Morning Edition · Tuesday, July 7, 2026
From SpaceX to Small Drone Makers, the IPO Wave Meets Reality
Wall Street banks grew optimistic about SpaceX after its large listing, while a small Israeli drone maker's debut showed the risks among smaller companies.
Wall Street banks issued positive recommendations on SpaceX as the quiet period following its large initial public offering ended, with Morgan Stanley setting a 300-dollar price target on Elon Musk's rocket and AI company, the Financial Times reported. The recommendations reflect strong demand among public investors for the largest technology listings.
The situation is different at the other end of the market. In Israel, the autonomous-drone maker Kando Drones, backed by retail entrepreneur Rami Levy, completed a public offering at a valuation of 102 million shekels and raised 19 million shekels, Globes reported. The company, which shifted from flying-taxi ambitions to armed drones during the war, disclosed deepening losses and negative shareholder equity in its filings.
Together the two listings show how selective public markets have become. Prominent names draw price targets and demand, while smaller firms reach the market carrying losses, and investors are pricing that difference sharply.
Part of a tracked trend
Wave of Mega Tech IPOs Tests Public Markets
Over the next 3-6 months marquee private tech firms—SpaceX at a ~$2T valuation and rival AI labs Anthropic and OpenAI—race to public markets, with their listings poised to reset how investors value the AI and frontier-tech industries.
What this means
The wave of technology and defense listings is testing how much risk public investors will absorb. Enthusiasm concentrated in a handful of giant names, alongside skepticism toward loss-making newcomers, shows a market that is open but selective, and that gap shapes how the listings still expected will be received.
What to watch
- Whether SpaceX's share price holds near analysts' targets once the initial enthusiasm settles.
- Trading in Kando Drones after its debut, an indicator of demand for small, unprofitable companies.
- The timing and reception of other large private technology firms weighing public listings.
Observations to monitor, not financial advice.
Synthesized from: Financial Times · Globes
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