How to Ride the SpaceX IPO Wave

SpaceX IPO Plans and Investor Speculation

SpaceX, the aerospace and defense company founded by Elon Musk, is reportedly preparing for an initial public offering (IPO) later this year. This potential move has sparked interest among investors who are eager to capitalize on the anticipated growth of the company. However, there are risks involved, as some investors are already attempting to profit by purchasing funds that hold pre-IPO shares of SpaceX.

Funds with Significant SpaceX Exposure

Several investment funds have substantial exposure to SpaceX, which has led to increased volatility in their performance. The Destiny Tech100 closed-end fund holds 16.2% of its assets in SpaceX, along with an additional 3.5% in Musk’s xAI, which recently merged with SpaceX. Another fund, Fundrise Growth Tech, which recently launched on the New York Stock Exchange, has 5% of its portfolio invested in SpaceX. These funds have experienced significant fluctuations, surging on certain days and then dropping sharply. For example, Fundrise saw a drop of over 50% by the end of the week. Despite these swings, both funds still traded at premiums to their net asset value, suggesting that investors may have overvalued them.

Alternative Investment Options

Investors seeking exposure to SpaceX do not necessarily need to wait for the company to go public. Several mutual funds and exchange-traded funds (ETFs) have significant stakes in SpaceX. Cathie Wood’s ARK Venture interval fund, for instance, has nearly 18% of its portfolio invested in SpaceX. Other major financial institutions, such as Baron Capital, Fidelity, BlackRock, and Neuberger Berman, also own pre-IPO shares of the company. Additionally, ETFs like Baron First Principles, ERShares Private-Public Crossover, and KraneShares Artificial Intelligence and Technology offer access to SpaceX’s stock. While these options provide more accessible ways to invest, they come with their own set of risks and uncertainties.

Global Market Volatility

Global stock markets experienced a decline due to President Donald Trump’s threat to bomb power plants if Iran did not reopen the Hormuz Strait. Brent crude oil prices rose, while gold prices fell. However, Trump later called off the strikes, claiming “productive talks” had begun, which initially boosted stocks and lowered oil prices. The situation took a turn when Iran denied any talks, leading to a sharp decline in stock markets. Trump then ordered more troops to the region, causing the S&P 500 to hit a six-month low. By the end of the week, the S&P 500 had fallen 2.1%, the Dow industrials 0.9%, and the Nasdaq Composite 3.2%, with the latter two entering correction territory.

Company Updates

Apollo Global Management and Ares Management have limited redemptions at some private-credit funds. The U.S. government will pay TotalEnergies $928 million to buy back leases on wind farms off New York and North Carolina. In another development, a New Mexico jury found Meta Platforms guilty of failing to protect children online, while a Los Angeles court ruled that Meta and YouTube designed addictive social media platforms. Additionally, a court blocked the Pentagon from designating Anthropic as a supply-chain risk.

Mergers and Acquisitions

Merck is acquiring cancer biotech Terns Pharmaceuticals for $5.7 billion in cash. The Financial Times reported that Sumitomo Mitsui Financial Group is working on a plan to take over Jefferies, which is involved in the First Brands bankruptcy. However, SMFG has denied the report. The Wall Street Journal mentioned merger talks between Estée Lauder and Spain’s Puig, while Bloomberg reported that Pernod Ricard and Jack Daniel’s owner Brown-Forman were discussing a potential deal.

Upcoming Economic Data

On Wednesday, April 4, the Census Bureau will release retail and food service sales data for February. Economists expect a 0.4% month-over-month increase, following a 0.2% decline in January. Excluding autos, retail sales are projected to rise 0.3%. The Institute for Supply Management will also release its Manufacturing Purchasing Managers’ Index for March, with a consensus estimate of 52.3, slightly higher than the previous reading. On Friday, April 3, equity markets will be closed for Good Friday, and the bond market will close early at 12 p.m. ET. The Bureau of Labor Statistics will release the jobs report for March, forecasting a 55,000 increase in nonfarm payrolls, with the unemployment rate expected to remain unchanged at 4.4%.

Key Financial Figures

The U.S. debt reached $39 trillion in mid-March, up from $38 trillion five months ago, with annual interest payments exceeding $1 trillion. Approximately 40% of electricity powering U.S. data centers comes from natural gas. There are 430,000 U.S. households worth $30 million or more, with 74,000 of them valued at over $100 million. The total Wall Street bonus pool for 2025 is expected to reach $49 billion, marking a 9% increase and setting a record since 1987. The average bonus is estimated at $246,900.