"By Friday, however, the macro narratives were entirely overshadowed by the excitement of the SpaceX IPO. It’s an IPO that will go down in history for a remarkable combination of reasons—from its sheer scale ($75 billion, almost three times the previous largest IPO) and the $1.8 trillion valuation (which places it immediately, on day one, as the seventh-most-valuable US company), to challenging the traditional playbook on investor allocation, price discovery, and fast-tracked index inclusion. It has also triggered an unprecedented wave of wealth creation, from Elon Musk’s new trillionaire status to some 4,400 millionaires minted among the firm’s current and former employees. All this for a company that generates no profits, is highly valued, and carries enormous key-person risk."
Excerpted from the weekly substack email from Mohamed A. El-Erian (boldface added).
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