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SPACEX IPO: BUY THE FUTURE OR WAIT FOR THE PULLBACK?

A lot of investors are wondering whether a SpaceX IPO could mirror Meta Platforms META.O, which had a rocky debut and fell sharply after pricing. In emailed comments, Nancy Tengler, CEO/CIO at Laffer Tengler Investments, understands the concern. It looks expensive, and fundamentals alone may not justify the valuation. But she argues that misses the bigger point.

To her, this isn’t a pure fundamental story -- it’s more like Amazon.com AMZN.O in its early days, a company that could fundamentally change how we live. The real question, she says, is your time horizon and whether you believe in the technology.

Her team is investing with a three-, five-, even 10-year view, focused on themes like space, robotics, and AI. So if the stock prices at $135 and trades down to $100, that wouldn’t shake their conviction -- they still want exposure. A much hotter open, say $250, might give them pause.

She also sees a unique edge: a fully integrated AI ecosystem spanning data, models, hardware, and engineering. Longer term, the real upside could come from breakthroughs like reusable rockets or even space-based data centers. She also points to Elon Musk’s loyal retail investor base, which could help stabilize the stock. The possibility of eventually merging Tesla into SpaceX only adds to the long-term appeal.

Jay Woods, chief strategist at Freedom Capital Markets, urges caution on chasing a potential “blast-off.” He says the setup looks typical for a high-profile IPO -- a strong initial pop followed by some giveback.

His bigger concern is investor behavior. Early retail buyers may hold on too long, while those who miss the IPO could end up chasing after a run-up -- often right as momentum fades.

Woods believes patience will pay off, with better entry points likely after a few weeks or even an earnings cycle. For those feeling FOMO, he suggests easing in with a small position -- maybe around 10% -- leaving room to add if the stock pulls back.

(Meanwhile, SpaceX shares are indicated to open around $171 a share, up from the $135 price.)

(Terence Gabriel)

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