Morgan Stanley, a financial holding company, provides various financial products and services to corporations, governments, financial institutions, and individuals in the Americas, Europe, the Middle East, Africa, and Asia. It operates through Institutional Securities, Wealth Management, and Investment Management segments. The Institutional Securities segment offers capital raising and financial advisory services, including services related to the underwriting of debt, equity, and other securities, as well as advice on mergers and acquisitions, restructurings, real estate, and project finance. This segment also provides equity and fixed income products comprising sales, financing, prime brokerage, and market-making services; foreign exchange and commodities; corporate and commercial real estate loans, commercial mortgage and secured lending facilities, and financing for sales and trading customers, and asset-backed and mortgage lending; and wealth management services, investment, and research services. The Wealth Management segment offers financial advisor-led brokerage, custody, administrative, and investment advisory services; self-directed brokerage services; financial and wealth planning services; workplace services, including stock plan administration; annuity and insurance products; securities-based lending, residential real estate loans, and other lending products; banking; and retirement plan services to individual investors and small to medium-sized businesses and institutions. The Investment Management segment provides equity, fixed income, alternatives and solutions, and liquidity and overlay services to benefit/defined contribution plans, foundations, endowments, government entities, sovereign wealth funds, insurance companies, third-party fund sponsors, corporations, and individuals through institutional and intermediary channels. The company was founded in 1924 and is headquartered in New York, New York.

Morgan Stanley выглядит как качественный, но уже не дешёвый финансовый актив с сильной доходностью на капитал и устойчивой прибылью. P/E на уровне 16.31 выше медианы отрасли, а P/B 2.73 и P/S 4.11 заметно превышают отраслевые ориентиры, что ограничивает потенциал переоценки и требует премии только за качество. При этом динамика прибыли и эффективности поддерживает оценку: ROE вырос до 31.78, ROA до 1.62, маржа чистой прибыли до 23.82, операционная маржа до 31.08, а доходность на материальный капитал остаётся высокой. EPS и прогноз EPS также сильны и растут, что говорит о хорошем качестве текущего earnings power. Выручка, операционная прибыль, EBITDA и чистая прибыль в целом находятся на высоком уровне и демонстрируют положительную траекторию, хотя рост не выглядит взрывным. Баланс крупный и устойчивый по масштабу, но долговая нагрузка остаётся высокой: debt/equity 2.99, долгосрочный долг и общие обязательства значительны, а текущая и быстрая ликвидность слабые. Это типично для крупного финансового института, но всё же добавляет риск и не позволяет агрессивно повышать целевую оценку. Дивидендная доходность снизилась до 0.52, поэтому дивидендный фактор сейчас поддерживает цену слабее, чем раньше. ROI ниже медианы отрасли, что немного охлаждает картину эффективности капитала. В сумме фундаментал скорее оправдывает умеренно позитивный взгляд, но высокая относительная оценка по мультипликаторам и долговая нагрузка сдерживают апсайд. Для инвестора это история про сильное качество бизнеса и прибыльности, но без большого запаса прочности в цене.

Morgan Stanley

Сильный индекс, значительно упал. Быки в растерянности.

Strong index, significantly down. The bulls are confused.

Слабый индекс, значительно вырос. Рынок не поддерживает быков.

Weak index, significantly up. The market does not support the bulls.

Слабый индекс, незначительно упал

Сильная прибыльность и ROE поддерживают Morgan Stanley, но высокая оценка по P/B, P/S и долг остаются сдерживающими факторами.

Key Points
Coca-Cola stock is a bulwark against rising producer prices.
The shares are rising alongside the Producer Price Index (PPI).
That's confirmation of the company’s ability to manage a challenging environment.
Perhaps lost in the shuffle of the June 11 risk-on equity market rally -- one fueled in part by the White House saying it nixed military strikes against Iran -- was the May reading of the Producer Price Index (PPI) released early in the day.
The report wasn't pretty. It showed a 1.1% increase, meaning the wholesale inflation rate over the prior 12 months was 6.5%, the highest level since November 2022. Typically, companies' higher input costs are passed on to shoppers, suggesting some vulnerability for consumer staples stocks. That's not the case across the board. Just look at Coca-Cola (NYSE: KO).
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Outpacing the S&P 500 by a margin of more than 2-to-1 this year, the beverage stock hit a 52-week high the day before the PPI report. That's not a coincidence. Rather, it's a testament to Coca-Cola's execution prowess amid a tough operating climate.
Not just a pricing power story
As noted above, companies across a variety of industries often raise prices on customers to offset higher producer costs. Due to its enviable brand recognition and status as the purveyor of multiple premium soft drink brands, Coca-Cola could probably get away with some price hikes to soften the blow of elevated input costs. Still, the company isn't leaning on that option.
That's to the benefit of both investors and shoppers, because rival PepsiCo went down that road and lost billions of dollars in sales as cost-sensitive consumers said, "Enough is enough." Well-run companies learn from rivals' missteps, and Coca-Cola appears to have learned valuable lessons from Pepsi's pricing gaffes. Indeed, Coca-Cola is facing some inflationary headwinds, including constrained aluminum and plastic supplies due to the war in Iran.
For investors, the good news is that the company has levers it can pull to juice sales without pinching consumers. Those include pushing drinks that are less commodities-intensive (less sugar). Those moves are working because some on Wall Street say Coca-Cola is somewhat "insulate" from inflation-induced cost pressures and can maintain its appeal to both high-end and cost-conscious consumers.
Consider this. On June 10, Morgan Stanley named Coca-Cola its top pick in the beverage space, with one of the reasons for that bull call being the company's ability to hold prices in the face of inflation in superior fashion relative to some rivals.
Don't forget the dividend
Another point of allure with Coca-Cola is its status as a blue chip dividend stock. The shares yield 2.6%, and the payout has grown for 64 consecutive years. Obviously, a six-decade-plus run of steadily rising dividends is impressive in its own right, but it pays to dig deeper.
Typically, consistent dividend raisers are high-quality companies that can offer investors some protection when markets turn sour.
Coca-Cola's dividend growth is also relevant in the inflation protection conversation. The stock's 2.6% yield matches the average rate of inflation over the past two decades, and it's well above the five-year forward breakeven level of 2.2%. At the end of the day, no stock is the "perfect" inflation fighter, but long-term investors looking for a friend in the face of rising prices may want to give Coca-Cola a look.
Should you buy stock in Coca-Cola right now?
Before you buy stock in Coca-Cola, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Coca-Cola wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $438,283!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,257,427!*
Now, it’s worth noting Stock Advisor’s total average return is 938% — a market-crushing outperformance compared to 206% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
Todd Shriber has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

A 6.5% Increase in the Producer Price Index Is No Match for Coca-Cola Stock

Key Points
She also kept her unambiguous buy recommendation intact.
The company continues to do well selling into the lucrative AI market.
Tech networking equipment company Arista Networks (NYSE: ANET) is going into the weekend on a high note. Its stock zoomed more than 4% higher on Friday, thanks to a new, bullish note from an analyst at an influential investment bank.
The $10 per share difference
Before market open, Meta Marshall of Morgan Stanley raised her price target on Arista to $190 per share from $180. In doing so, the analyst maintained her overweight (read: buy) recommendation on the specialty tech stock.
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According to reports, Marshall's adjustment is based on her view that since many artificial intelligence (AI) implementations have reached the inference -- i.e., implementation -- stage, as opposed to the training phase, next-generation equipment makers are well positioned to benefit handsomely.
This also applies to what the pundit termed "CPU intensity," as more processing power is needed for the effective functioning of AI models.
High value
If anything, Marshall might be understating the case and underestimating Arista's potential. The company is not only a trusted supplier in its cloud networking segment but one that's about to ride a very large wave as AI implementations continue to scale up. This is a very attractive company and stock at the moment, and this price target bump is more than justified.
Should you buy stock in Arista Networks right now?
Before you buy stock in Arista Networks, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Arista Networks wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $438,283!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,257,427!*
Now, it’s worth noting Stock Advisor’s total average return is 938% — a market-crushing outperformance compared to 206% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
*Stock Advisor returns as of June 12, 2026.
Eric Volkman has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Arista Networks. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Why Arista Networks Stock Flew More Than 4% Higher on Friday

Key Points
SpaceX’s stock soared upon its market debut.
But that rally could sputter out once the euphoria fades.
SpaceX (NASDAQ:SPCX), the aerospace and AI company founded by Elon Musk, went public on June 12. It priced its shares at $135, started trading at $150, and is now trading around $170 as of this writing. It opened with a market cap of $1.77 trillion, making it the biggest IPO in history.
SpaceX floated less than 5% of its shares in that offering, but allocated up to 30% to retail investors rather than institutions. That decision opened up SpaceX to a much larger cohort of smaller investors. Let's see what a $1000 investment might have gotten you in SpaceX's IPO -- and how much it might be worth in a few years.
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Was $1,000 enough to invest in SpaceX?
All brokerages that offered SpaceX required investors to buy at least one full share at $135. Some of those brokerages also had minimum account balance requirements. Fidelity only offered the IPO to accounts with more than $2,000 in assets, while Schwab set the bar even higher at $100,000. E*Trade from Morgan Stanley, Robinhood, and SoFi -- which didn't have any minimum account balance requirements -- only required investors to have enough funds to cover their orders.
But is SpaceX worth investing in?
A $1,000 investment would only have gotten you seven shares of SpaceX at its IPO price and six shares at its opening price. Some bullish investors might hope their investment doubles or triples this year, but I believe it will quickly peak and stumble for three reasons.
First, it was already valued at 95 times its 2025 sales upon its market debut. Its initially rally will likely push its price-to-sales ratio above 100. That's an unsustainable valuation, even for a company that grew its revenue by 33% in 2025. Second, it's unprofitable because the losses from its space and AI divisions are wiping out Starlink's profits. That pressure will worsen as it ramps up its AI infrastructure investments. Lastly, SpaceX's low float indicates it's eager to raise capital but isn't willing to give its investors a seat at the table. With Elon Musk maintaining an 82% voting stake after its IPO, it will remain immune to any investor pressure.
SpaceX might eventually grow into its sky-high valuations, but it's not for me. If you invest $1,000 in this stock today, your investment could initially blossom as a "fear of missing out" takes over, but it will shrivel as that euphoria fades. Therefore, I expect the value of your investment to shrink to a few hundred dollars over the next year before stabilizing.
Should you buy stock in Space Exploration Technologies right now?
Before you buy stock in Space Exploration Technologies, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Space Exploration Technologies wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $438,283!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,257,427!*
Now, it’s worth noting Stock Advisor’s total average return is 938% — a market-crushing outperformance compared to 206% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
*Stock Advisor returns as of June 12, 2026.
Charles Schwab is an advertising partner of Motley Fool Money. Leo Sun has no position in any of the stocks mentioned. The Motley Fool recommends Charles Schwab and recommends the following options: short June 2026 $97.50 calls on Charles Schwab. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Here’s What a $1,000 Investment in SpaceX’s IPO Would Be Worth Today — and What Could Come Next

Key Points
Several analysts initiated coverage on Cerebras stock this week.
Despite the analysts' bullish ratings and price targets, investors would be wise to place greater emphasis on the company's fundamentals in deciding whether or not to buy Cerebras stock.
After sinking more than 15% last week, shares of Cerebras (NASDAQ: CBRS) have been heading in the other direction over the past few days. With several analysts initiating coverage on the artificial intelligence (AI) stock and setting auspicious price targets, investors have found sufficient cause to click the buy button.
According to data from S&P Global Market Intelligence, Cerebras shares are up 10.2% from the close of trading last Friday through yesterday's close.
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Wall Street has a warm welcome for this AI powerhouse
Immediately after Cerebras's initial public offering (IPO), there weren't many analysts expressing opinions on the stock's prospects. But that changed this week.
On Monday, several analysts initiated coverage with bullish outlooks.
Barclays analyst Tom O'Malley assigned an overweight rating and $280 price target.
Mizuho assigned an outperform rating and $300 price target.
UBS assigned a buy rating and $300 price target.
TD Cowen analyst Joshua Buchalter assigned a buy rating and $275 price target.
Morgan Stanley analyst Joseph Moore assigned an overweight rating and $250 price target.
Analysts identified several factors that supported their optimistic takes on Cerebras stock. According to Thefly.com, Joseph Moore, for example, recognized that Cerebras' contracts suggest the company could generate $6 billion in revenue in 2028, with the potential to grow even more. For context, Cerebras reported sales of $510 million in 2025.
On the other hand, a Craig-Hallum analyst, who rated Cerebras as a buy and set a $325 price target, recognized "a need for speed in AI inferencing," adding that both OpenAI and Amazon's AWS both embraced Cerebras "because they [Cerebras] are the fastest in the world."
Should Main Street investors follow Wall Street's lead?
As the developer of a leading full-stack AI infrastructure solution, Cerebras stock has garnered considerable market interest since the company's IPO. While the tide of bullish analyst sentiment is noteworthy this week, investors would be better served to focus on the company's financials to ensure its growth prospects remain intact.
Should you buy stock in Cerebras Systems right now?
Before you buy stock in Cerebras Systems, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Cerebras Systems wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $438,283!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,257,427!*
Now, it’s worth noting Stock Advisor’s total average return is 938% — a market-crushing outperformance compared to 206% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
*Stock Advisor returns as of June 12, 2026.
Scott Levine has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Amazon. The Motley Fool recommends Barclays Plc. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Why Cerebras Stock Is Rising This Week

Morgan Stanley MS is keeping the door open for acquisitions as it looks to strengthen its asset and wealth management franchise. However, CEO Ted Pick made it clear that any deal must meet a high strategic bar and align closely with the company’s long-term growth priorities.
Speaking at the bank’s flagship U.S. Financials Conference, Pick said Morgan Stanley is “wide awake” to potential M&A opportunities as the regulatory backdrop becomes more constructive. Wealth management and selected areas of asset management appear to be the most likely targets, particularly where a deal can deepen the company’s U.S. leadership, add tools for advisors or broaden exposure to high-growth areas such as private markets, alternatives, tax optimization and digital assets.
The comments come as Morgan Stanley’s wealth platform gains scale. Pick said the company can now envision $10 trillion in wealth management assets alone, supported by its funnel of E*TRADE, Workplace and roughly 15,000 financial advisors. Workplace remains a key engine, with billions of dollars moving from stock-plan and self-directed channels into advisor-led relationships.
Morgan Stanley has already shown how acquisitions can reshape its business mix. Smith Barney, E*TRADE and Eaton Vance helped shift the company toward more durable fee-based revenues, while bolt-ons such as Solium and EquityZen added capabilities in workplace and private shares.
Still, Pick stressed discipline. M&A in financial services can be difficult, culturally sensitive and distracting. Organic growth remains the priority at the moment. But with excess capital and improving deal conditions, Morgan Stanley has room to act when the right target emerges.
Morgan Stanley’s Peers: M&A as an Expansion Tool
Two close peers of Morgan Stanley are Goldman Sachs GS and JPMorgan JPM.
Goldman is refocusing on core capital markets and wealth management businesses. In sync with this, in April, the company acquired Innovator Capital Management, expanding Goldman’s active ETF capabilities, while in January, it acquired Industry Ventures, broadening exposure to the innovation economy and strengthening the alternatives platform.
JPMorgan has the capital to pursue a major deal, with CEO Jamie Dimon indicating it could deploy up to $20 billion for the right opportunity. Acquisitions in wealth, payments, asset management or fintech could strengthen JPMorgan’s franchise and support new growth, but execution, regulatory and valuation risks make discipline essential.
Morgan Stanley’s Price Performance & Zacks Rank
Shares of Morgan Stanley have gained 19.2% over the past six months compared with the industry’s rally of 1.3%.
Image Source: Zacks Investment Research
At present, Morgan Stanley carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Beyond Nvidia: AI's Second Wave Is Here
The AI revolution has already minted millionaires. But the stocks everyone knows about aren't likely to keep delivering the biggest profits. AI’s second wave is moving from infrastructure to implementation and these companies are at the forefront of this transition, positioned to become what Amazon and Google were to the internet era.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Morgan Stanley Keeps M&A Door Open Amid $10T Wealth Push

Key Points
The SpaceX IPO will be available on a broad swath of trading platforms frequented by retail investors.
With Morgan Stanley among the banks running the IPO, E*TRADE clients can get in on the SpaceX act.
Investors using other platforms should check their account balances.
Liftoff for the initial public offering (IPO) of Space Exploration Technologies (NASDAQ: SPCX)-- better known as SpaceX -- is nearly here, with the largest IPO in history set for today (Friday, June 12). With Elon Musk's company expected to raise $75 billion at a $1.75 billion valuation, the hoopla is considerable.
Obviously, that dollar amount is eye-catching, but so is another figure: the portion of the offering -- up to 30% -- that SpaceX is reserving for retail investors. That's well above the 5% to 10% typically set aside for non-professional market participants in standard IPOs. Undoubtedly, SpaceX will be highly accessible compared to past IPOs. Still, prospective investors should set aside a few minutes for pre-IPO homework to avoid disappointment.
Will AI create the world's first trillionaire? Our team just released a report on the one little-known company, called an "Indispensable Monopoly" providing the critical technology Nvidia and Intel both need. Continue »
Said another way, market participants who want to buy in immediately need to know whether their brokerage of choice is one of the five offering first-day access to this space stock. Without further ado, let's unveil the five brokers offering rapid access to SpaceX shares.
Eyes on E*TRADE from Morgan Stanley
Morgan Stanley (NYSE: MS) is one of the investment banks participating in SpaceX, and its E*TRADE unit is mentioned in the prospectus as one of the five trading houses that will get a slice of the stock's retail pie.
E*TRADE reportedly won't require a minimum account balance to join the SpaceX craze, but there are some small hoops to jump through. You have to go to the broker's New Issue hub, complete an investor profile that confirms eligibility, and acknowledge that you've read the IPO's prospectus.
After that, you must submit a conditional offer to buy, and ensure your account is appropriately funded. So if you're an E*TRADE customer and want to buy $5,000 worth of SpaceX on Friday, make sure you've got at least $5,000 in cash in your account before the IPO.
Speaking of account minimums...
A pair of well-known trading shops is requiring clients to maintain certain cash balances before buying SpaceX stock, but the gap between the two is as wide as the Pacific Ocean. Fidelity originally required retail clients to have $500,000 in their accounts to attend the SpaceX party, but the company has since lowered the minimum to a more palatable $2,000.
Charles Schwab (NYSE: SCHW) is still in the six-figure requirement club, mandating that its clients have at least $100,000 in their accounts. Schwab customers who meet that mark have a potential advantage, because the broker doesn't curtail clients from rapidly moving out of IPOs on the first day or soon after the offering.
Some brokers, including Fidelity, do punish clients for "flipping" IPOs. Fidelity clients who don't hold SpaceX for at least 15 days may lose access to future IPOs on the platform.
Two for younger traders
The other two brokerages mentioned in the SpaceX prospectus as participants in the retail tranche of the IPO are Robinhood Markets (NASDAQ: HOOD) and SoFi Technologies (NASDAQ: SOFI).
Musk's company doesn't come right out and say as much, but involving Robinhood and SoFi in the IPO may well be an effort to cater to younger investors, many of whom are enthusiastic about space stocks. If that is in fact part of the SpaceX plan, it's supported by data. As of December 2024, 75% of Robinhood customers were 43 years old or younger, with 25% being 27 or younger. SoFi's client base also skews younger, with many clients concentrated in the 28 to 43 age range.
Good news for users of both platforms: Neither is imposing an account minimum to participate in the SpaceX IPO.
Should you buy stock in Space Exploration Technologies right now?
Before you buy stock in Space Exploration Technologies, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Space Exploration Technologies wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $442,220!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,230,114!*
Now, it’s worth noting Stock Advisor’s total average return is 926% — a market-crushing outperformance compared to 203% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
*Stock Advisor returns as of June 12, 2026.
Charles Schwab is an advertising partner of Motley Fool Money. Todd Shriber has no position in any of the stocks mentioned. The Motley Fool recommends Charles Schwab and recommends the following options: short June 2026 $97.50 calls on Charles Schwab. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Retail Investors Could Get SpaceX IPO Shares Through These 5 Brokerages Today

Key Points
SpaceX's IPO is getting to the finish line.
There is massive demand for shares before they begin trading on Friday.
That said, the stock looks overvalued and statistically is likely to underperform the market going forward.
One of the biggest days in stock market history is tomorrow. At some point during trading hours on Friday, June 12, SpaceX will begin trading after going public through an initial public offering (IPO). The price is close to final at $135 a share, with a $1.77 trillion market cap and $75 billion in capital raised, barring any last-minute adjustments.
Still confused? Here's exactly what investors need to know about tomorrow's SpaceX IPO.
Will AI create the world's first trillionaire? Our team just released a report on the one little-known company, called an "Indispensable Monopoly" providing the critical technology Nvidia and Intel both need. Continue »
Price and demand
Reports say SpaceX will raise approximately $75 billion in its IPO, at a market cap of $1.77 trillion. Both are the largest levels in history. It is also close to 4 times oversubscribed, with $250 billion in investment capital looking to buy at this IPO price.
What does this all mean in preparation for Friday? This is where the Wall Street bankers come in. Scanning across the board from large funds to individual traders using online brokerages, investment banks like Morgan Stanley are currently building and choosing the order book for the $75 billion in SpaceX shares that will be allocated at the IPO.
On Friday, the market makers and investment banks (multiple in this case) will collect buy and sell orders and open the stock once they believe supply and demand have been matched. This step shows why a stock may open higher or lower than its IPO price, depending on how many others want to buy shares that didn't get included in the original allocation. For SpaceX, with $250 billion of investor demand reportedly trying to buy the stock, it may pop above its $135 IPO price on the first day of trading.
A business with many moving parts
Enough about IPO mechanics; let's talk about SpaceX's actual business that you are buying a piece of if you get in on the IPO or trade it on the first day.
SpaceX is known for its rocket launch business, but it is quickly evolving into much more than that with its internet and artificial intelligence (AI) endeavors. Starlink revenue was $11.4 billion in 2025, growing 50% year over year. Its new contracts for AI compute with Anthropic and Alphabet are massive, bringing this segment from close to a standing start to $26 billion in annual revenue -- as long as the two AI software players don't back out of the deals.
Altogether, SpaceX generated $18 billion in revenue last year and was unprofitable. A $1.77 trillion market cap compared to this revenue is quite the premium. However, it also has the potential to quickly grow this revenue in the years ahead because of its Starlink and AI initiatives.
The truth about most IPO stocks
Excitement has reached a fever pitch for the SpaceX IPO. Expectations are that many individual investors will get an allocation to the initial offering, with many more buying on the first day of trading.
Even if the stock does pop tomorrow, the odds are stacked against SpaceX delivering positive returns in the years ahead.
First, it trades at a price-to-sales ratio (P/S) of 93 compared to its 2025 revenue and is unprofitable. Second, IPO stocks on average disappoint investors after the first days of trading. Three years after the IPO, two-thirds of IPO stocks underperform the market. This is due to most of them being priced at a premium valuation.
The same can be said of SpaceX. It is going out at an IPO of $1.77 trillion and will likely pop on its first day of trading. To generate positive returns for shareholders, it will have to quickly turn its 2025 revenue of $18 billion into hundreds of billions. Call me skeptical that it will occur, no matter how grand Elon Musk's vision is.
Where to invest $1,000 right now
When our analyst team has a stock tip, it can pay to listen. After all, Stock Advisor’s total average return is 926%* — a market-crushing outperformance compared to 203% for the S&P 500.
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Brett Schafer has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

The SpaceX IPO Is Tomorrow -- Here's Exactly What Investors Need to Know Before It Hits the Market

Key Points
Chewy shares have been falling consistently over the last year,
Management says net customer acquisitions for the year will be on the lower end of its forecast.
Several analysts have cut their price targets for Chewy stock.
Chewy (NYSE: CHWY) stock has been stumbling since the company reported its fiscal first-quarter 2026 earnings on June 10. Chewy reported gains in revenue, earnings per share, and net margin, but the stock still slipped after guidance projected a challenging sales environment.
Then Chewy continued its fall today following a series of analyst downgrades, losing another 5%. The fall is the latest in a series of declines in Chewy stock, which is now down 43% this year and 84% off its all-time highs set during the COVID-19 pandemic.
Will AI create the world's first trillionaire? Our team just released a report on the one little-known company, called an "Indispensable Monopoly" providing the critical technology Nvidia and Intel both need. Continue »
Considering Chewy is seeing increased sales and improved margins, are investors overreacting to the guidance? Let's take a closer look at what's happening.
About Chewy stock
Chewy, based in Florida, is an online pet retailer that sells food, toys, treats, supplements, and other supplies. The business caters to the estimated 56.3 million U.S. households that own dogs and 43.1 million that own cats, providing a large base of potential customers.
But shares have been falling consistently over the last year, sinking 58.1% in the last 12 months versus a 21% gain in the benchmark S&P 500. And the drop is not industrywide: Petco Health & Wellness (NASDAQ: WOOF), another pet retailer with both brick-and-mortar and online sales, gained 4% in the same period.
Despite the sell-off, Chewy stock trades at a forward price-to-earnings ratio of 12.5, which is only slightly below Petco's 13.1 multiple.
Chewy's earnings were good, but the guidance was not
Quarterly net sales for the period ending May 3 were $3.36 billion, up 7.7% from a year ago. Net income was $94.8 million, up from $62.4 million, and the company's net margin increased 80 basis points to 2.8%. Earnings were $0.43 per share, up from $0.35 per share
CEO Sumit Singh said the company was confident in its ability to gain market share and deliver more growth, but he raised red flags when speaking to analysts about challenges facing the U.S. consumer.
"Pet remains a resilient category, driven by recurring nondiscretionary needs and strong emotional attachment," he said. "At the same time, consumers are growing more discerning, driven in part by elevated fuel prices and broader macroeconomic pressures."
The company's updated guidance, he said, reflects "a more appropriately conservative view of the consumer environment and broader category growth assumptions for the balance of the year."
The company is now projecting full-year sales of $13.4 billion to $13.55 billion, representing growth of 6.3% to 7.5%. But it is projecting that customer additions will be toward the lower end of its previously stated range of 150,000 to 250,000.
What are analysts saying about Chewy stock?
Several analysts have lowered their projections for the company since Chewy's fiscal Q1 report. Morgan Stanley dropped its price target from $43 to $42, citing the weak macroeconomic environment. Bank of America maintained a "Buy" rating, but cut its price target from $33 to $31. Piper Sandler kept its "Overweight" rating, but cut its price target from $48 to $30. And MoffettNathanson downgraded the stock from a "Buy" to "Neutral," saying it can no longer maintain a bullish thesis on Chewy.
Is Chewy stock a buy?
Chewy is growing its revenue base and market share, planning to operate 60 veterinary clinics by the end of the year, and using artificial intelligence to generate cost savings estimated at at least $50 million by next year. Those are all reasons why Chewy should not be overlooked.
But at the same time, management is acknowledging that customer acquisitions will be at the low end of its forecast, and that growing inflation and the possibility of higher interest rates will continue to pinch household budgets of potential customers. I am sitting on the sidelines for Chewy stock and don't expect a significant turnaround any time soon.
Should you buy stock in Chewy right now?
Before you buy stock in Chewy, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Chewy wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $442,220!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,230,114!*
Now, it’s worth noting Stock Advisor’s total average return is 926% — a market-crushing outperformance compared to 203% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
*Stock Advisor returns as of June 11, 2026.
Patrick Sanders has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Chewy. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Is Chewy Inc a Buy After Its Latest Earnings Report?

Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the Financial Select Sector SPDR Fund (Symbol: XLF) where we have detected an approximate $222.0 million dollar outflow -- that's a 0.4% decrease week over week (from 957,695,427 to 953,445,427). Among the largest underlying components of XLF, in trading today Morgan Stanley (Symbol: MS) is up about 1%, Wells Fargo & Co (Symbol: WFC) is off about 0.8%, and Citigroup Inc (Symbol: C) is higher by about 1%. For a complete list of holdings, visit the XLF Holdings page » The chart below shows the one year price performance of XLF, versus its 200 day moving average:
Looking at the chart above, XLF's low point in its 52 week range is $47.67 per share, with $56.515 as the 52 week high point — that compares with a last trade of $52.16. Comparing the most recent share price to the 200 day moving average can also be a useful technical analysis technique -- learn more about the 200 day moving average ».
Exchange traded funds (ETFs) trade just like stocks, but instead of ''shares'' investors are actually buying and selling ''units''. These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. Each week we monitor the week-over-week change in shares outstanding data, to keep a lookout for those ETFs experiencing notable inflows (many new units created) or outflows (many old units destroyed). Creation of new units will mean the underlying holdings of the ETF need to be purchased, while destruction of units involves selling underlying holdings, so large flows can also impact the individual components held within ETFs.
Further XLF Research:
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

XLF, MS, WFC, C: ETF Outflow Alert

Key Points
The SpaceX IPO reportedly was oversubscribed by two times.
The IPO is allocating up to 30% of the raise to retail investors.
This is a complex IPO, and SpaceX is a complex company, so there's a lot that retail investors should know.
The SpaceX initial public offering (IPO) is nearly here, and there couldn't be more hype. The company has captivated the market as a pioneer of the space economy. It is expected to start trading under the ticker SPCX on the Nasdaq Composite on June 12.
The company's founder and CEO, Elon Musk, also has a cultlike following from the companies he has founded and his status as the richest person in the world, with the potential to become the world's first trillionaire.
Will AI create the world's first trillionaire? Our team just released a report on the one little-known company, called an "Indispensable Monopoly" providing the critical technology Nvidia and Intel both need. Continue »
SpaceX is expected to be the largest IPO ever. The company will likely raise at least $75 billion at a valuation of $1.78 trillion. It's a huge day for the market and retail investors, who will get to play an outsize role in the IPO. Here are 12 things they should know.
1. SpaceX has three businesses
Investors should understand SpaceX's three businesses, which have similarities but are also very different.
The first business is the space launch unit, in which SpaceX builds rockets that can transport astronauts into space. The company's special sauce is its ability to reuse rockets, which enables it to launch at a much lower cost than ever before. As of March 31 of this year, it had completed 650 orbital launches.
SpaceX's second unit is connectivity: its Starlink low-Earth-orbit satellite internet business, which provides high-speed internet worldwide, even in areas with limited access to traditional internet infrastructure. The company has achieved this by launching over 10,000 satellites into orbit, aiming to eventually reach over 40,000. Starlink now has over 10 million subscribers.
The third unit is its artificial intelligence (AI) division, which it acquired when the company bought another company Musk owned, xAI, in a deal valued at $250 billion. xAI comprises the social media platform X, Grok intelligence, and several data centers. The unit also plans to develop a huge factory for its Terafab chip manufacturing in partnership with Tesla and Intel.
2. Starlink is the most profitable
Of the three units, Starlink is the most profitable thus far. The unit generated a $4.4 billion operating profit in 2025 and nearly $7.2 billion in adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA). In the first month of 2026, it generated a $1.2 billion operating profit and nearly $2.1 billion of adjusted EBITDA.
The financial strength makes sense given that Starlink has a subscription model that generates monthly recurring revenue. The company did see monthly average revenue per user (ARPU) decline from $86 in the first quarter of 2025 to $66 in the first quarter of 2026 as it rolled out lower-priced plans internationally.
3. AI has the most potential with a $26.5 trillion total addressable market
While Starlink has performed the best so far, the AI unit has performed the worst. In 2025, it generated an operating loss of roughly $6.4 billion and an adjusted EBITDA loss of $1.2 billion. The unit also had over $20 billion of capital expenditures in 2025 and the first quarter of 2026.
However, Musk has ambitions to put data centers into space, and if the Terafab facility comes to fruition, it would be one step closer to sovereign AI, in which the company has complete control over the AI stack from the intelligence to the chips to the data centers.
SpaceX, in its registration statement, said it believes the company has a total addressable market of $28.5 trillion, which is within shouting distance of the total U.S. gross domestic product. Of that number, $26.5 trillion is attributed to the AI unit, largely due to enterprise applications, which seem to broadly encompass AI solutions for consumers, businesses, and governments.
4. Goldman has reportedly said AI could multiply revenue by a factor of 100 by 2030
AI has so much potential that investment bankers at Goldman Sachs, one of the lead underwriters on the IPO, supposedly told prospective investors during SpaceX's road show that the AI unit is projected to grow revenue 100-fold by 2030.
Citing anonymous sources, the Financial Times reported that Goldman expects the AI unit to grow revenue from $3.2 billion in 2025 to $322 billion by 2030. Collectively, Goldman projects that SpaceX's revenue would grow from $18.7 billion in 2025 to $474 billion in 2030.
If that were true, investors would be buying SpaceX at slightly under four times 2030 revenue, which sounds a lot better than 96 times 2025 revenue.
5. SpaceX has begun to flex its muscles in its AI division
While Goldman's projection sounds outlandish, SpaceX has begun to show just how quickly it can ramp up revenue. In its prospectus, management unveiled a deal with Anthropic in which it will rent computing capacity in its data centers to Anthropic for $1.25 billion per month over the next three years.
More recently, SpaceX announced a deal with Alphabet's Google to lease computing capacity for $920 million per month. Combined with the Anthropic deal, that's already $2.2 billion per month, or over $26 billion per year.
Keep in mind that the deals aren't binding. Google can cancel the agreement with 90 days' notice starting in 2027, but this shows the potential power of the AI unit.
SpaceX has over 1 gigawatt of computing capacity, so it would likely need to build new data centers to keep scaling up. It's also unclear if its capacity will be this constrained forever, but Musk and the company have broad ambitions to launch data centers into space.
6. Musk will have unprecedented control
Prospective investors would be wise to make sure they like Musk at the helm of the company, because he'll be virtually impossible to remove as CEO. Largely through Class B super-voting shares, Musk controls over 85% of the company's combined voting power. After the IPO, he'll still control 82%.
7. The IPO is reportedly oversubscribed by twofold
Citing anonymous sources, Reuters recently reported that SpaceX's road show has been a success, with the IPO running two times oversubscribed, meaning there is $150 billion of investor demand.
In addition to its $75 billion raise, the underwriters have the option to purchase another $11.7 billion in shares. While it sounds great, being over two times subscribed on a popular IPO is not actually uncommon or that impressive.
However, considering it raised more than double that of Saudi Arabian Oil's IPO, the largest one until SpaceX, it certainly seems impressive, given the amount of capital being raised.
8. SpaceX is setting aside 30% of the IPO for retail investors
In another unprecedented move, SpaceX is allocating as much as 30% of the IPO to retail investors, who have previously been big fans of Musk and Tesla. Normally, companies will only allocate 5% to 10% to retail.
Investors will be able to request shares on five major brokerages, according to Barron's, including Robinhood, SoFi, Charles Schwab, Fidelity, and Morgan Stanley's E*TRADE.
The ability for so many retail investors to get shares is exciting, but it could also make the stock more volatile, so they should be prepared for that.
9. The stock will be in most major market indexes within weeks of trading
Due to SpaceX's size, most market indexes have implemented new fast-track entry rules and waived profitability requirements to allow the company to join quickly.
Jacob Friedman, an investment manager at Focused Wealth Management, said the stock could be in nearly every major U.S. equity index within about three weeks of trading, according to MarketWatch. That means that every index fund and exchange-traded fund tracking these indexes must buy the stock.
It also means these funds are going to absorb a considerable amount of the shares sold in the IPO early, which could support the stock and take it high in the early weeks of trading.
10. It will have to wait to join the S&P 500
The broader benchmark S&P 500 index considered adopting new rules to fast-track SpaceX's entry, but ultimately chose not to pass them, meaning it will not be able to join the index until one year after it begins trading. The company will also have to be profitable.
11. Experts expect SpaceX to suck up liquidity from the market
While there seems to be strong demand for the IPO, at least given its size, all the flows into SpaceX may come from outflows from other names. With so much potentially going into retail portfolios, it's possible this cohort sells other stocks to make room for the IPO. This could put pressure on the market.
"Selling flows in recent winners and levered products from retail to invest in SpaceX could be very large," Greg Boutle, head of U.S. equity derivative strategy at BNP Paribas, said in a recent research note, according to Fortune.
Boutle projects that retail and passive investors could unload $50 billion of other stocks to raise capital for SpaceX.
12. Insiders and company employees have a staggered lockup period
Lockup provisions prevent company insiders with a large stake in the company -- as well as employees with shares -- from selling their shares immediately after a company goes public. The standard lockup policy is about 180 days.
However, SpaceX has a staggered lockup policy. On the day of trading after SpaceX reports its earnings results for the quarter ended June 30, those subject to the lockup period will be able to sell 20% of their shares. Another 10% can be sold if the stock is up at least 30% from the IPO price.
After that, insiders and employees will be able to sell an additional 7% of their shares on the 70th, 90th, 105th, 120th, and 135th days after the IPO. All shares will be eligible for sale 180 days after the IPO. The lockup does not apply to Musk, who must wait one year to sell any of his stock.
Where to invest $1,000 right now
When our analyst team has a stock tip, it can pay to listen. After all, Stock Advisor’s total average return is 942%* — a market-crushing outperformance compared to 206% for the S&P 500.
They just revealed what they believe are the 10 best stocks for investors to buy right now, available when you join Stock Advisor.
*Stock Advisor returns as of June 11, 2026.
Charles Schwab is an advertising partner of Motley Fool Money. Bram Berkowitz has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet, Goldman Sachs Group, Intel, and Tesla. The Motley Fool recommends Charles Schwab and recommends the following options: short June 2026 $97.50 calls on Charles Schwab. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.