SpaceX redesigns group of Wall Street's "darlings"
A week ago, SpaceX, Elon Musk's space company, went public on the New York Stock Exchange.
This is considered the largest IPO in history, responsible for increasing the company's market value to more than US$ 2 trillion upon its debut, in addition to classifying it in the ranking of the seven most valuable technology companies (the "Magnificent 7") in the USA, according to an exclusive study by Elos Ayta to CNN Money.
On the first day of trading, SpaceX shares opened at US$150, reached US$176.52 during the session and closed at US$161.11 - an increase of 19.34% in relation to the IPO target price of US$135.
On Thursday - the last business day on the US market of the week - the shares closed at US$ 185, an increase of almost 15% since their debut.
At the end of trading, the company was already valued at US$2.26 trillion, surpassing the other technology giant, Meta.
With the new market value, according to the Elos Ayta study, SpaceX ranks sixth among the seven largest technology companies in the USA. Below it is another Musk company, Tesla.
Ranking of the Magnificent 7:
- Nvidia - $5.099 trillion
- Alphabet - $4.459 trillion
- Apple - $4.377 trillion
- Microsoft - $2.818 trillion
- Amazon - $2.629 trillion
- SpaceX - $2.261 trillion
- Tesla - $1.504 trillion
- Meta Platforms - US$ 1.465 trillion
Despite being known as Elon Musk's space services company, SpaceX operates in several other areas. After merging with Starlink in 2021, SpaceX also began operating satellite internet services.
Subsequently, Elon Musk acquired, for US$44 billion, the Twitter application (now known as X), in 2022. Four years later, the step towards the expansion and merger of the space and satellite company with Musk's artificial intelligence startup, xAI, was taken.
At the time, the move boosted SpaceX's business value to US$1 trillion, while the AI company, also developer of the Grok chatbot, was valued at US$250 billion.
In the process, company spending on AI will surpass $12 billion in 2025, compared to about $4 billion on space projects and another $4 billion on connectivity.
Analysts at securities firm Oppenheimer estimate that SpaceX's AI spending will exceed $49 billion this year.
In this vein, the company announced last Tuesday (16) that it will buy Anysphere, the software company responsible for the popular artificial intelligence programming agent Cursor, for US$60 billion, in an attempt to expand its presence in the enterprise AI market.
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However, SpaceX has been losing a lot of money. Last year, the company had a loss of almost US$5 billion, on revenue of US$18.7 billion. Losses continued to increase by more than $4.3 billion in the first three months of this year, the period in which the last merger was announced.
For these reasons, the resounding success of the IPO last week intrigued the markets. The high demand for securities may be related, according to experts interviewed by CNN Money, to the promise of a trillion-dollar market for the future.
During the pre-IPO roadshow, when the company "sells" its shares to large investors, SpaceX predicted that enterprise AI applications will become a US$22.7 trillion market in the near future, which would justify the current expenses and losses.
In addition, the company brings together attributes that justify the market's enthusiasm, such as leadership in satellite connectivity, investment in artificial intelligence, projects linked to the space economy and Elon Musk's history of innovation.
"Whoever buys the share today is not investing in the company's results, but in a vision of the future", summarizes Alan Frydman, stock analyst at Genial Investimentos.
Marcelo Cabral, investment manager at Stratton Capital, mentions, in turn, that "the market is betting that investments made today will be capable of generating significant returns in the future, but the company still depends heavily on external financing to sustain its expansion", he assesses.
Therefore, the consensus is that SpaceX could make sense for investors with high risk tolerance, a long-term horizon and a willingness to face periods of strong volatility in exchange for the possibility of significant returns in the future.
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Source: CNN