- SpaceX opened for trading Friday at $135/share, valuing the company at ~$1.78T and making Musk potentially the first trillionaire.
- Broadcom stock tanked 12% after issuing underwhelming Q3 AI chip guidance.
- S&P 500 is down 2.6% Friday, with an equal weekly loss of 4.7% after snapping a nine-week win streak.
- 90% of $28.5T TAM projections for SpaceX come from unproven AI/data-center-in-space business rather than traditional rocketry or Starlink.
- LPL Financial head of equity research warns that the ride between here and the stars may be too turbulent for some due to heavy leverage on unproven tech.
- MassMutual strategy head called the current market pause a "healthy pause," stating it is not about fundamental changes to long-term AI thesis, just very high expectations.
- Concerns surrounding Oracle earnings could confirm the AI capex slowdown narrative if they also disappoint next week.
SpaceX's debut at $135/share on Friday values the company at approximately $1.78 trillion, placing Elon Musk on the brink of becoming the first trillionaire. However, this announcement arrives amid a plunging stock market, with the S&P 500 down 2.6% and Nasdaq decreasing by 4.2% over the week.13
Broadcom also faced significant challenges, as its stock fell by 12% following a cautionary outlook on AI chip guidance for Q3, leaving its annual forecast unchanged. Research from LPL Financial indicates troubling times ahead as they caution about potential turbulence in tech investments, pointing out that the ride may be "too turbulent for some" given the heavy reliance on untested technologies.25
The gravity of the situation was further highlighted by a remark from a strategy head at MassMutual, who described the current market state as a "healthy pause," emphasizing that it doesn't signify major shifts in the long-term AI narrative, just excessively high expectations built around it. Additionally, if Oracle underperforms in its upcoming earnings report, it could validate concerns surrounding a slowdown in AI capex.67
In summary, while SpaceX's initial trading reflects optimism, broader market indicators suggest caution as investors navigate a landscape marked by volatility and heightened expectations.
“SpaceX's trading debut at $135/share could position Musk as the world's first trillionaire, valued at ~$1.78T. However, recent market trends show a decline in investor confidence with the S&P 500 down 2.6% and Broadcom stock plummeting 12%.”
