(PRO Views is exclusive to PRO subscribers and gives you insight on the day’s news directly from real investment pros. See the full discussion above.) Jay Woods, chief market strategist at Freedom Capital Markets, also joined the chorus of voices on Wall Street questioning whether to jump on SpaceX’s initial public offering. SpaceX is scheduled to begin trading on the Nasdaq on Friday. The reusable rocket company plans to sell 555.6 million shares in its IPO at a fixed price of $135 per share. “This is a tough question,” Woods told CNBC Pro subscribers ahead of the IPO. “If you want to participate, participate small.” At that stock price, assuming the EchoStar and Cursor deals go through, SpaceX would be worth $1.77 trillion. That would make SpaceX the seventh-largest company in the U.S. by market capitalization. SpaceX, in particular, will beat Tesla, the electric car maker run by fellow billionaire entrepreneur Elon Musk. “Valuations are not comparable,” Woods said. “I’m not going to chase at this level.” Woods is not the only one to express concerns ahead of SpaceX’s debut. Morningstar analysts called SpaceX “significantly overvalued” in a note to clients last week. The company’s team said it is valuing SpaceX at about half of what the company is expected to debut at. “Investors will have an opportunity to purchase the stock at a more attractive price following the IPO,” the Morningstar team wrote. Additionally, stocks associated with large IPOs tend to struggle in the first year after going public, according to Trust Wealth. Rather than competing for an IPO, investors should look for opportunities to “dip into” the company, Woods said. “There will be some backlash,” he said. “It’s going to be really volatile.” (Watch the full video above.) The veteran trader also touches on the following topics: What to watch in this week’s Oracle and Adobe earnings. The S&P 500’s weekly winning streak ended on the back of strong employment data. (This weekly video is exclusive to CNBC PRO subscribers.)
