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4 Reasons I'm Not Touching SpaceX's IPO

TheMotleyFool

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4 Reasons I'm Not Touching SpaceX's IPO: https://g.foolcdn.com/editorial/images/874070/rocket-on-chart.jpg

SpaceX (NASDAQ: SPCX), the aerospace and AI company founded by Elon Musk, will go public on June 12. It aims to raise $75 billion at a valuation of $1.77 trillion, making it the largest IPO in history. It's also reportedly more than four times oversubscribed. That's a lot of pent-up demand, but I wouldn't touch it for four simple reasons.

In 2025, SpaceX's revenue rose 33% to $18.67 billion. At its target IPO valuation, it would debut at 95 times last year's sales. Therefore, it could easily start trading at over 100 times sales.

Image source: Getty Images.

Source Fool.com

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