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My SpaceX Strategy
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Suresh U. Kumar - Thu, 11, Jun 2026
- 03:47 EDT
- 113
Letter to editor. /
As the whole world knows, on June 12, SpaceX will go public — the biggest IPO in history. It is estimated that more than 4,000 millionaires will be minted by noon. Here's the thing about IPOs that I learned the hard way.
By the time Main Street investors buy their first share of SpaceX, the insiders — the Silicon Valley elite, the venture funds that invested in SpaceX, and early employees — will have the biggest payday of their lives.
Here is the truth about IPOs: The massive gains were allocated years ago, quietly, to a group of insiders. June 12 is their exit day — funded by frenzied hordes of everyday investors.
Given the likely scenario of a quick explosion out of the gate and then a pullback, what is my SPCX strategy?
There is an old saying from the gold rush days about what builds wealth: It's the picks and shovels, not the gold. The miners went broke. The sellers of picks and shovels became wealthy. This is true for most booms.
Cisco, IBM, and Intel were the early stars of the internet and computers, but Nvidia, Micron, Broadcom, and CrowdStrike — the picks and shovels of the internet era — have benefited even more. So I will be looking for the picks and shovels that SpaceX uses. And where do I find them? In the soon-to-be-public records of SpaceX.
Here is my SpaceX game plan. I invested in SpaceX pre-IPO via an alternate investment vehicle about a year ago. I have now applied to get SPCX shares at the IPO price of $135. If I am lucky, I may get 100 shares, but I am not holding my breath. I will NOT follow the herd by buying the stock when it jumps in value, as I am sure millions of investors will.
I will wait for the sharks to get their fill and look for a better entry point down the line. In the meantime, I will look for SpaceX suppliers, partners, and patent holders. Mostly small companies that will benefit from the G-force of SpaceX.
Suresh Kumar
The writer is a tech entrepreneur, professor, member of the NJ India Commission and the author of Amazon Bestseller, The Girl in Scarlet Hijab
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