Should You Buy The SpaceX IPO? Fund Manager Answers | Will Rhind
TL;DR
GraniteShares CEO Will Rhind analyzes the recent tech selloff triggered by Broadcom's earnings guidance and previews SpaceX's historic $1.8 trillion IPO, highlighting the tension between Starlink's profitability and XAI's potential versus extreme valuation concerns, while announcing leveraged ETFs to trade both directions.
📉 Market Volatility & AI Earnings 2 insights
Broadcom guidance triggers chip selloff
Broadcom beat earnings but failed to raise guidance enough for expectations priced to perfection, sparking a 4% NASDAQ drop and broader semiconductor decline.
Good news becomes selling event
Major AI stocks like Nvidia often sell off after strong earnings reports as investors take profits at all-time highs, creating heightened volatility around MAG7 announcements.
🚀 SpaceX IPO Structure 2 insights
Historic $1.8 trillion valuation
SpaceX plans to price 555 million shares at $135 each on June 11, raising $75 billion in what will be the largest IPO in history.
Oversubscribed but liquidity concerns remain
While institutional demand exceeds supply, investors worry about unknown quantities of existing shares outside lockup agreements that could flood the market post-IPO.
⚖️ Investment Bull vs Bear Cases 3 insights
Starlink and XAI drive growth narrative
Starlink currently generates 61-70% of revenue and is profitable, while XAI competes with OpenAI and Anthropic in a potential trillion-dollar market.
Future opportunities justify premium valuation
Bulls point to space-based data centers and Elon Musk's track record with Tesla as evidence that future growth opportunities transcend current profitability metrics.
Valuation defies traditional metrics
At $1.8 trillion, the company trades at extreme multiples that value-oriented investors cannot justify, creating risk of disappointment similar to Alibaba and Saudi Aramco's mega-IPOs.
📊 Trading Strategy & ETFs 1 insight
GraniteShares to launch leveraged ETFs
GraniteShares will introduce 2x long and 2x short SpaceX ETFs on IPO day to allow investors to express both bullish and bearish views on the polarizing valuation.
Bottom Line
Investors must decide whether SpaceX represents the next Tesla-like growth story worth any valuation or an expensive exit for early investors, with the only certainty being extreme volatility around the debut.
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