SpaceX IPO: 2 Alarming Statistics Investors Must See Before Buying the Stock

SpaceX will list shares on the Nasdaq Exchange later this month; it will be the largest initial public offering (IPO) in U.S. history.

SpaceX's initial price-to-sales ratio will be somewhere around 103, which is 40% higher than the most expensive stock in the S&P 500.

Since listing shares, the 10 largest U.S. IPO stocks on record has underperformed the S&P 500 by 127 percentage points.

SpaceX will make history later this month, when it becomes the largest initial public offering (IPO) by market value in U.S. history. The company reportedly plans to target a $2 trillion valuation. Previously, Meta Platforms was the largest U.S.-based IPO, with an initial market value of $81 billion.

SpaceX will trade on the Nasdaq Exchange under the ticker SPCX, and the company may list shares as early as June 12, according to Reuters. The IPO, likely to be a blockbuster event, is expected to draw particularly strong demand from retail investors, many of whom admire CEO Elon Musk.

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The market is so eager to own stock in the rocket and satellite company that the S&P 500 (SNPINDEX: ^GSPC) is considering rule changes that would fast-track SpaceX's inclusion in the index. But investors need to see two alarming statistics before purchasing shares.

SpaceX reportedly plans to go public with a market capitalization near $2 trillion, according to Bloomberg. The company reported $19.3 billion in sales over the past four quarters, which means its price-to-sales (P/S) ratio will be somewhere around 103, perhaps even higher if the stock pops on the first trading day.