The prospect of investing in SpaceX’s initial public offering (IPO) may sound appealing. With the company’s valuation soaring, many people are eager to own a piece of it. But not everyone will have access to shares at the offering price, and that’s perfectly okay.
Elon Musk’s Wealth and SpaceX Employee Benefits
Elon Musk could soon join the ranks of trillionaires, in part due to SpaceX’s success. Many of his employees stand to benefit from the IPO as well, with some potentially gaining seven-figure sums.
Investor Demand and Lottery-Like Distribution
The IPO has attracted significant interest among investors willing to buy at the $135 opening price. Some brokerage firms are addressing demand by effectively holding lotteries for these shares.
Understanding FOMO and JOMO
Fear of missing out (FOMO) is common in these situations. Yet embracing the joy of missing out (JOMO) could be a wise choice for those wary of market fluctuations.
Advice from SoFi
SoFi, a brokerage firm granting access to the IPO, has offered varying advice over time. In 2024, it encouraged involvement through private-market funds. By 2025, it advised caution to avoid impulsive FOMO trading.
Potential Outcomes for Investors
Investors might aim to quickly profit by flipping shares purchased at $135, assuming they are not bound by lockup periods. Such bets require substantial risk. For buy-and-hold investors, long-term gains are less certain. An evaluation by Morningstar appraises the stock at $63. This suggests that the $135 price might not offer immediate value.
The fluctuating valuation underscores the complexity of IPO investments. Exercising patience and understanding that missing the IPO might not be regrettable can lead to more considered investment strategies.