Jim Cramer fears SpaceX's IPO could be 'destructive' for the rest of market

CNBC’s Jim Cramer warned that a highly anticipated SpaceX IPO could spark speculative excess and become “destructive” for the broader market. With SpaceX’s prospectus potentially due as soon as next week and a public debut expected in June, media reports put a possible valuation between $1.75–$2 trillion; Cramer said that issuing only a sliver of shares could push an implied valuation as high as $5 trillion. He cautioned that underwriters engineering a huge first-day pop and a wave of blockbuster tech and AI IPOs (e.g., OpenAI/Anthropic) could prompt investors to sell existing holdings to chase new offerings, weighing on the S&P 500. Cramer urged underwriters to avoid repeat dot-com–era style pops to reduce systemic market impact.