Microsoft’s Gaming Glitch

Sorry. We have no SpaceX news (if you define news as something you don’t already know). The rocket-and-cloud firm on Thursday priced its IPO at the $135 offering number announced last week, as it was widely expected to. Check back tomorrow, when shares start to trade. (Here’s a clue about the possible opening price.) Not to be a wet blanket, but don’t forget that a more telling indicator of investor sentiment is where the stock is trading in a year. (See University of Florida IPO expert Jay Ritter discussing SpaceX on The Information’s TITV on Thursday.) 

Here’s a fun fact, though: SpaceX’s IPO valuation of around $1.75 trillion is 60% of Microsoft’s market capitalization, even though SpaceX’s 2025 revenue was just 6% of Microsoft’s. We’re not pointing this out to remind you yet again that SpaceX is overvalued. The point is that Microsoft, whose shares are down 19% so far this year, is undervalued. While that’s likely due primarily to worries about the impact of AI competition on its software business and the costs of its AI data center build-out, it doesn’t help that its gaming business is in shambles.