SpaceX Just Made Its Market Debut. Here's What Investors Need to Know.

SpaceX (NASDAQ: SPCX) raised $75 billion for the biggest initial public offering ever, and the stock surged more than 20% today in its first moments of trading on the Nasdaq. The Elon Musk-led company sold shares at $135 apiece, the stock opened at $150 and quickly jumped to $165, valuing the company at more than $2.1 trillion.

SpaceX's IPO has drawn much attention and excitement in recent days due to its sheer size as well as the company's presence in three compelling growth markets: rocket launches, artificial intelligence (AI), and satellite-based internet services. The presence of Musk, known for his focus on innovation, has also made some investors sit up and take notice.

Now, as SpaceX begins its story as a publicly traded company, here's what investors need to know.

Image source: Getty Images.

SpaceX shares for retail investors

So, first, let's go through the technical points of what is unfolding. SpaceX confirmed on June 11 that it would sell more than 555 million shares for $135 apiece as part of the offering. Musk initially aimed to allocate 30% of the IPO shares to retail investors, according to early press reports. But a source familiar with the matter told CNBC that the company cut that to the low-20% range, likely due to high demand from institutional investors. Even at this level, the SpaceX IPO remains a huge event for retail investors, as they usually have access to only 5% to 10% of IPO shares.

SpaceX also stands out from the general IPO crowd as it may be on track to enter a major index sooner than what's happened in the past. The Nasdaq-100 now will admit IPO companies after only 15 trading days if their market cap ranks within the top 40 stocks currently in the index. That implies a market value of about $121 billion, and SpaceX clearly makes it past that level. Prior to this, companies would have to wait three to 14 months for inclusion.

This early inclusion is important as it creates additional demand for the shares. Managers of funds tracking the Nasdaq-100 would have to buy SpaceX shares in order to continue mimicking the index's performance. The S&P 500 hasn't modified its entry criteria, meaning SpaceX must wait at least 12 months to be considered for inclusion.

When longtime holders may sell

SpaceX stock also may experience some movement when longtime shareholders are authorized to sell some of their shares -- and this could represent downward pressure. I recently wrote about the lockup period details, and one of the first dates to watch happens two days after the second-quarter earnings report in late July.

And now that SpaceX has officially made its market debut, you may be wondering whether you should rush to get in on this exciting growth story. This depends on your investment strategy and appetite for risk. SpaceX has made some interesting accomplishments so far -- from becoming a leader in rocket launches to generating impressive growth in its Starlink satellite connectivity business. But the company must invest heavily to support current projects and future goals, particularly in the business of AI. SpaceX's capital expenditures for that unit alone last year totaled $12 billion, and this helped push the company to a loss of $4.9 billion.

It's also important to remember that for a company of this market value, revenue is slim compared to its trillion-dollar peers. For example, while SpaceX reported annual revenue of $18 billion last year, Amazon, which has a market value of $2.5 trillion, reported revenue of more than $700 billion and net income of $77 billion. So, after the initial flurry of excitement about this new IPO stock settles, investors may opt for some of the market giants that come with less risk.

All of this means that aggressive investors may aim to buy a few shares on an early dip -- but most other investors might want to watch at least an earnings report or two before rushing to get in on SpaceX.

Adria Cimino has positions in Amazon. The Motley Fool has positions in and recommends Amazon. The Motley Fool has a disclosure policy.