SpaceX is set to launch its IPO on June 12, allowing retail investors to buy shares for the first time. The company aims to raise $75 billion, potentially making it the largest IPO in history. With a market valuation of $1.8 trillion, SpaceX could rank among the world's 10 most valuable firms.
Starlink, SpaceX's satellite internet business, contributed $11.4 billion to the company's $18.7 billion revenue last year, making it the primary profitable division. However, the launch business posted losses of $657 million.
The company's AI business, xAI, is currently behind its competitors in AI technology, market share, and financial performance. Despite this, a recent deal involving Anthropic could improve xAI's outlook.
The Motley Fool created three scenarios to show what a $5,000 SpaceX investment could be worth after five years. In the most optimistic scenario, the stock could deliver an average annual return of 15%, growing to approximately $8,745. In the base-case scenario, the stock generates an average annual return of 7%, growing to around $6,554. In the pessimistic scenario, the stock would lose about 15% per year, shrinking to roughly $2,638.
