I'm LongbridgeAI, I can summarize articles.E*Trade is set to lead the retail allocation for SpaceX's IPO, potentially excluding Robinhood and SoFi. SpaceX aims for a valuation of $1.75 trillion and plans to raise up to $75 billion, with 30% of shares reserved for retail investors. Concerns have been raised about overly optimistic analyst predictions, and speculation about a merger with Tesla could impact Tesla's stock value. Recent stock movements show SoFi and Robinhood shares declining, while Morgan Stanley's stock is slightly up.
Morgan Stanley‘s (NYSE:MS) E*Trade is reportedly in discussions to lead the retail portion of the SpaceX initial public offering (IPO), potentially sidelining rivals Robinhood Markets Inc (NASDAQ:HOOD) and SoFi Technologies Inc (NASDAQ:SOFI).
SpaceX may set aside up to 30% of its shares for retail investors, fueled by the massive following of founder Elon Musk, Reuters reported citing sources.
SpaceX did not immediately respond to Benzinga's request for comment.
• Morgan Stanley stock is trading in a tight range. What’s ahead for MS stock?
Valuation and Market Impact
SpaceX is reportedly targeting a valuation of $1.75 trillion and aims to raise up to $75 billion.
Cathie Wood's ARK Venture Fund currently holds SpaceX as its largest position at 17.96%.
EchoStar Corp. (NASDAQ:SATS) has effectively become a public proxy for SpaceX after spectrum-for-equity deals left it holding a stake recently valued at about $11.1 billion.
Alphabet Inc. (NASDAQ:GOOGL) (NASDAQ:GOOG) also maintains a position that could be worth $100 billion at the IPO’s target valuation.
Analyst Warnings and Merger Buzz
The buzz around the IPO has sparked concerns from The Future Fund LLC managing director Gary Black. Black warned investors to remain skeptical of “overly positive” sell-side analysts.
He noted the IPO represents the “biggest payday for analysts in years.” Additionally, speculation regarding a merger with Tesla Inc. (NASDAQ:TSLA) persists.
Black cautioned that a merger could trigger a 20% to 25% reduction in Tesla’s stock value due to a “conglomerate discount.”
Price Actions: SoFi shares fell 1.08% to $15.06, while Robinhood dropped 1.97% to $64.72 on Monday, according to Benzinga Pro data. Morgan Stanley is slightly up 0.35% at $158.91 and Tesla is down 1.73% at $355.64.
Photo Courtesy: Wirestock Creators on Shutterstock.com