SpaceX IPO: A Long Wait
Space is cool and its been a long time since we have had anything to cheer for and watch with anticipation on that front. Has it really been 45 years since we put the last man on the moon?
SpaceX seems to be the front runner to get man back into space with the very long term goal of landing on Mars and actually trying to colonize it. Obviously, such a plan is something that will have to take place over the next 20+ years and that is exactly why Elon Musk’s SpaceX will try to stay a private company for as long as possible.
Working up to that ultimate mission, SpaceX will have to do a mindboggling amount of innovation and will likely suffer many heartbreaking setbacks along the way. Rockets will be lost and probably even lives will be lost at some point. Space may be cool but it sure is dangerous.
Right now, SpaceX actually is a profitable company making money by shuttling things into space for commercial enterprise along with doing things for NASA that they used to do themselves. If it can remain profitable and progress along Musk’s timeline, it will delay the need to go public which is what he wants. Although an IPO would bring lots of new money with which to invest in new technologies and projects, it would also bring the scrutiny of stock holders down on the company. Stock holders want profits now and Musk would like to go about his daily business without that ever present burden of satisfying share holders.
Wall Street is notoriously short sighted and it has never been worse than it is now in that respect. Today’s young investors have been brought up on the Internet which encourages frequent trading for low fees. This means investors can go in and out of stocks on a whim and “investing” has become “trading” for many. Additionally, much of the market is controlled by computer algorithms which certainly don’t take a companies long term goals into consideration when making trades.
The appetite for a SpaceX IPO will grow as the years pass, and I am convinced when the time comes, there will be no shortage of people wanting to buy SpaceX stock. As one of my readers on my Facebook page put it when asked the question about whether he would buy the stock, he responded with a “Hell Yeah!”. I think that pretty well sums up the publics appetite for a space IPO but for now everyone will have to patiently wait.