Space trading is off to a good start. Not only has the volume been outstanding. Bloomberg reports $350 billion and demand from institutions and retail. But price discovery has pushed the price higher from that fixed price of 135, reflecting that the hype is real even at the elevated valuation.
It’s encouraging that thus far, we haven’t seen major concerns around market structure and/or trading stops. And in fact, the broader market is still higher. But some of the profit raising for people to buy the IPO could have helped push memory semi stocks lower earlier in the week. So concerns on volatility are not behind us.
We’ve got two more potential IPOs coming. A series of expiring lockups where insiders can sell their shares and index buying ahead of us.
Beyond these ups and Downs. There are two longer term implications to consider. The first is the likely transformation at the mega-cap level in US equities as more float or share is available to the public comes to market. We’ll have new companies influencing the largest companies in the market, the Mag Seven potentially, which could provide a measure of intra tech diversification.
The second implication is the greater transparency each IPO offers into AI.
One of the most persistent questions investors have is the true nature and cadence and dollars behind AI implementation and demand. So the regular insight we could get into model demand from OpenAI and Anthropic, and even space from their regular earnings could help clarify that question, potentially giving investors greater confidence in the AI narrative overall, or vice versa. Want more in space. Stay tuned for our Q3 market outlook hitting LinkedIn at the end of June.
This is taking stock within Power.
