Uday Kotak questions SpaceX valuation, calls IPO a 'mega bubble' test

Key facts

• SpaceX's market capitalization exceeded $2.2 trillion following its Nasdaq debut.
• The company's stock surged 30% in early trading after its IPO.
• Retail traders debated the valuation, with some calling it a 'mega bubble' and others expressing confidence in its market position.
• Elon Musk was compared to P.T. Barnum by some traders critical of SpaceX's promises.

SpaceX made its debut on the Nasdaq, with its stock surging 30% in early trading and pushing its market capitalization above $2.2 trillion. The offering courted retail traders, setting aside more shares than usual at the IPO price. This move has sparked a significant debate among online traders regarding the company's valuation. Some, like Uday Kotak, questioned whether the IPO represents a bet on humanity's future or a 'mega bubble.'

Retail traders shared mixed reactions. Noor Al, a moderator for r/WallStreetBets, expressed optimism, noting the unprecedented discussion and excitement, and believing it could be a good trade for those who secured IPO allocations. Conversely, some traders were critical of Elon Musk's promises, with one user comparing him to P.T. Barnum and questioning the viability of SpaceX's products beyond a few cars and a functional rocket.

However, bullish sentiment also emerged. Retail trader Casey Dyer stated he was "all in" on the IPO, citing SpaceX's monopoly on rocket technology and the potential of space-based data centers. Concerns were also raised about original investors potentially selling shares, which could dampen IPO momentum. Some bearish voices indicated they were observing the debut to see if the stock would crater, with one user discouraging family and friends from investing.