Jim Cramer Warns SpaceX IPO Could Spike to Unsustainable Levels

CNBC's Jim Cramer warned Thursday that SpaceX's stock could soar to unsustainable levels when it begins trading Friday. Elon Musk's rocket and artificial intelligence company set a fixed IPO price of $135 per share, equal to a $1.77 trillion valuation, with the deal reportedly four times oversubscribed. Cramer expressed concern that excessive demand from institutional buyers, retail enthusiasm, and future index purchases could create a sharp but unsustainable price spike immediately after trading begins.

SpaceX Sets $135 Share Price for Friday Debut

SpaceX set a fixed sale price of $135 per share for its initial public offering, equal to a valuation of $1.77 trillion. The deal has been four times oversubscribed according to reports. The Mad Money host noted that while high subscription levels are typically viewed positively, excessive demand can create problems for newly public companies.

Cramer Warns About Inexperienced Investors Using Market Orders

Cramer stated he is particularly concerned about inexperienced investors placing market orders rather than limit orders. "These are new, unguided missiles who can't be controlled," Cramer said. He warned that if enough buyers rush in simultaneously, SpaceX could briefly command a valuation rivaling or exceeding the world's largest publicly traded companies. "Can a $4 to $5 trillion stock really be at hand? For a few minutes perhaps, just as long as it takes to gaffe a marlin," he said. "That's a terrific catch, but if it isn't stuffed and mounted fast, it stinks to high heaven."

Figma and Cerebras IPOs Showed Post-Launch Declines

Cramer pointed to recent IPOs as cautionary examples. He referenced Figma in July 2025 and Cerebras in May, stating both "continued to go higher and then they started the long descent." In Cramer's view, the best IPOs open modestly above their offering price and then trade in an orderly fashion.

Cramer Advocates for Controlled IPO Opens

Cramer stated the goal should be a controlled debut rather than a spectacular first-day spike. "We want the deals to be under control because otherwise it can be disastrous," he said. He emphasized that controlled openings allow stocks to build value over time rather than experiencing unsustainable spikes followed by declines.

FAQ

What price did SpaceX set for its IPO? SpaceX set a fixed sale price of $135 per share, equal to a valuation of $1.77 trillion.

Why is Jim Cramer concerned about SpaceX's IPO? Cramer warned that the deal's four times oversubscription combined with inexperienced investors placing market orders could push the stock to unsustainable levels immediately after trading begins on Friday.

What recent IPOs did Cramer cite as cautionary examples? Cramer pointed to Figma in July 2025 and Cerebras in May, both of which initially rose before entering long declines.