Boon Yoon Tan @oceantan007: "SPACEX IPO : Could This..."

Malaysia

SPACEX IPO : Could This Be The Next NVIDIA? After years of waiting, SpaceX is finally preparing to go public. The company is expected to debut on Nasdaq on June 12, targeting a fixed share price of $135, under the ticker $SPCX (Space Exploration Technologies Corp) with an IPO valuation of around US$1.75 trillion, making it one of the largest IPOs in history. But the real question is: Is SpaceX worth buying? What Does SpaceX Actually Do? Most people think SpaceX is just a rocket company. That's only part of the story. Today, SpaceX has 3 major businesses: 1. Rocket Launch Services 🚀 SpaceX dominates the global launch market with Falcon 9 and Falcon Heavy rockets. Every time governments, military agencies, or companies send satellites into space, SpaceX gets paid. 2. Starlink Internet 🌎 This is the hidden gem. Starlink already provides satellite internet to millions of users worldwide and continues expanding rapidly. Many analysts believe Starlink could eventually become larger than the rocket business itself. 3. AI & Space Infrastructure 🤖 SpaceX is increasingly positioning itself as a technology and AI infrastructure company rather than only a space company. Wall Street forecasts that AI-related revenue could become a major growth engine during the next decade. The Numbers 2025 Revenue: 💰 US$18.7 Billion 2025 Net Result: 📉 Loss of approximately US$4.9 Billion Despite the losses, revenue grew strongly because SpaceX is investing aggressively for future growth. Is The IPO Valuation Reasonable? SpaceX is targeting approximately: 💰 IPO Valuation: US$1.75 Trillion However, valuation experts are divided: • Morningstar estimates fair value around US$780 billion. • Professor Aswath Damodaran, often called the "Dean of Valuation," estimates roughly US$1.3 trillion, equivalent to about US$100 per share. • IPO pricing discussions suggest around US$135 per share. This means the IPO may be priced significantly above conservative fair value estimates. Why Investors Are Excited Think about it. SpaceX isn't competing in a US$100 billion market. It's trying to dominate: ✅ Global internet (Starlink) ✅ Commercial space launches ✅ Satellite communications ✅ Defence contracts ✅ AI infrastructure ✅ Future Moon and Mars missions If management executes successfully, some investors believe SpaceX could eventually exceed US$3 trillion to US$5 trillion in market value over the next decade. That would make today's valuation look much smaller. Why Investors Should Be Careful Every great story also has risks. ⚠️ The company is still losing billions. ⚠️ The IPO valuation is already extremely high. ⚠️ Retail investor excitement may create huge volatility. ⚠️ Competition from Amazon's Kuiper project, traditional telecom companies, and future space competitors remains significant. My View If NVIDIA is building the brains of the AI revolution, SpaceX is trying to build the infrastructure of the future world. This is not a "cheap stock." This is a "future stock." Could it drop 30%-50% after listing? Absolutely. Could it become one of the world's most valuable companies over the next 10 years? Also absolutely. For long-term investors, the biggest mistake may not be short-term volatility. It may be underestimating how large Starlink, AI infrastructure, and the space economy could become in the future. 🚀 Sometimes the market doesn't reward what a company earns today. It rewards what a company could become tomorrow. The stocks we are focusing on are $NVDA (NVIDIA Corporation) (NVIDIA Corporation) $INTC (Intel) (Intel) $QCOM (Qualcomm Inc) (Qualcomm Inc) $AMD (Advanced Micro Devices Inc) (Advanced Micro Devices Inc) $ARM (ARM Holdings PLC) (ARM Holdings PLC) $AVGO (Broadcom Inc) (Broadcom Inc)

Not investment advice. The author may have financial interests in the mentioned instruments.