Small investors scrambled to get in on the SpaceX IPO, even as some believe the valuation is 'stupid'

As the highly anticipated SpaceX initial public offering (IPO) approaches, a wave of small investors is expressing interest, even as skepticism surrounds the company's ambitious valuation. Marvin Jung, a 51-year-old regional director in veterinary operations, is among those intrigued by the offering. Despite labeling SpaceX's entry into the public market as 'really, really aggressive' with a share price set at $135, Jung has requested 1,000 shares through Robinhood, believing that enthusiasm will overshadow price concerns. With a valuation forecasted at $1.77 trillion, SpaceX would become the seventh-largest company in the U.S., surpassing even Tesla. Jung, while critical of the valuation, is drawn in by the unusually high allocation of shares for retail investors, which stands at around 20%. Although this figure is lower than previous expectations, it still represents a significant increase compared to typical IPOs, which usually reserve only 5% to 10% for retail. For traders looking to access IPO shares, platforms like Fidelity are lowering their usual account balance thresholds, making it easier for small investors to participate. Jung, having previously thrived during the meme-stock phenomenon, is not planning to hold his shares long-term. Instead, he anticipates a robust first-day rally, estimating a minimum gain of 30% before selling. He aims to reinvest in what he perceives as the next wave of blockbuster IPOs, including Anthropic and OpenAI. The excitement surrounding SpaceX's IPO is palpable, with many investors eager to avoid missing out, likening it to the 'Super Bowl of IPOs.' Mikey Moran, another investor, reflects on his past trading decisions and embraces the risk despite concerns regarding valuation. Andrew Chen, a student and investor, exhibits a more cautious approach, requesting shares but acknowledging the speculative nature of the investment given its lofty market cap. He believes in Musk's ability to deliver on his ambitious vision, making this IPO a unique opportunity. However, not everyone is sold on the hype. Ross Cameron, a trading education platform founder, remains skeptical about demand, stating he would only invest if the allocation indicates strong interest. He advocates for a strategic approach—waiting to assess the stock's movement before making a long-term commitment. Others like Helaine Markham are eyeing the long-term potential of SpaceX, particularly its space-related ventures, expressing hope for a legacy investment that could benefit future generations. As interest in space continues to grow among investors, Maurits Pot, CEO of a leading space-themed ETF, believes numerous space-related companies will emerge in the S&P 500 by 2030. He emphasizes that the upcoming IPO is just the beginning of a larger trend and cautions against viewing it solely as a flipping opportunity. As the IPO date draws near, SpaceX remains a focal point in discussions on investment platforms and forums, highlighting both the excitement and the caution that characterize this pivotal moment in the financial landscape.