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Last week, SpaceX went public.
It was the biggest IPO in history. All eyes were on it.
But while the market chases the hype, we’re focused on something different: great companies that quietly create more value year after year.
Let’s dive into our Buy-Hold-Sell list today.
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Mr. Market is a manic-depressive.
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SpaceX went public at an IPO price of $135 per share and debuted on the stock market at $150 per share.
Today SpaceX is trading at $191 per share.
This means Mr. Market values SpaceX at $2.5 trillion (!)
This is even higher than the IPO valuation of $1.75 trillion, almost a trillion dollar market cap gain in less than a week (!)
Here are the facts:
Its the largest IPO ever
The sixth-largest company in the US, above Tesla
More valuable than companies like JP Morgan, Visa, and Walmart
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While that looks incredible, let’s look deeper for a moment.
At a valuation level of $1.75 trillion, SpaceX trades at 90x (!) its revenue.
That is higher than Palantir (75x revenue)
Higher than Nvidia (20x)
Higher than Tesla (16x)
Investment banks called it the most exciting IPO in history.
No wonder they say that.
They are making over $500 million (!) just in fees from this IPO.
But this isn't the first time we've seen something this crazy.
Let’s go back to 1999.
Do you remember Pets.com?
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Here’s Pets.com in a nutshell:
Pets.com was an online retailer during the dot-com bubble
They sold pet food, pet toys (they heavily advertised puppet mascot),..
The online boom was supposed to increase its revenue drastically
Pets.com raised $82.5 million for its IPO in 2000
The stock peaked at $14
Nine months later it traded at $0.19, and the company filed for bankruptcy