SpaceX's IPO Boosts Morgan Stanley, but Earnings Test Loom
SpaceX’s June initial public offering (IPO) raised $75 billion by selling 555 million shares at $135 each. The deal paid Wall Street banks over $74 billion in fees and significantly boosted Morgan Stanley's wealth management arm, which saw a surge of new client assets to nearly $10 trillion. Morgan Stanley stands out for managing SpaceX employee stock plans, capturing more than half the firm’s IPO-related inflows into its Workplace division. However, much of this money has not yet generated fees as it remains in unmanaged accounts. Analysts expect a loss per share when SpaceX reports earnings on August 4. The company faces pressure to deliver strong financial results and details about Starlink revenue and contract breakdowns. Additionally, nearly $99 billion worth of shares will become available for trading after the report, potentially affecting stock price stability.
Topics: Morgan Stanley fees SpaceX IPO Wealth management growth