu Thursday, who projected SpaceX could generate $195.3 billion by 2030 in revenue and assigned the company a valuation of roughly $2.3 trillion.
Entrepreneur Peter Diamandis argued that SpaceX’s success serves as a reminder that some of Musk’s most ambitious ideas have overcome years of skepticism and doubts about their viability. “Never bet against Elon,” he wrote on X.
Winton also defended Musk’s ambitious forecasts, saying the billionaire has a history of setting aggressive targets to push his companies toward delivering “world-changing technologies.”
A Valuation That Divides Wall Street
Wedbush analyst Dan Ives summed up the mood in a post on X, saying “the market is laser-focused on the SpaceX IPO.”
Yet not everyone is convinced the valuation is justified. Investor Steve Eisman, popularly known for predicting the 2008 financial crisis, recently described SpaceX’s $1.77 trillion valuation as “crazy,” while some analysts have questioned whether the company’s current business can support expectations embedded in such a lofty price tag.
The divide highlights the central question facing investors – whether SpaceX should be valued for the business it operates today, or for the technologies and industries supporters believe it could create over the coming decades.
Benzinga Edge Rankings indicate that NVDA has a Momentum score in the 77th percentile and a Growth score in the 98th percentile.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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