The SpaceX IPO is one of the most highly anticipated public offerings in market history, and it’s slated to become the largest IPO of all time when it goes public on June 12.
While there’s no shortage of excitement around SpaceX, investing immediately after it goes public can be risky
IPO stocks tend to carry more risk in general, as they’re new to the market and don’t have an established track record yet. Not all investors are comfortable with that level of uncertainty, and that’s OK. If you’re still eager to capitalize on SpaceX’s debut without buying it directly, investing in a broader ETF can be another option.
SpaceX is set to shake up the market SpaceX is targeting a massive valuation of between $1.75 trillion and $2 trillion ahead of its IPO. Only six companies in the S&P 500 (SNPINDEX: ^GSPC) have a market cap of more than $2 trillion, meaning that if SpaceX were weighted by total market cap, it could become one of the largest players in the market. That said, the rules around adding new IPOs to major indexes can get murky — especially with a company the size of SpaceX.