HomeIntelligencePortfolios
Planning
Planning Overview Pension Maximization 403(b) 401(k) Cash Balance Police / Fire & County Safety Federal, Postal & Nurses Social Security MPT Life Insurance Long-Term Care Annuities & RILAs CalculatorsServicesAbout Client Login
TUE CLOSE · MAY 26, 2026  |  DJIA 50,461.68 ▼ 0.23%  ·  S&P 500 7,517.93 ▲ 0.60% RECORD  ·  NASDAQ 26,656.18 ▲ 1.18% RECORD  ·  STOXX 600 628.01 ▼ 0.60%  ·  10Y TREAS 4.490%  ·  WTI $93.89 ▼ $2.71  ·  BRENT $99.58 ▲ 3.6%  ·  GOLD $4,500.40 ▼ $20.60  ·  EURO $1.1632  ·  YEN 159.29  |  CAPITAL WEALTH MID-WEEK EDITION  | 
Specialty · IPO Markets · Tuesday, May 26

Gavin Baker's Decade-Long SpaceX Bet Is About To Print. Here's The Read-Through For Goldman, Morgan Stanley, And The Picks-And-Shovels Names.

Baker first bet in 2015 at a $10B valuation at Fidelity. He bought again in 2019 at $30B through his hedge fund Atreides. SpaceX is now targeting a $1.5T cap at the float — 15 days out.
WSJ Tuesday B1 · Peter Rudegeair · Reframed for the CW book

Tuesday's WSJ B1 profile of star stock picker Gavin Baker is the cleanest window we have into how the SpaceX IPO — now 15 days out, targeting a $1.5 trillion market cap — ripples through the public-market book.

Baker first bet on SpaceX in 2015 when he was at Fidelity Investments — SpaceX was worth roughly $10 billion at the time and had not yet successfully landed a rocket. He left Fidelity in 2019 to launch his own hedge fund, Atreides Management, and bought SpaceX again at a $30 billion valuation that year. Both stakes are about to print billion-dollar gains.

The Public-Market Trade Around SpaceX

SpaceX itself isn't buyable yet — only insiders, pre-IPO investors, and (after the float) public shareholders are positioned. The trade is in the names that benefit from the IPO machinery and the post-IPO infrastructure spend.

Goldman Sachs (GS) and Morgan Stanley (MS) are co-running the SpaceX book. The fee on a $1.5 trillion IPO at standard underwriting economics runs into the billions. GS closed last Thursday at $999.50; that strength reflects the IPO pipeline refilling.

Other IPO names in the queue. The article confirms: OpenAI and Anthropic are both expected to file confidentially within weeks. Stripe is targeting a 2026 listing. Databricks is queued. The cumulative IPO advisory backlog at GS and MS is the largest it's been since 2021.

The Picks-And-Shovels Read

SpaceX's IPO doesn't just generate fees; it generates a balance-sheet repair. Once public, SpaceX can issue equity to fund Starlink expansion, Starship development, and the Tesla-AI compute partnership. That capital all gets spent on:

  • AI compute — Nvidia (NVDA), Advanced Micro Devices (AMD). Starship navigation, Optimus production lines, and Starlink load-balancing all run on AI inference at scale.
  • Data center infrastructure — Vertiv (VRT), Eaton (ETN), Arista Networks (ANET), Bloom Energy (BE). The compute has to be powered and networked.
  • Materials / specialty manufacturing — Albemarle (ALB) for lithium, MP Materials (MP) for rare earths. Battery supply chains for the broader Musk ecosystem.

The Risk Footnote

The SpaceX IPO has the largest expected first-day float since Saudi Aramco. There is real risk of allocation imbalance — Nasdaq is reportedly doing mock opening tests to ensure platform stability. A messy first-day print would not change the fundamental story but could compress GS / MS multiples for one or two quarters.

Bigger risk: any Iran-related geopolitical disruption in the 15 days before launch could push the float into July or beyond. The deal-team timing is reportedly conditional on a stable risk-off window.

For Clients Asking About SpaceX Directly

We cannot buy SpaceX shares for client accounts pre-IPO. After the float, we'll evaluate position sizing based on actual disclosed financials — SpaceX posted a $4.9B net loss in 2025 per the prospectus, and losses are accelerating as Starship and Starlink build out. The trade we're taking now is in the underwriters and infrastructure suppliers.

Book Impact · What It Means For The Portfolios
Reinforce Goldman Sachs (GS) and Morgan Stanley (MS) across all tiers. Maintain Nvidia (NVDA), Advanced Micro Devices (AMD), Vertiv (VRT), Bloom Energy (BE), and Arista Networks (ANET) overweight. Pre-IPO SpaceX exposure is not available to retail accounts; revisit positioning after the actual float and disclosed financials.
Book a 15-Minute Portfolio Review →