space x Other mega-cap IPOs may accelerate.
According to Cashmere Capital Management’s chief investment officer, this could emerge as the ultimate blueprint for Silicon Valley. Especially when it comes to expectations, human and OpenAI Debut in public.
“I wouldn’t be at all surprised to see a similar dynamic play out with some of these (IPOs) coming up in the coming months,” Nick Ryder told CNBC’s “ETF Edge” this week.
Mr. Ryder’s firm, which provides financial advice to individuals and companies, maintains that market conditions will determine whether future megacap IPOs take a page out of SpaceX’s plans.
“We had a pretty historic two-month (or) three-month rally for the stock market…which was impacting (SpaceX),” Ryder added. “It’s very difficult to predict what that will look like when these other mega IPOs eventually come to market because the environment may be different.”
Since SpaceX opened to the public
SpaceX went public on June 12th with a historic market capitalization of more than $2 trillion, and has soared 53% from its opening price of $150 in just three business days. However, the big profits did not last long. As of Wednesday’s close, the aerospace and satellite company’s stock has risen nearly 17% since going public.
Incorporating an index
It’s also worth noting that SpaceX was one of the earliest stocks added to major indexes. The stock is already included in the Russell 1000 and will be added to the Nasdaq 100 after the market closes on July 6th.
Arne Noack is responsible for FTSE Russell’s Americas equity and multi-asset indexes. He believes the index itself, not SpaceX, is the true blueprint for future IPOs.
“As an index provider, (we) have a clear blueprint for everyone to see…which means you are eligible for the fast track. If you meet certain criteria, you may be eligible for inclusion in the index,” Noack said.
