We’re about to witness the biggest IPO in history.
To put things in perspective…
The biggest IPO before SpaceX was Saudi Aramco, which raised $25.6 billion in 2019.
The SpaceX IPO dwarfs that.
Even if you add the top three IPOs together: Aramco, Alibaba (BABA) and SoftBank (roughly $68 billion combined)…
It doesn’t come close to the $75 billion SpaceX is targeting.
The crazy thing is, we’re already seeing the SpaceX orbital effect with sympathy and hype plays galore.
But from this week and at least three weeks after the IPO…
I think we could see more supernovas than we’ve seen in the past month (which is a LOT).
But it doesn’t even stop there.
Because all the old guardrails are off with this IPO. It’s just different.
And while most traders will be chasing SpaceX shares and whatever sympathy play gets hot…
Smart traders will go in with their eyes wide open and an idea of how this could play out.
Liftoff: The SpaceX IPO
Jamie Dimon asked Elon why he chose now to take SpaceX public (it was the kickoff of the IPO road show, where they try to get investors pumped).
Elon went on a 10-minute tech talk about all the cool things they plan to do.
Eventually, he said…
“The TLDR would be, we’re embarking on a massive new growth phase and we need capital for that.”
He got there in the end (and got a laugh out of the crowd).
He also said he “feels good about the revenue projections because revenue is a lot more stable.”
So, does this mean you should try to get your hands on SpaceX stock on IPO day?
Look, if you’ve got your heart set on owning shares in SpaceX, go for it.
But don’t overlook the real opportunity here.
Because I believe the most explosive moves won’t come from SpaceX itself.
Even though there WILL be huge buying pressure…
15 Days Later
July 6. Mark your calendar. What happens on that day?
Unless the SpaceX IPO is a complete flop, SPCX will join the Nasdaq 100.
Passive Nasdaq-100 funds will be forced to buy SpaceX stock within a rebalance window.
Again, we don’t know the exact percentage of the float or the weighting on the Nasdaq 100.
Until it plays out, nobody knows for sure. But back-of-the-napkin math?
Somewhere around $10-$20 billion worth of SpaceX shares will HAVE to be bought.
Let that sink in…
Again, if you want to invest because you believe in SpaceX (and you’re willing to ride out the volatility), you could do well.
But trading is different. Most traders I know are…
On the Hunt for the Next Space “Cult” Stock
There have been a TON of space-related spikers recently. And it’s all based on the SpaceX IPO…
For example, on June 4, Solidion Technology Inc. (STI) spiked after this press release that included all the right buzzwords…
Source: PR Newswire
You gotta hand it to the company. It’s perfectly timed, a week before the SpaceX IPO.
It includes artificial intelligence, the lunar economy, orbit-based data centers, SpaceX, NASA…
Regardless of whether the tech is legit, THAT is how a company hypes itself.
Well played, right? Take a look at the chart…
Source: Stocks To Trade
STI, June 4 premarket to June 5 10:45 a.m. SpaceX Supernova.
I believe we could see a LOT more stocks do this in the coming weeks.
Remember…
SpaceX Only Goes Public Once
This is one of those rare moments where history and opportunity collide.
Think about this…
With the end of the PDT last week, and all the hype around the SpaceX IPO this week…
It could be the biggest “first buying” event in history.
EVERYONE who’s wanted to get involved in the stock market is going to try to get their hands on SpaceX stock.
The typical “IPO pop” is something like 19%-20%.
If SpaceX does that, it would be impressive.
But it would only be the first-stage booster before the second stage lights.
Seriously. SpaceX isn’t just a space company. It’s AI, data centers in space, everywhere internet…
This is only the beginning.
The SpaceX IPO is only four days from now (but there’s still time to position yourself).
The key is to understand the massive opportunity in front of you.
You’ll be able to invest in SpaceX for years to come…
But you’ll only get ONE chance to take advantage of the IPO the smart way.
If you have any questions, email me at [email protected].
Cheers,
Tim SykesEditor, Tim Sykes Daily
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