SpaceX IPO: Why Gene Munster Would Buy At The IPO Price — And ‘Potentially Minutes Later When It’s Higher’

• Short-term volatility is likely, but Munster tells CNBC that he expects the long-term narrative to remain intact.
• Munster sees the company’s fundamentals eventually overtaking near-term hype.
• Elon Musk’s influence remains a major part of the investment narrative, he says.

Deepwater Asset Management’s Gene Munster struck a bullish tone on Elon Musk’s rocket and satellite maker SpaceX ahead of its long-awaited initial public offering (IPO). He said while trading in the opening hours is likely to be noisy, trends could turn more constructive over the first week.

“In the first few hours, you really can’t read much into that initial trading,” Munster said on CNBC’s Squawk Box. He added that in “the first week, this is largely going to be positive,” driven by “the hype around what the potential is on this company.”

He also added that while early price action may be difficult to interpret, sentiment could support the stock as trading progresses beyond initial volatility.

Bearish Sentiment Viewed As A Contrarian Tailwind

Munster highlighted that investor positioning ahead of the IPO may actually support early trading strength rather than hinder it. He pointed to growing skepticism and third-party research suggesting SpaceX could be worth significantly less than its IPO valuation.

“I think all that is actually bullish for that initial day of trading,” he said, referring to negative sentiment building into the listing.

Munster said SpaceX is strong both in the near and long term, citing rapid revenue growth, a large total addressable market, space, AI, national defence and Elon Musk. He added that these factors together support his view that the stock is likely to move higher.

However, he also cautioned of a transition phase between sentiment-driven trading and long-term fundamentals, saying there needs to be “kind of a handoff” between near-term hype and long-term substance.

Munster Says He Would Buy At IPO Price

When asked if he would buy at the IPO price, Munster was unequivocal. “Absolutely. I mean, there’s no question,” he said, referencing the company’s around $1.8-trillion valuation and its positioning across AI and national defense.

He added that SpaceX’s role in early-stage AI and comparisons with other large technology companies support his bullish stance.

“I am hands on a buyer on that pre-IPO number, recognising that there is going to be a ton of noise,” Munster said. He also emphasized that even after a potential early pop, he would still remain interested, “potentially minutes later when it’s higher.”

In a separate post on X, Munster added a longer-term framing for SpaceX’s public market debut, writing, “Most of the talk around the $SPCX IPO is how it trades in the first five days. What’s most important is how it trades in the first five years.”

AI Strategy And Compute Deals Still Evolving

On SpaceX’s AI-related partnerships, including deals with Google and Anthropic, Munster described them as opportunistic capacity arrangements rather than fully stable long-term contracts. He stated that while these deals may add incremental revenue, the longer-term structure remains uncertain, citing termination clauses in some agreements.

“The longer term piece is to be determined,” he said, adding that investors should not assume full visibility into these relationships.

SpaceX IPO Details

SpaceX publicly disclosed a fixed IPO price of $135 per share on June 3. The company is targeting a $75-billion raise and a valuation of above $1.77 trillion, as it prepares for a June 12 Nasdaq debut.

On Stocktwits, sentiment around SPACZZX was ‘extremely bullish’ at the time of writing. 

For updates and corrections, email newsroom[at]stocktwits[dot]com.