Why Missing Out on SpaceX’s IPO Could Be Beneficial

Investors hoping to buy into SpaceX’s initial public offering (IPO) face challenges in obtaining shares at the offering price. Elon Musk’s company has many workers on the brink of significant financial rewards, while individual investors scramble for shares priced at $135.

The demand is so high that brokerage firms have resorted to lottery systems for $135 shares. However, if you’re experiencing FOMO, fear of missing out, it’s important to know that skipping the immediate purchasing frenzy may be wise. Instead, embracing JOMO, the joy of missing out, might be advantageous.

SoFi, a brokerage firm offering access to the IPO, has shared varied outlooks over time. In 2024, its communication described the opportunity for indirect access to SpaceX through private-market funds. A year later, guidance was offered about avoiding FOMO trading.

Some investors may pursue quick profit by buying shares at $135 and selling them at a higher price, provided they circumvent lockup periods and brokerage penalties. Conversely, long-term buy-and-hold strategies may not be as rewarding, depending on how the stock performs over time.

Financial analysts note the daunting price-to-sales ratio at SpaceX. Morningstar values the stock at $63, suggesting the initial $135 pricing carries risk. If this valuation holds true, restraint in the IPO frenzy may prove advantageous.