The successful debut of SpaceX (SPCX) to public markets is the type of landmark IPO that just may trigger a new wave of gains for the stock market.
The insight: Netscape Navigator’s 1995 IPO became the internet launch point that spurred investors to dream bigger, Evercore ISI strategist Julian Emanuel recalled in a new note
The IPO at the time was a by-product of the rapid rise of the internet and spurred more companies involved in the technology to go public. It’s not unlike how AI today is the dominant theme in corporate America, leading to the creation of new companies. Emanuel explained, “An era of increasing productivity and unprecedented wealth creation began [after the Netscape IPO].
Three decades later, comparisons to 1999 are growing amidst historic AI led momentum off the pivotal March 30 low. Likewise, SpaceX’s largest IPO in history could accelerate a capital market cycle that catalyzes the next leg of the bull market. Interspersed throughout prior IPO eras were landmark global listings that allowed investors an avenue to gain exposure to emergent themes.