Embracing the Joy of Missing Out on SpaceX’s I.P.O.

Elon Musk is on the verge of becoming a trillionaire. His ventures, particularly SpaceX, are set to create significant wealth for many of his employees, who are poised to hit seven-figure jackpots through the company’s upcoming initial public offering (IPO).

Individual investors are eagerly awaiting the chance to purchase shares at the $135 opening price. The demand is so high that some brokerage firms are essentially conducting a lottery for these $135 tickets.

Feeling the fear of missing out (FOMO)? It’s a common sentiment, but it’s essential to remember that you can still win by choosing not to participate this week. Embracing JOMO, or the joy of missing out, can be a healthy alternative to FOMO.

SoFi, one of the brokerage firms allowing customers to participate in the IPO, offers diverse perspectives on whether to invest. In 2024, they described their efforts to provide indirect access to SpaceX through private-market funds as “exciting” and “empowering.” By 2025, they published an article titled “How to Avoid FOMO Trading.”

Investors who decide to dive in might execute a perfect flip by purchasing shares at $135 and selling them for a higher price, provided they aren’t bound by lockup periods or brokerage penalties for quick sales. However, they will need to invest significantly to reap substantial rewards.

On the other hand, buy-and-hold investors may face challenges depending on how long they retain their shares. As noted by my colleague Jeff Sommer, the price-to-sales ratio for SpaceX is exceptionally high. Morningstar values the stock at $63. If their analysts are correct, missing out on buying SpaceX at $135 may not be a cause for regret.

For SpaceX employees and early-stage investors, it’s worth considering the risks involved. They are betting on Musk, who has been known to be erratic, distracted, and frequently destructive, despite generating substantial profits for Tesla shareholders who invested at the right time.

While many employees may love their work in satellite internet and space exploration, the path to wealth has likely involved considerable effort over time.

“There is a lot of slow, boring work that leads to something this exciting,” said Milo Benningfield, a veteran financial planner in San Francisco. He emphasizes that moments like this prompt us to reflect on our day jobs: “What would you enjoy doing along the way and appreciating for its own sake?”

In the mid-2000s, Katy Song witnessed the stock market boom and subsequent bust as a software and semiconductor banker in San Francisco. Transitioning to financial planning, she now serves clients who are either employees at companies poised for IPOs or young families navigating financial challenges.

For the latter group, she provides a basic budget and addresses specific questions.

“I show them their goals and put price tags on those goals,” Ms. Song explains. “In none of these cases is someone going to sell 100 percent of their rollover I.R.A. and buy SpaceX.”

She often asks, “When you said you wanted security and safety, do you think investing directly in SpaceX is going to feel that way?” Most can answer that question themselves.

Not everyone prioritizes safety and security, especially younger investors. For those who can afford to gamble, investing can be thrilling, provided they don’t become addicted. However, many may not have the opportunity to buy IPO shares, and direct exposure to SpaceX likely won’t hinder their long-term financial goals.

Others may have established goals before SpaceX’s offering, and the current buzz is unlikely to alter those. Nevertheless, any feelings of envy can serve as a prompt to reassess medium- and long-term objectives.

Finally, consider this question: What have you won already? You likely have a list of accomplishments.

For me, a few highlights include:

I’ve spent 32 years saving diligently and benefiting from the market through index funds, and it has worked so far.

My immediate family has faced the cancer gauntlet six times without succumbing to the disease.

I’ve enjoyed writing this column for 18 years without losing interest.

Congratulations to the SpaceX welders, mariners, and coders. Best of luck to the individual investors participating in the lottery on Friday.

However, my support is especially strong for the JOMO crowd. I plan to turn off the television on Friday and indulge in some ice cream.

Elon Musk is on the verge of becoming a trillionaire. His ventures, particularly SpaceX, are set to create significant wealth for many of his employees, who are poised to hit seven-figure jackpots through the company’s upcoming initial public offering (IPO).

Individual investors are eagerly awaiting the chance to purchase shares at the $135 opening price. The demand is so high that some brokerage firms are essentially conducting a lottery for these $135 tickets.

Feeling the fear of missing out (FOMO)? It’s a common sentiment, but it’s essential to remember that you can still win by choosing not to participate this week. Embracing JOMO, or the joy of missing out, can be a healthy alternative to FOMO.

SoFi, one of the brokerage firms allowing customers to participate in the IPO, offers diverse perspectives on whether to invest. In 2024, they described their efforts to provide indirect access to SpaceX through private-market funds as “exciting” and “empowering.” By 2025, they published an article titled “How to Avoid FOMO Trading.”

Investors who decide to dive in might execute a perfect flip by purchasing shares at $135 and selling them for a higher price, provided they aren’t bound by lockup periods or brokerage penalties for quick sales. However, they will need to invest significantly to reap substantial rewards.

On the other hand, buy-and-hold investors may face challenges depending on how long they retain their shares. As noted by my colleague Jeff Sommer, the price-to-sales ratio for SpaceX is exceptionally high. Morningstar values the stock at $63. If their analysts are correct, missing out on buying SpaceX at $135 may not be a cause for regret.

For SpaceX employees and early-stage investors, it’s worth considering the risks involved. They are betting on Musk, who has been known to be erratic, distracted, and frequently destructive, despite generating substantial profits for Tesla shareholders who invested at the right time.

While many employees may love their work in satellite internet and space exploration, the path to wealth has likely involved considerable effort over time.

“There is a lot of slow, boring work that leads to something this exciting,” said Milo Benningfield, a veteran financial planner in San Francisco. He emphasizes that moments like this prompt us to reflect on our day jobs: “What would you enjoy doing along the way and appreciating for its own sake?”

In the mid-2000s, Katy Song witnessed the stock market boom and subsequent bust as a software and semiconductor banker in San Francisco. Transitioning to financial planning, she now serves clients who are either employees at companies poised for IPOs or young families navigating financial challenges.

For the latter group, she provides a basic budget and addresses specific questions.

“I show them their goals and put price tags on those goals,” Ms. Song explains. “In none of these cases is someone going to sell 100 percent of their rollover I.R.A. and buy SpaceX.”

She often asks, “When you said you wanted security and safety, do you think investing directly in SpaceX is going to feel that way?” Most can answer that question themselves.

Not everyone prioritizes safety and security, especially younger investors. For those who can afford to gamble, investing can be thrilling, provided they don’t become addicted. However, many may not have the opportunity to buy IPO shares, and direct exposure to SpaceX likely won’t hinder their long-term financial goals.

Others may have established goals before SpaceX’s offering, and the current buzz is unlikely to alter those. Nevertheless, any feelings of envy can serve as a prompt to reassess medium- and long-term objectives.

Finally, consider this question: What have you won already? You likely have a list of accomplishments.

For me, a few highlights include:

I’ve spent 32 years saving diligently and benefiting from the market through index funds, and it has worked so far.

My immediate family has faced the cancer gauntlet six times without succumbing to the disease.

I’ve enjoyed writing this column for 18 years without losing interest.

Congratulations to the SpaceX welders, mariners, and coders. Best of luck to the individual investors participating in the lottery on Friday.

However, my support is especially strong for the JOMO crowd. I plan to turn off the television on Friday and indulge in some ice cream.