Wall Street Brunch: SpaceX IPO, WWDC And CPI
Brandon Moser/iStock Editorial via Getty Images Brandon Moser/iStock Editorial via Getty Images Listen below or on the go viaApple PodcastsandSpotify SpaceXbegins tradingon the Nasdaq on Friday.
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(2:13) SpaceX (SPCX) is set to begin trading on the Nasdaq Friday after pricing what could be the largest IPO in history by valuation.
Reuters reported that the company hasalready received about $150B in orders, more than double the roughly $75B it is seeking to raise.
SpaceX is offering about 555.6M shares at $135 each, valuing the company at roughly $1.8T.
While demand has been strong, not everyone agrees with the valuation.
Aswath Damodaran, the NYU professor known as the "dean of valuation," estimatesSpaceX's equity value at closer to $1.3T.
Damodaran told The Wall Street Journal's Take On the Week podcast that a key point of disagreement is the company's assumptions about the size of its AI business, including xAI and Grok.
He argued that SpaceX's projections for the AI market stretch the bounds of plausibility.
Meanwhile, Apple (AAPL) kicks off its Worldwide Developers Conference on Monday, where investors will belooking for updates on Apple Intelligence, Siri and the company's broader AI strategy.
Wedbush analyst Dan Ives said the eventual monetization of Siri and AI could add another $75 to $100 to Apple's share price and is "not being factored into the current multiple." Wedbush has an Outperform rating and a $400 price target on the stock.
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