Cramer Warns on SpaceX IPO; Investors Take It as Buy Signal

Television host Jim Cramer cautioned retail investors against buying SpaceX at the IPO price of $135 a share, which values the company at about $1.77 trillion. The offering is set to begin trading on Nasdaq on June 12 under the ticker SPCX and was reported to be roughly four times oversubscribed.

Cramer warned that a large opening-day surge driven by market orders from retail buyers could push the price above levels justified by early purchasers and leave late buyers exposed to a sharp correction. He described a massive first-day spike as ‘the last thing SpaceX needs’ and said a brief valuation ‘rivaling the world’s largest companies’ rarely ends well for buyers who chase the open.

He previously raised concerns that an IPO feeding frenzy could be ‘destructive’ for the broader market and highlighted the risk of short-term speculative selling shortly after trading begins.

Some investors interpret Cramer’s caution as a contrarian buying signal. They point to past episodes in which his public skepticism was followed by rallies, including his 2017 remarks about bitcoin before a major price rise, his 2021 sale of most of his bitcoin holdings prior to a rebound, and a 2024 warning ahead of U.S. spot bitcoin ETF launches that preceded significant inflows. A structured product called the Inverse Cramer Tracker ETF (SJIM) was introduced in 2023 to take positions opposite his recommendations.

The IPO will give public investors direct exposure to SpaceX’s corporate bitcoin holdings. The company holds 18,712 bitcoin, valued at roughly $2 billion at current prices, and analysts are assessing what the listing and that crypto exposure might mean for bitcoin demand and investor allocations.

Market participants will watch the opening price, the mix of market and limit orders, and any immediate selling pressure to gauge how the stock trades in its first sessions.