The biggest news item this week was the record-breaking SpaceX IPO that made Elon Musk the world's first trillionaire. For context, you'd need to earn $1 million a day for 2,740 years to get to $1 trillion.
But what does all this mean for the average retail investor? SpaceX is just the first in what promises to be a year of incredibly high IPO valuations for tech companies, including Claude-owner Anthropic and ChatGPT-creator OpenAI.
Experts and analysts concur on one point – history suggests waiting out the "euphoria" phase, which could mean a delay of six months, if not more.
As for those on the slow and steady path of investing in index funds, these sparkly additions can skew holdings. Nasdaq introduced a fast-track scheme to allow mega-IPOs such as SpaceX to be added to the Nasdaq 100 after 15 days of trading, without a waiting period. S&P 500, however, is sticking to its rules, which include a one-year waiting period, consistent profitability and a public float requirement.
Why is this important? Of SpaceX's three divisions, only the connectivity segment powered by Starlink was profitable in the first three months of the year. SpaceX's IPO filing showed a net loss of $4.28 billion in the first quarter of this year. Last year, the company recorded a $4.94 billion loss on revenue of $18.7 billion.
Did you invest in the SpaceX IPO? If you have a personal investment story to share, email us at pf@thenationalnews.com.
Dona Cheriyan, Digital Platforms Editor
UAE exchange houses and banks record sharp rise in salary processing as deadline passes
Exchange houses and banks reported a surge in payroll activity in the first week of this month as new rules requiring private sector employers to pay salaries by the first of each month came into force.
The broader economic implications of a unified salary cycle are expected to be substantial, experts said, with a marked impact on retail spending, remittances, bank deposits and real estate.
Read the full story here.
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