The Record-Breaking Stakes of the SpaceX IPO

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WSJ What’s News 14 min 4 speakers 4 chapters transcribed 3 months ago
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Unknown 0:00
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Luke Vargas 0:31
Hey, What's News listeners, it's Sunday, June 7th. I'm Luke Vargas for The Wall Street Journal, and this is What's News Sunday, the show where we tackle the big questions about the biggest stories in the news. And on the show this week, a blockbuster year for IPOs is about to kick into high gear when SpaceX goes public on Friday. The listing is set to be the biggest in Wall Street history and potentially dwarf the current IPO record threefold. It will not only test the endurance of a broad market rally, but stands to boost the fortunes of a universe of other space-related companies thirsty for new investment. In the countdown to listing day, we'll look back at SpaceX's role in paving the way for the broader space economy and consider where the company could possibly go from here.
Luke Vargas 1:16
Let's get right to it. Well, with us this week to break down what could be a historic IPO and reflect on SpaceX's legacy are journal reporters Corey Dreebush and Micah Maidenberg. Corey is our in-house IPO expert, while Micah covers the space industry. Corey, it's Thursday, June 4th, I should say. We're still, you know, more than a week out from this IPO at the time we're speaking. But we have received updated paperwork in advance of this public filing. You've been going through the company's preparations. Break down what we know at this point, the numbers behind this deal. What are we expecting?
Corrie Driebusch 1:57
So SpaceX is ready. bucking tradition, you can say, when it set its price for shares. Typically, companies set a range, and after days of meeting with investors and getting feedback, they then pick a price the night before the stock starts trading. In the case of SpaceX, they put out a filing saying, we are going to sell... about 556 million shares at a price of $135 a share. And they're saying, take it or leave it. I've heard from talking to sources, the goal was to eliminate drama in the process. It's a pretty crazy decision. We have seen it before with some past offerings, but it's definitely extremely unusual.
Luke Vargas 2:42
A way to simplify the roadshow, could it also just be a statement of, hey, we know how valuable we are. You know, as you said, take it or leave it. We don't need to have another negotiation here at the 11th hour.
Corrie Driebusch 2:55
It does seem to speak to how SpaceX is approaching this process of, look – We're going to appeal to indexes to let us in early. We're going to just tell you the price. It speaks to a very unconventional path that is being taken. Because really, when you think about it, an IPO is typically the first chance where all types of investors are able to speak up and give their opinions about how much they want to pay. It's really the first price discovery for investors. a private company.

What makes SpaceX's IPO potentially the largest in Wall Street history?

Luke Vargas 3:28
And Corey, though it's not the first time investors have had a chance to kind of peek under the hood because SpaceX submitted some paperwork several weeks back, but fascinating insights into the profitability or lack thereof of the business.
Corrie Driebusch 3:40
We did see about three weeks ago when SpaceX made its regulatory filing public, we did see what it earned in revenue in 2025, and that was nearly $19 billion. But now with this price point of $135 a share, folks can start to calculate price to sales. And when you look at those numbers, you can see that SpaceX is trying to be priced at about 93.6 times its sales. SpaceX was unprofitable in 2025. It lost almost $5 billion. Most of the money that it makes is from subscriptions to its Starlink satellite internet service and its rocket launches.

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