Jim Cramer Wants A 30% SpaceX IPO Pop, Not A Cerebras-Style Surge: ‘People Hang On To It And Buy More’

SpaceX’s shares are set to begin trading on the Nasdaq on Friday, with the company having raised $75 billion at a valuation of $1.77 trillion.

• Cramer contrasted SpaceX with Cerebras, noting the latter was about 20 times oversubscribed but ultimately failed to live up to the hype.
• Wedbush’s Dan Ives said during an interview with Bloomberg that the SpaceX IPO will be a watershed moment for CEO Elon Musk.
• Ives sees SpaceX as a broader data and AI story rather than a pure-play space company.

Jim Cramer on Friday said the ideal outcome for SpaceX (SPCX) IPO would be a modest first-day gain, arguing that it would encourage long-term ownership and avoid the speculative flipping that can follow blockbuster market debuts.

“SpaceX: We don't want an 89% pop like with Cerebras. We want a 25-30% pop which would be a great start. People hang on to it and buy more. Not flip it. Which must be avoided,” he said in a post on X.

The Cerebras Systems Inc. (CBRS) IPO last month saw the company raise $5.55 billion, with the shares soaring 89% on debut. However, the stock has plunged more than 35% since then.

While highlighting strong demand for SpaceX shares in another post, Cramer contrasted the company with Cerebras, saying the latter was about 20 times oversubscribed but that the deal ultimately failed to live up to the hype.

Ives Says SPCX IPO Will Be A Watershed Moment For Elon Musk

Dan Ives, Global Head of Tech Research at Wedbush, on Thursday said during an interview with Bloomberg that the SpaceX IPO will be a watershed moment for CEO Elon Musk.

“It’s going to be a watershed moment, not just for SpaceX, but for Musk… but I think the market is also trying to understand what the reception is going to look like, what the ripple effect is across the rest of tech,” he said.

Ives reiterated that the odds of Tesla Inc. (TSLA) and SpaceX merging are more than 80%, while adding that he thinks this is a part of the broader plan

“Anyone owning SpaceX, you’re buying it for the Musk factor. Many that bet against Tesla and Musk, going back a decade ago… that was proven historically wrong,” he added.

Ives sees SpaceX as a broader data and AI story rather than a pure-play space company.

Not Everyone Is Sold On SPCX IPO

Short-seller Jim Chanos said earlier this week that the $1.75 trillion valuation that SpaceX is aiming for is built on “hopes and dreams.”

Seabreeze Partners Management President Doug Kass said recently that he values SpaceX at a discount of nearly 50% to the offer price, at approximately $70 per share.

Morningstar analysts echoed similar sentiments in a note this week, valuing the SpaceX IPO at $63 per share, which is a discount of about 53% to the offer price.

SPCX Prices IPO

SpaceX priced its IPO on Thursday at a public offering price of $135 per share.

The company’s shares are set to begin trading on the Nasdaq on Friday under the ticker symbol “SPCX”.

SpaceX raised $75 billion through the offering, valuing the company at $1.77 trillion and catapulting it among the list of the world’s most valuable companies.

The Procure Space ETF (UFO) is up 119% during this period, while the Tema Space Innovators ETF (NASA) is up 46%.

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