Morgan Stanley Co-Lead on SpaceX’s $75B IPO Trails Goldman; Warns on 26x IT Hardware Valuations
Morgan Stanley was listed as co-lead on SpaceX’s $75 billion IPO, trailing Goldman Sachs for top billing and potentially ceding fee revenue in the deal. Its analysts also warn IT hardware stocks trade at 26x next-twelve-month P/E, flagging memory supercycle and supply risks for 2H earnings.
1. Morgan Stanley’s Role in SpaceX IPO Race
Morgan Stanley is co-lead for SpaceX’s planned IPO targeting over $2 trillion valuation and raising $75 billion, but Goldman Sachs secured the top billing slot on the filing, intensifying rivalry and potentially reducing Morgan Stanley’s fee share on what could be the largest IPO in history.
2. Warning on IT Hardware Valuations
In a client note, Morgan Stanley analysts highlighted that IT hardware stocks (ex-Apple) trade at 26 times next-twelve-month P/E, a ten-turn premium to prior peaks, citing a 600% year-on-year memory price surge, supply constraints and macro volatility as key downside risks for second-half margins and EPS.
3. Impact on Morgan Stanley’s Revenue and Risk Profile
The split outcome on SpaceX deal positioning and cautious sector outlook underscores revenue uncertainty and heightened risk exposure for Morgan Stanley’s advisory and research businesses, with potential fee losses on IPO syndication and lower trading commissions from downgraded hardware names.