Space Exploration Technologies Corp's blockbuster $1.77 trillion IPO reportedly created more than 4,400 employee millionaires, underscoring how equity compensation can generate wealth alongside shareholder returns. The listing has also opened new avenues for ETF investors to gain exposure to the aerospace giant through funds like ProShares Ultra SpaceX and Tradr 2X Long SpaceX Daily ETF. As SpaceX integrates into major equity benchmarks, its weighting is expected to grow across broader market and sector ETFs.

Billionaire investor Mark Cuban voiced strong support for broad-based employee ownership during the What It Takes podcast by Unmoderated News. Cuban argued that every CEO, founder, and entrepreneur should grant equity to all employees, not just senior executives, citing his experience at Broadcast.com where roughly 300 employees became millionaires after its acquisition by Yahoo. He suggested governments could encourage this practice by offering lower corporate tax rates to companies that distribute equity more widely.

The renewed focus on employee ownership highlights a common trait among major holdings in technology-focused ETFs. Companies such as Nvidia Corp, Microsoft Corp, Alphabet Inc, Apple Inc, Amazon.com Inc, and Broadcom Inc have long used stock awards to attract talent. These firms dominate portfolios in funds like the Invesco QQQ Trust, Technology Select Sector SPDR Fund, and Vanguard Information Technology ETF.

Academic research supports the economic impact of employee ownership. A 2021 Harvard Business School study, cited by Fortune, found that if all private U.S. companies became 30% employee-owned, household wealth would roughly double. Separate studies have linked employee ownership to higher productivity, lower turnover, and greater corporate resilience. For ETF investors, SpaceX's public debut reinforces the connection between broad-based equity compensation and long-term market performance.

Pershing Square Inc. founder Bill Ackman has publicly backed Elon Musk and Space Exploration Technologies Corp. (SpaceX), describing the commercial spaceflight company as a "very interesting business," while simultaneously explaining why the firm does not hold a position in the stock.

Ackman on SpaceX: Admiration With Reservations

During an interview with Money News Network on Monday, Ackman was asked to choose between Anthropic, OpenAI, and SpaceX as an investment. He noted that Anthropic was the leader in frontier models, while expressing concerns about losses for OpenAI in the "foreseeable future."

On SpaceX, Ackman highlighted the strength of its Starlink division, calling it "enormously profitable" and a "near monopoly" in global satellite-based internet services. He also pointed out that SpaceX was the only company capable of providing businesses with the ability to "rent 100,000 GPUs."

Ackman described Musk as the "most talented technologist, entrepreneur of our generation," but raised concerns about the company's valuation. He noted that the "price" — at "six or seven" trillion — left less upside for investors. "The word is never bet against Elon," Ackman said, underscoring his respect for Musk's track record.

Despite this praise, Ackman was clear about why SpaceX does not feature in Pershing Square's portfolio, stating the company did not have the "degree of predictability that we're looking for."

Key Views on SpaceX

Ackman's Views on Meta, Amazon, and Microsoft

Ackman also shared his perspective on other major technology companies during the interview. He described Microsoft Corp, Meta Platforms Inc., and Amazon.com Inc. as "cheap stocks."

"If Microsoft and Amazon and Meta are cheap stocks, which we believe they are, you could argue the market's not expensive at all," Ackman noted. To illustrate Amazon's value proposition, he cited the example of purchasing a book at a brick-and-mortar store versus ordering it on Amazon, which he said can deliver the book "in two hours."

Broader Market Sentiment on SpaceX

Ackman's comments came against a backdrop of growing bearish sentiment around SpaceX shares. Economist and Echelon Wealth Partners co-founder Peter Schiff argued on Monday that the AI bubble had officially popped, pointing to SpaceX's stock decline as evidence. Schiff had previously suggested that SpaceX's decline could spell the end for the "overpriced" U.S. stock market.

Investor Gary Black of The Future Fund LLC also expressed bearish sentiments on SpaceX, stating that the company's market capitalization of approximately $1.7 trillion should not "mathematically" result in an enterprise value-to-revenue multiple of about 40 times.

According to Benzinga Edge Rankings, SpaceX fails to provide a favorable price trend in the short, medium, and long term. SpaceX shares were down 1.56% at $122.06 during pre-market trading on Tuesday.