A leading stock picker believes that Australian investors eager to secure a stake in Elon Musk's SpaceX are being driven by a massive fear of missing out, commonly known as FOMO.
SpaceX's upcoming public listing
The prominent rocket, satellite, and artificial intelligence company is expected to go public on June 12 on the tech-heavy Nasdaq. One avenue for Australian investors to acquire shares in SpaceX is through Pengana Capital's Private Equity Trust, listed on the ASX.
Russell Pillemar, co-founder of Pengana, noted that interest in the stock has surged as the company's projected valuation has climbed to approximately US$1.8 trillion (A$2.5 trillion).
"There's been a bit of a FOMO experience happening here as people have seen subsequent rounds of SpaceX being marked up at a rapid, rapid rate," Mr. Pillemar told SkyNews.com.au. "People have started calling and asking how can we get exposure, where does this exist etc., and that's ramped even more so as they've come to the initial public offering."
Valuation growth and retail interest
SpaceX's valuation has risen from US$800 billion in late 2025 and from a significantly smaller US$33 billion in 2019. Meanwhile, Australian retail investors are expected to contribute up to A$1 billion for SpaceX's initial public offering.
Commonwealth Bank of Australia's CommSec, the nation's largest retail trading platform, has been appointed as one of the retail brokers for SpaceX. Investors hoping for exponential returns similar to those enjoyed by early buyers of other major tech stocks have been advised to temper their expectations.
For context, those who invested in companies like Tesla or Nvidia ten years ago would have seen their stocks skyrocket by about 2,900% and 21,000%, respectively. Mr. Pillemar emphasized that SpaceX's already high valuation at the time of going public makes this a different scenario.
"This is very different, and I think investors need to be aware of that," he said. "When you come into SpaceX, be aware that the huge amounts of money have already been created, and it's difficult to take a $2 trillion company and create rapid value accretion from that. It doesn't mean it's not a good investment—I think it's a great investment—but if you're looking to create rapid value creation, it's probably too late to do that."
Revenue and IPO details
SpaceX generated almost US$19 billion in revenue last year, driven by the rapid expansion of its satellite internet service Starlink. The company is looking to raise approximately US$75 billion for its IPO, which could potentially make it one of the largest stock offerings in history.
Nigel Green, CEO of global financial advisory firm deVere Group, suggested that the launch could test the depth of investor enthusiasm for AI and tech assets.
"Markets are about to discover whether investor appetite for AI and tech is as deep as many assume," Mr. Green said in a statement. "SpaceX alone is seeking one of the largest valuations ever attached to a newly public company."
He also questioned the massive market capitalization SpaceX is targeting, arguing it would be difficult to sustain.
"Markets are being asked to place an extraordinary valuation on a business that continues to invest aggressively and burn significant amounts of cash in pursuit of future growth," Mr. Green said. "At close to $1.8 trillion, investors are effectively pricing in years of success before much of that profitability has arrived."
