Institutions: SpaceX's surge raises concerns over a tech stock bubble

Glonghui June 17th｜Ipek Ozkardeskaya from Swissquote Bank wrote that after SpaceX's initial public offering last week, its stock price surged, signaling that the rally in tech stocks may have entered bubble territory. SpaceX closed on Tuesday as the fifth largest company in the world by market capitalization, rising nearly 50% from its IPO issue price of $135 per share. Ozkardeskaya pointed out that although SpaceX has not provided a profit outlook for this year and there is ongoing uncertainty about whether the company's space infrastructure plans are feasible, its stock price still rose sharply. “SpaceX may be the biggest warning sign that today’s tech stock rally is reaching a level where valuations are no longer reasonable.”