SpaceX is gearing up for its biggest launch yet.

Elon Musk’s rocket company is reportedly preparing to file its IPO prospectus as soon as this week, ahead of a planned June listing, targeting a $75 billion raise at a $1.75 trillion valuation, potentially the largest IPO ever.

Even for Musk that sounds pretty ambitious, but his enthusiasm is not entirely unfounded. The company generated $16 billion in revenue and $7.5 billion in EBITDA last year, implying EBITDA profit margins near 50%—well above the 20% average in the aerospace industry.

At its core, SpaceX still runs a launch business, and accounted for over half of global orbital launches last year. But following its merger with xAI, the company is evolving into something more unique: a vertically integrated space and AI infrastructure platform, with much of the capital raised set to fund Musk’s Terafab project, orbital data centers, and lunar infrastructure.

Zoom out: The IPO could re-rate the entire space sector at the exact moment it needs the money. Just yesterday, NASA paused its Gateway project, redirecting $20 billion toward a separate lunar base effort, sending space stocks down.

Today’s SpaceX momentum reversed that sentiment:

• Rocket Lab jumped 10.31% this afternoon
• Firefly Aerospace surged 16.01%
• EchoStar, which has a 3% stake in SpaceX, popped 7.43%
• Intuitive Machines gained 14.68%, also boosted by a new $180.4 million NASA contract

The space trade is just getting started

Some investors are worried about a perhaps unjustified rally in space stocks, drawing parallels to the hype surrounding Netscape’s 1995 IPO, which helped ignite the dot-com bubble.

But the thing about space is that it’s endless—containing business possibilities as numerous as the stars. Even with near-term setbacks like NASA’s pause, the long-term opportunities include launching rockets, providing in-orbit services, extracting resources from the lunar surface, constructing low-orbit data centers, and more.

"I like to think of space like a highway: when you first only had a handful of cars there, everybody had to bring their own gas tank. Once you get thousands of cars up there, you can start to invest in a gas station." Delian Asparouhov, Partner at Founders Fund, told TBPN.

Intuitive Machines, for example, has a pipeline of additional catalysts, including delivering satellites into orbit, additional NASA missions, and key lunar and defense contract decisions on the horizon, according to Cantor Fitzgerald analyst Andres Sheppard.

Other space stocks may soon see their businesses expand as well, as the SpaceX IPO sends the whole sector into orbit.—SY

🟢 What’s up

• Merck agreed to acquire Terns Pharmaceuticals in a $6.7 billion deal, marking its third multibillion-dollar acquisition in the past year, sending Merck up 2.59% and Terns 5.72% higher.
• Robinhood climbed 5.01% on news it approved a new $1.5 billion stock buyback program.
• Alibaba rallied 3.51% after China’s regulatory administration signaled a crackdown on the country’s food-delivery price war.
• Arm gained 16.38% after CEO Rene Haas projected its new chip could generate $15 billion in annual revenue by 2031.
• Intel rose 7.08% and AMD gained 7.26% as investors welcomed improving signals around CPU pricing and demand trends.
• Chewy jumped 13.26% after reporting strong earnings and upbeat 2026 sales guidance that topped expectations.
• Sarepta Therapeutics soared 34.98% after early clinical data from two new muscular dystrophy drug candidates showed encouraging results.
• JetBlue Airways rose 13.37% on reports it’s exploring a potential sale to a rival.

What’s down

• Pop Mart fell 22.14% as concerns over the sustainability of its Labubu-fueled growth overshadowed otherwise strong annual results.
• KB Home dropped 1.55% after cutting its 2026 home delivery outlook, with high mortgage rates and geopolitical uncertainty weighing on buyer demand.
• On Holding sank 11.19% on the news that its CEO will be replaced as the Swiss shoemaker tries to mount a turnaround.

As a financial advisor to high net worth clients at Procyon, James Diver has seen it all. But with war in the Middle East upending markets, AI causing economic chaos, and stagflation coming to the fore, it’s not business as usual these days.

“Clients are certainly freaked out,” he explained. We spoke to him about how he’s handling the upheaval, where he sees opportunities amid AI carnage, and the role of financial advisors in the era of AI.

The following interview has been edited for length and clarity.

What investing advice are you giving to your clients regarding the Iran conflict, a slowing economy, and fears about the fragility of the AI trade?

We’re pulling back a little bit on growth in tech and taking some profits, because the markets—specifically the growth sector—have done really well, averaging about 16% returns over the last two and a half years. Taking some profits from that allocation has been timely because valuations were getting a little stretched.

We’ve been reallocating a small portion of the portfolio into assets that tend to go up or remain stable when inflation increases—something that has been part of the recent turmoil in the Middle East with oil, which has kept interest rates a bit higher than expected. That includes modest allocations to 10-year Treasuries rather than longer-duration 20- or 30-year bonds, especially after seeing what happened in 2022 with long-dated Treasuries. With bond prices beaten up over the past couple of years, buying some 10-year Treasuries at lower levels has provided stability, particularly in IRA accounts.

We’ve also added a diversified basket of precious metals, not just gold but also things like platinum and silver, as part of a commodities allocation.

Overall, the shift involves taking a little profit from both the growth side and, somewhat surprisingly, from bonds, after strong total returns over the last 12 to 18 months, and diversifying into Treasuries, precious metals, and, for larger clients where appropriate, some private credit and alternative investments.

Click here to keep reading about how to play the AI trade, and how Diver is approaching private credit.

A White Lotus-esque hotel chain is taking a break from its poolside life of luxury and diving into the tumultuous waters of the stock market.

Club Med SAS is in talks with banks about a potential IPO, Bloomberg reported today. The French company, which is part of the broader Chinese consortium Fosun International, has been around since 1950 and operates about 70 high-end resorts globally.

The luxurious club is reportedly eyeing the Hong Kong market, but also considering Paris and Amsterdam as alternative contenders. Club Med CEO Stéphane Maquaire, who has been at the helm of the company since July, said that the IPO could happen as soon as 2027, but Fosun told Bloomberg there are no definitive plans for a debut at this time.

Zoom out: This isn’t the first time that Club Med has eyed public markets. In 2015, Fosun purchased Club Med for about $1.1 billion. Back in 2018, the company considered going public as part of the IPO of its parent company, but the Club Med business didn’t end up being part of the deal. Since then, the company has focused on growing its luxury business in China.

Is rich people having fun a good business model?

The thought of Aperol Spritzes and poolside Rolexes might remind you of another private club that IPO’d: Soho House.

Back in 2021, Membership Collective Group Inc, which operated Soho House, the exclusive members-only club, went public on the New York Stock Exchange. Not only was the IPO raised at the lower end of their marketed range ($14 per share), but shares plunged as soon as the company started trading. This January, the company was taken private again at a price of $9 per share.

Soho House essentially cracked under the pressure of the public market. But there was another problem, too: Being an exclusive, luxury brand was ultimately not compatible with a public company business model that demands constant expansion and growth.

Then again, with all of this talk about a K-shaped economy, maybe it isn’t the worst time to be investing in the luxury vacation market. Just look at United Airlines and Delta, which have both enjoyed tailwinds from allocating more seating to premium, wealthy customers.

After all, if there’s one trend that war, stagflation, and political chaos hasn’t slowed down, it’s rich people splashing out.—LB

• A Los Angeles jury found Meta and YouTube guilty of negligence in failing to warn users about harms of using their platforms.
• Retail investors are selling stocks so rapidly this week that they became single-day net sellers for the first time since November 2023.
• Disney just ended its $1 billion deal with OpenAI after the startup abruptly shuttered its video platform Sora.
• Meta rolled out an executive compensation plan that maxes out if the company achieves a $9 trillion valuation. Completely unrelated: The company also began laying off hundreds of employees today.
• BlackRock CEO Larry Fink says he’s not letting investors back out of private credit deals amid anxiety about the asset class.
• Here’s why the number of Americans making tens and even hundreds of millions of dollars has boomed over the past few decades.

Economic reports: Fedspeak galore, with words of wisdom from Federal Reserve Vice Chair Philip Jefferson, as well as Fed governors Lisa Cook, Michael Barr, and Stephen Miran.

Earnings announcements: Honestly, not many companies are reporting tomorrow. The only one worth mentioning is Pony AI, and even that is stretching it.

Everything else: March Madness continues with Texas and Purdue kicking off the Sweet 16.