SpaceX IPO set to dominate U.S. market focus as space stocks and defensives rally

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SpaceX IPO market focus

Highlights

SpaceX is set for the largest IPO ever on Nasdaq Friday under SPCX, with an expected value of $75 billion, surpassing 2024's total IPO raised amount.
Oppenheimer issued a buy rating and $190 price target for SpaceX, while ARK Venture Fund—holding 11% in SpaceX—hit a record high and is up over 70% year-on-year.
Consumer Staples led S&P sectors this week, up almost 2%, with Casey's General Stores, J.M. Smucker, and Dollar General among top performers.

SpaceX listing draws market attention

As reported by CNBC, SpaceX is set to become a public company on Nasdaq on Friday under the symbol SPCX, in what is billed as the biggest initial public offering ever. The network said the company is expected to carry an IPO value of about $75 billion, more than double the nearly $36 billion raised by 71 IPOs so far this year.

CNBC said Morgan Brennan is due to interview Chief Operating Officer Gwynne Shotwell on Friday morning, while the outlet's data team is also tracking this year's IPO activity. Oppenheimer initiated a bullish stance on Thursday with a buy rating and a 12-month price target of $190 for SpaceX.

Interest in the listing is already lifting funds with large private exposure to the company. ARK Venture Fund, which holds SpaceX as its largest position at roughly 11% of the portfolio, reached a new high last week and is up 4% over a month and more than 70% over a year, while Baron Focused Growth Fund, another major holder, also touched a new high and is up about 8% in a month.

Space and defensive stocks lead broader moves

Across listed space names, recent momentum remains mixed after sharp gains. Iridium Communications hit a new high last week but now sits 7% below that mark, though the shares are still up more than 100% in three months.

Virgin Galactic has surged 96% in a month but is down 35% from its June 1 high, ending Thursday at $5.73, well below its April 2021 peak of $634.86. Intuitive Machines rose 15% on Thursday and is up 66% in three months, even as it remains 34% below its May high, while Telesat, AST SpaceMobile, Planet Labs and Rocket Lab are also trading below recent peaks.

Outside the space trade, a range of stocks are hitting fresh highs, including Ralph Lauren, MetLife, State Street, DaVita, CSX, Sandisk and Steel Dynamics, while Citigroup is trading at levels not seen in 18 years and Prologis is at a four-year high. Consumer Staples is the strongest S&P sector of the week so far, up almost 2%, led by Casey's General Stores, J.M. Smucker and Dollar General, with only Tyson Foods, Archer-Daniels-Midland, Hershey and Altria in negative territory for the week.

Our earlier coverage of SpaceX’s planned IPO highlighted that investor attention is centering on Starlink as the company’s largest revenue driver and only profitable segment. We noted signs of pressure in the unit’s economics, including falling average revenue per user, as well as the operational reliance on Starship for expansion and intensifying competition in broadband markets.

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