Former Goldman analyst flags retail risk in potential SpaceX IPO

Former Goldman analyst Dom Kwok said features of a potential $2 trillion SpaceX IPO suggest retail investors could end up serving as exit liquidity, while Steve Eisman said he would not short the stock immediately after a listing but is cautious on its IPO prospects. Kwok pointed to reports that underwriters may allocate up to 30% of SPCX shares to retail investors, versus a more typical 5% to 10%, alongside the end of the U.S. pattern day trader rule and Fidelity lowering its minimum account threshold from $500,000 to $2,000. Separately, Bloomberg reported on June 7 that a listing could give thousands of SpaceX employees their first chance to sell shares publicly, prompting advisers to discuss liquidity, wealth management and tax-planning questions with clients. Eisman said in a Monday CNBC interview that the prospectus was a warning sign and reiterated that his concern centers on SpaceX's spending profile, citing capital expenditure rising from 42% of revenue in fiscal 2023 to 215% in the most recent quarter, which he said points to a shift toward AI infrastructure and services in a crowded market with limited differentiation.