Australians desperate to snag a piece of Elon Musk\u2019s SpaceX have been driven by massive \u201cFOMO\u201d, a leading stock picker believes.<\/p>\n
The leading rocket, satellite and artificial intelligence business is expected to go public on June 12 on the tech-heavy Nasdaq.<\/p>\n
One way Australian investors can purchase their slice of SpaceX is through Pengana Capital\u2019s Private Equity Trust on the ASX.<\/p>\n
Pengana co-founder Russell Pillemar said that investors seeing the company\u2019s projected valuation lift to about US$1.8 trillion ($2.5t) has boosted interest in the stock.<\/p>\n
\u201cThere’s been a bit of a FOMO (fear of missing out) experience happening here as people have seen subsequent rounds of SpaceX being marked up at a rapid, rapid rate,\u201d Mr Pillemar told SkyNews.com.au.<\/p>\n
\u201cPeople have started calling and asking how can we get exposure, where does this exist etc. and that’s ramped even more so as they’ve come to the initial public offering.\u201d<\/p>\n
Its valuation has lifted to US$1.8t from US$800b in late 2025 and from the significantly smaller US$33b valuation in 2019.<\/p>\n
Meanwhile, Australian retail investors are expected to raise up to $1b for SpaceX’s initial public offering.<\/p>\n
Commonwealth Bank of Australia\u2019s CommSec – the nation’s largest retail trading platform – has also been appointed one of the retail brokers for SpaceX.<\/p>\n
Investors hoping for exponential returns enjoyed by early buyers of other major tech stocks have been warned to limit their expectations.<\/p>\n
This comes as those who invested in companies like Tesla or Nvidia ten years ago would have seen the stocks skyrocket about 2,900 per cent and 21,000 per cent respectively.<\/p>\n
Mr Pillemar said SpaceX\u2019s already-high value while going public makes this a different situation.<\/p>\n
\u201cThis is very different, and I think investors need to be aware of that,\u201d he said.<\/p>\n
\u201cWhen you come into SpaceX, be aware that the huge amounts of money have already been created, and it’s difficult to take a $2 trillion company and create rapid value accretion from that.<\/p>\n
\u201cIt doesn’t mean it’s not a good investment – I think it’s a great investment – but if you’re looking to create rapid value creation, it’s probably too late to do that.\u201d<\/p>\n
SpaceX generated almost US$19b in revenue last year after a rapid expansion of its satellite internet service Starlink.<\/p>\n
It is looking to raise about US$75b for its IPO, which could potentially make it one of the largest stock offerings ever.<\/p>\n
Nigel Green, CEO of global financial advisory giant deVere Group, said the company\u2019s launch could test how excited investors still are for AI and tech assets.<\/p>\n
\u201cMarkets are about to discover whether investor appetite for AI and tech is as deep as many assume,\u201d Mr Green said in a statement.<\/p>\n
\u201cSpaceX alone is seeking one of the largest valuations ever attached to a newly public company.\u201d<\/p>\n
He also questioned the massive market capitalisation SpaceX was seeking which he argued would be difficult to maintain.<\/p>\n
\u201cMarkets are being asked to place an extraordinary valuation on a business that continues to invest aggressively and burn significant amounts of cash in pursuit of future growth,\u201d Mr Green said.<\/p>\n
\u201cAt close to $1.8 trillion, investors are effectively pricing in years of success before much of that profitability has arrived.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"Australians desperate to snag a piece of Elon Musk\u2019s SpaceX have been driven by massive \u201cFOMO\u201d, a leading…\n","protected":false},"author":2,"featured_media":705173,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[23],"tags":[64,63,25963,2007,343089,128,285,5437,5707],"class_list":["post-705172","post","type-post","status-publish","format-standard","has-post-thumbnail","category-space","tag-au","tag-australia","tag-commsec","tag-nasdaq","tag-pengana-capital","tag-science","tag-space","tag-spacex","tag-starlink"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts\/705172","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/comments?post=705172"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts\/705172\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/media\/705173"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/media?parent=705172"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/categories?post=705172"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/tags?post=705172"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}