Space X, the most absurd stock market listing in history

On Friday, June 12, SpaceX began trading on the stock market for the first time. After a record theoretical valuation of $130 per share, the debut was spectacular: it opened at $149, reached a high of $176, and closed the session at $161, 19% above the initial price. With this valuation, it has become the seventh largest company in the world by market capitalization, exceeding $2 trillion.

But how does a stock market launch work? When a company decides to go public, it does so mainly to raise capital. Based on various expert valuations, an initial price is set—$130 in this case—but from then on, the market dictates. Price behavior is unpredictable: it can skyrocket in a few hours or fall sharply in the following days. In fact, it is common for many companies to rise in the first days of trading and, weeks later, end up below the starting price. Will the same happen with SpaceX? Nobody knows.

For small investors, caution is more necessary than ever. If Bitcoin is already considered a very volatile asset, a newly listed company on the stock market can be even more so. Furthermore, the FOMO effect (fear of missing out) is added: the great expectation makes many investors feel they have to buy before it's too late.

Paradoxically, SpaceX has accumulated multi-billion dollar losses and no profits are expected for many years to come. However, the company is working on projects that could transform the future, such as space transport and logistics. Therefore, the valuation is not based on current results but on expectations of future profits. The evolution of the coming weeks will need to be followed with great prudence.