Why Missing Out on SpaceX’s IPO Might Be Beneficial for You

Elon Musk is on the verge of becoming a trillionaire, largely due to SpaceX’s financial success. Employees of SpaceX are also poised to gain significantly as the company prepares for its initial public offering (IPO). Many individual investors are eager to buy shares at the opening price of $135, to the point where some brokerages are essentially holding lotteries for these opportunities.

Understanding Your Position

If you’re not able to purchase shares at the offering price, don’t feel disheartened. Joy of Missing Out (JOMO) might serve you better than the Fear of Missing Out (FOMO). Participating in this IPO isn’t your only path to financial success.

Perspectives from Major Brokerages

SoFi, a brokerage firm allowing some customer participation in the IPO, has offered mixed advice. In 2024, it used encouraging language to describe indirect access to SpaceX through private-market funds. By 2025, the firm had also issued guidance on avoiding FOMO trading.

Potential Risks and Rewards

Investors who successfully buy at $135 might look to sell immediately at a higher price, provided they aren’t bound by lockup periods or penalties from their brokers. This strategy, however, involves a significant risk and investment.

In contrast, buy-and-hold strategies might not yield the same potential benefits. As noted by financial experts, SpaceX’s price-to-sales ratio is exceptionally high. According to Morningstar’s valuation, SpaceX stock might be valued at $63. If this analysis is correct, you may not regret missing the opportunity to buy at $135.

Reflect on these dynamics when considering your investment approach. There are always alternative paths to financial growth, and not participating in every opportunity might serve your long-term goals better.