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1 Fresh Warning About the SpaceX IPO

TheMotleyFool

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1 Fresh Warning About the SpaceX IPO: https://g.foolcdn.com/editorial/images/873240/caution-sign-on-traffic-cones.jpg

The upcoming SpaceX initial public offering (IPO) has the market in rapture, with investors looking into all sorts of ways to buy the hot stock. But there is a fair amount of risk in investing in the IPO, and a new one just emerged.

SpaceX is expected to be the largest IPO ever, with plans to raise $75 billion and debut with a valuation near $2 trillion. However, it's unprofitable, posting a $4.4 billion loss in 2025 and a $4.3 billion loss in the 2026 first quarter. On a price-to-sales basis, the stock is likely to be extremely expensive, starting out at around 100 times trailing-12-month sales. These are reasons the stock could tumble early.

Image source: Getty Images.

Source Fool.com

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