I'm LongbridgeAI, I can summarize articles.SpaceX's upcoming IPO, valued at over $1.7 trillion, surpasses the combined valuation of all 12 S&P 500 aerospace firms. While analysts like Gene Munster and Ron Baron express bullish sentiment with long-term growth predictions, concerns remain regarding its high valuation and dual-class share structure. Goldman Sachs projects revenue exceeding $474 billion by 2030, contrasting with SpaceX's current $18.7 billion revenue against competitors' $500 billion.
The upcoming SpaceX IPO is touted to be the biggest public offering since Aramco in 2019. However, the more than $1.7 trillion valuation puts it further ahead than some of the biggest companies on the S&P 500 index, operated by the S&P Dow Jones Indices.
SpaceX IPO Is Bigger Than S&P 500 Aerospace Companies
Barron’s, in a report on Tuesday, said that the SpaceX IPO was worth more than all of the 12 aerospace and defense companies listed on the S&P 500 index, including RTX Corp (NYSE:RTX), Boeing Co. (NYSE:BA), Northrop Grumman Corp (NYSE:NOC), GE Aerospace (NYSE:GE) and more.
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The report said that the combined valuation of the 12 companies came in at approximately $1.5 trillion, which is less than the $1.77 trillion valuation touted by SpaceX in its S-1 filings with the Securities and Exchange Commission (SEC).
However, the companies generated approximately $500 billion in revenue, which was well over SpaceX’s reported revenue of $18.7 billion before the IPO.
Gene Munster, Ron Baron Bullish On SpaceX IPO
Industry analysts and experts have expressed bullish sentiments about the IPO, with Deepwater Asset Management‘s Gene Munster calling the IPO an exciting event for the tech industry.
He also said that SpaceX could emerge as a rival for Alphabet Inc. (NASDAQ:GOOGL) (NASDAQ:GOOG), but outlined that SpaceX had an edge because Google did not make rockets.
Investor Ron Baron also expressed bullish sentiment for the IPO, predicting that the Elon Musk-led company could go on to become worth $30 trillion in the future, prompting Musk to call him “smart.”
Goldman Sachs Group Inc. (NYSE:GS), which is the lead underwriter for the SpaceX IPO, reportedly shared with prospective investors that the company's total revenue could reach over $474 billion by 2030.
SpaceX IPO Casts Doubt
However, not everyone is bullish on SpaceX, with NYU Stern Professor Aswath Damodaran, widely known as the Dean of Valuation, saying that he would avoid participating in the IPO, citing concerns with SpaceX’s valuation, its $28.5 trillion market opportunity and other reasons.
Top Pension officials from New York and California have also criticized SpaceX’s IPO, accusing Musk of creating a management-favorable structure. SpaceX will incorporate a dual-class share structure, with Musk's Class B shares each worth 10 regular shares, holding significant voting power.
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