existing tech and aerospace stocks could see temporary pressure as money rotates into SpaceX. Second, if broader market conditions weaken after the IPO launches, newly public companies often suffer first because early investors rush to lock in profits. That matters because the broader market is already trading at elevated levels. The S&P 500 currently trades near 23 times forward earnings, above its long-term historical average of roughly 16 to 18 times. Investors piling into another ultra-premium valuation may discover there is little margin for safety if markets cool. That said, none of this means SpaceX is a bad company. Far from it. The business could remain one of the defining growth stories of the next decade. Key Takeaway In any case, smart investors should separate the company from the stock price. SpaceX may absolutely become a long-term winner. But IPO day enthusiasm has a long history of leading investors to overpay for even the best businesses. Between the massive valuation, likely first-day price spikes, and the tendency for mega IPOs to cool after launch, patience could prove rewarding. When all is said and done, investors interested in SPCX may be better served by watching the first few quarters unfold before rushing into the market frenzy on June 12. Follow 24/7 Wall St. on Google