SpaceX recently filed for an IPO, claiming to establish a multi-planetary life system and other grand missions. But in reality, company value is measured by money, with retail investors becoming the first buyers, and insiders or opportunists taking advantage to inflate prices for profit. Since the 1980s, the proportion of IPOs with losses has increased, and most underperform the market after three years. Companies like SpaceX often use non-GAAP data, adopting adjusted EBITDA that excludes depreciation and incentives, to present a picture far above GAAP profits, aiming for higher valuations during the IPO while hiding potential risks.

MeNews

2026-05-23 14:50:46

Abstract generation in progress

ME News message, May 23 (UTC+8). SpaceX recently filed for an IPO. Its mission statement reads: “To build the systems and technologies necessary for making life a multiplanetary species, understand the true nature of the universe, and extend the light of consciousness to the stars.” Behind this grand narrative, business ultimately still needs to return to the idea of measuring a company’s value by money, and retail investors are often the target of the first batch of share sales after an IPO launch. Insiders who obtain shares at fixed prices hope to drive up the stock price through market hype, so they can sell some shares for profit. According to Nasdaq’s disclosed data, since the 1980s, the proportion of IPOs by loss-making companies has risen from 20% to 80% of the annual total. Three years after an IPO, nearly two-thirds of companies underperform the broader market, and most of them (64%) lag by more than 10%. While some companies perform well over the long term and some loss-making companies eventually become profitable, it is very difficult to accurately determine the price for new IPOs and judge their investment value. Many companies are increasingly using non-GAAP terms that do not meet U.S. GAAP accounting standards. While non-GAAP metrics can sometimes be useful, they are often used to make companies look more valuable, and SpaceX also uses “Adjusted EBITDA” (earnings before interest, taxes, depreciation, and amortization). That is, in financial disclosures, only net income or loss is considered, while depreciation and amortization, share-based compensation, impairments, restructuring costs, interest expense, and income are excluded. The end result is a figure far higher than actual GAAP net profit. This allows companies to present investors with the image that “if you ignore these interferences, our operations are actually very healthy and strong,” which is especially suitable for growth companies like SpaceX—asset-heavy, requiring large early investments, and not yet having achieved high profits—thereby making it easier to gain market recognition and receive higher valuations at the time of the IPO. (Source: BlockBeats)

SPCX6.48%

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Stop-LossForBluePeony

· 9h ago

Has no one mentioned that since the 1980s, the proportion of IPOs losing money has increased?

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GotLiquidatedAgainLastNight.

· 11h ago

Are retail investors once again the bagholders? Historical data shows they underperform the market over three years; those in the know understand.

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DaoBackbencher

· 13h ago

In the valuation game, who will take the final baton?

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GateUser-ecded933

· 13h ago

Adjusted EBITDA excluding depreciation? Even my cat could turn a profit.

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OrderflowOtter

· 13h ago

SpaceX technology is indeed impressive, but investing is a different matter.

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SweepTheFloor

· 13h ago

From Tesla to SpaceX, the financial reports of Musk's companies must be examined with a magnifying glass.

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WatercolorInAGlassBottle

· 13h ago

The four characters describing retail first-time buyers made my heart tighten.

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GateUser-14cb5f72

· 13h ago

Financial magic under the grand narrative packaging, a close examination

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OneUnfilledOrder

· 13h ago

Elon Musk's storytelling ability is indeed top-tier, but the adjusted EBITDA approach is an old routine.

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Opinion: SpaceX increases pre-IPO valuation through non-GAAP metrics, making true value difficult to accurately estimate

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