Story perspectives

SpaceX, OpenAI IPOs Threaten S&P Tech Dominance

5/23/2026

Summary

Hartnett Warns Tech Concentration

On May 22, Bank of America strategist Michael Hartnett warned that SpaceX’s $75 billion S-1 at a $1.75 trillion valuation and OpenAI’s IPO could lift the S&P 500’s tech weighting above 48 percent.
He said valuations over $2.5 trillion would further concentrate the index in a dominant tech sector.
He likened the risk to the Roaring ’20s and Nifty Fifty bubbles and described market conditions as bubbly with price action and low volatility.

Summary

Musk Retains Control

Elon Musk will retain 85.1% voting power after the IPO, as Class B shares carry ten votes each.
COO Gwynne Shotwell and CFO Bret Johnsen each own over $1 billion of SpaceX stock.
Director Antonio Gracias holds 503 million shares worth about $70 billion.
Darsana Capital Partners tied roughly 60 % of its assets to SpaceX, seeking paper gains over $10 billion.
FAA chief Bryan Bedford warned SpaceX’s 10,000-launch-per-year goal could strain regulatory capacity.

History

Historical Context

The October 29 1929 crash erased about $14 billion, a 23 percent plunge that shattered confidence in Wall Street and the Federal Reserve and spurred reforms such as the Glass-Steagall Act and market circuit-breakers. Today, worries that a single founder-controlled firm could dominate a high-tech sector echo those historic concentration risks, prompting regulators to consider tighter oversight.

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Hartnett Warns Tech Concentration

On May 22, Bank of America strategist Michael Hartnett warned that SpaceX’s $75 billion S-1 at a $1.75 trillion valuation and OpenAI’s IPO could lift the S&P 500’s tech weighting above 48 percent.
He said valuations over $2.5 trillion would further concentrate the index in a dominant tech sector.
He likened the risk to the Roaring ’20s and Nifty Fifty bubbles and described market conditions as bubbly with price action and low volatility.

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