Tom Lee says SpaceX IPO fears are overdone

Fundstrat managing partner Tom Lee said investors are overstating the risk that SpaceX’s planned IPO could signal a market peak. In an appearance on CNBC’s Power Lunch on Monday, he argued that there is still plenty of cash available to support the deal. Lee said his clients are worried the debut could come after a sharp run in stocks tied to the artificial intelligence trade, but he считает those concerns misplaced. He said the market has about $7 trillion sitting in cash and that wealthy investors should be able to absorb the offering. He also noted that some traders are watching for possible volatility before the Elon Musk company goes public and around the later expiration of insider lockups. Lee said he does not think those events will repeat the pattern seen during the dotcom era.