SpaceX’s IPO rewrites the record books
Image: CNN
On Friday, SpaceX officially entered the public markets following a record-breaking $75 billion IPO, with shares opening 11% above their offering price and finishing the day 19% higher.
By the closing bell, the company was worth $2.10 trillion, making it the world’s seventh-most valuable public company—and turning CEO Elon Musk into the first-ever trillionaire.
Is SpaceX actually worth that much?
The blockbuster debut sparked a debate among financial experts over SpaceX’s true value. Investors who are high on the company’s future argue that, unlike traditional aerospace companies, SpaceX has multiple growth engines, including:
- Launch services, including reusable rocket technology and a growing share of commercial launches.
- Starlink, the world's largest satellite internet network, generated more than $11 billion in revenue last year and turned a profit.
- Government contracts, with NASA and the Department of Defense relying on SpaceX for missions ranging from astronaut launches to national security operations.
- Emerging AI initiatives, including plans for large-scale computing infrastructure
Supporters also point to the overwhelming demand surrounding the IPO, arguing that investors are placing a premium on companies they believe can drive future technological innovation and economic growth.
On the flip side: Critics argue the market may be getting ahead of itself. SpaceX went into its IPO trading at a price 93 times higher than its annual revenue (~$19 billion), leading some analysts to conclude its sky-high valuation is divorced from its underlying fundamentals.
- The company's stock price assumes years of extraordinary growth, leaving little room for delays, setbacks, or slower-than-expected expansion.
- Other critics note that AI infrastructure—one of SpaceX’s major bets—has yet to prove long-term profitability.
- They also note that CEO Elon Musk controls more than 80% of SpaceX's voting power, giving shareholders limited influence over major company decisions.
Looking ahead… SpaceX was the first major tech IPO of 2026, but it likely won't be the last. Anthropic and OpenAI are both preparing for public offerings in the coming months that could value the companies at $1+ trillion, with many investors watching closely to see whether they can generate the same enthusiasm as SpaceX.
📊 Flash poll: On the whole, which of the following best describes your opinion of SpaceX’s current valuation?
See a 360° view of what pundits are saying →
Sprinkles from the Left
- Some commentators argue that today's stock market increasingly rewards hype, celebrity, and ambitious promises over proven business performance, raising concerns that well-connected executives and investors can profit from speculative narratives while ordinary investors bear much of the risk when expectations fail to match reality.
- Others contend that investors are becoming too willing to chase excitement and big promises from high-profile tech leaders, and warn that fear of missing out can push company valuations far beyond what their underlying businesses justify, leaving markets vulnerable when expectations eventually collide with reality.
- “Our Stock Market Is Broken” –Aaron Zamost, NY Times
- “Jim Chanos Is Worth Hearing on SpaceX, Too” –Lionel Laurent, Bloomberg
- “SpaceX IPO shows Musk’s genius is in mythmaking” –Richard Waters, Financial Times
Sprinkles from the Right
- Some commentators argue that investors should stop viewing AI companies as the next generation of internet firms and recognize that advanced AI is increasingly becoming a national-security technology, meaning governments will likely play a much larger role in shaping how these companies operate and grow.
- Others contend that SpaceX’s massive valuation reflects confidence that entrepreneurial risk-taking and private-sector innovation can accomplish things that government programs often struggle to achieve, arguing that investors are ultimately betting on Elon Musk’s ability to turn ambitious long-term goals into real technological breakthroughs.
- “What Investors Should Realize About Those AI IPOs” –Holman W. Jenkins, Jr., WSJ
- “The most audacious IPO in history” –WaPo Editorial Board
- “Make IPOs great again” –Washington Examiner Editorial Board
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