CNBC: IPOX® Founder Josef Schuster Comments on SpaceX IPO Access and Investor Caution
CNBC Make It’s Ryan Ermey reports on retail investor access to SpaceX’s expected IPO, noting that a portion of shares may be made available through online brokerages including Robinhood, Fidelity and Charles Schwab. The article discusses investor enthusiasm around the offering, potential allocation limits for retail buyers, and the risks associated with newly listed companies.
IPOX® Founder Josef Schuster provided his perspective on IPO market behavior, float, volatility, and portfolio considerations. Schuster told CNBC that IPOX® has “always taken a wait-and-see approach to that market,” emphasizing caution around high-profile IPOs and early trading volatility.
The article also highlights float as a key factor for IPO investors. Schuster described a very low float as “a big red flag” and warned that SpaceX’s rumored float could place the stock in historically challenging territory, adding, “Anything below 7%, you have to be really careful.”
Schuster also cautioned against rushing into IPO stocks immediately after they begin trading. “I think investors really need to be careful of jumping in at this point,” he said. “However, down the road, once it starts trading, I think, let it trade and see. The entry points to IPOs have been, in many cases, much lower than the first trading day. [Some companies] haven’t been winners when we bought them on the first day or at the first close, but they’ve become winners over time.”
Read the full article by Ryan Ermey on CNBC: Retail investors will get access to SpaceX's IPO—here's what to know before buying