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SpaceX pops 11% at open after biggest U.S. IPO in history

SpaceX pops 11% at open after biggest U.S. IPO in history

Summary

SpaceX's shares rose 11% when trading started after its initial public offering (IPO), giving the company a market value of about $1.97 trillion. This makes SpaceX one of the top 10 largest companies in the U.S. by value.

Key Facts

  • SpaceX's shares were initially priced at $135 each and opened at $150.
  • The $1.97 trillion valuation would make SpaceX over 5% of the S&P 500 index if it were included.
  • Elon Musk said he gave SpaceX less than a 10% chance of success but believed in creating a space-faring civilization.
  • SpaceX's valuation is about 90 times its sales, which is considered high compared to traditional business values.
  • Many companies tend to perform worse than the market in the first three years after going public.
  • High valuations are common now, partly because of excitement around artificial intelligence (AI).
  • Early investors may sell up to 20% of their shares soon after the next earnings report.
  • Elon Musk cannot sell his shares for 366 days after the IPO, unlike other insiders who must wait 180 days.
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