The IPO hype is real AF these days. Case in point: Voyager Technologies ripped the doors off yesterday and made off with the silverware in an 82% surge (up another 10% on today’s price action). Which is quite amazing considering Voyager was supposed to be a garden-variety defense contractor IPO: 11 million shares, $26–$29 each, maybe a few polite claps from some DC-adjacent GARP funds. 

(Source: Giphy) 

Then FOMO did what FOMO does. The deal bloated to 12.3 million shares at $31. By market close, you could buy those same shares for $56.48, assuming you enjoy paying double for the privilege of owning a company that’s hemorrhaging cash like an eBay seller who just discovered “free shipping” isn’t actually free.

For more context, Voyager raised $383 million to clinch a $3.2 billion market cap. That means every $1 of Voyager’s Q1 revenue ($34.5 million) is being valued like it’s a designer drug for institutional portfolio managers. Did I mention the net loss for the same period was $26.9 million? Of course, that’s up from $14.8 million last year, but for most of Wall Street who treat Pied Piper’s theory on revenue like it’s religion… they couldn’t care two sh*ts about “profit”

(Source: Bloomberg) 

Especially since Voyager’s already got a $217.5 million NASA grant to build Starlab, the supposed savior of low Earth orbit after the ISS gets yeeted into the Pacific in 2030. And they aren’t doing it alone. An orgy of companies like Airbus, Mitsubishi, Palantir, and MDA Space are also in bed together with this joint venture. For instance, Palantir even got paid for their prototype with 228,365 Voyager shares (read: cash is for peasants). 

What’s more is that almost 84% of Voyager’s revenue comes from the US government and its delightful collection of “affiliates”. Translation: If Uncle Sam decides he wants a new jungle gym, Voyager’s the one who gets handed the gold-plated wrench. However, if the contract spigot slows, then Voyager is left treading water. But, but, but… factor in Trump’s “Golden Dome” space shield fantasy and the possibility that even a slice of the rumored $175 billion project comes Voyager’s way, it’s all dolla’ dolla’ bills for the company. 

(Source: Giphy) 

As for the IPO itself, Morgan Stanley and JPMorgan cooked ran the books on this one. Janus Henderson and Wellington Management shoved $60 million into this thing before the bell even rang. Which is mind blowing considering the IPO was 20x oversubscribed. Translation: Wall Street has an addiction problem, and Voyager was the next line to snort. 

In the end, Voyager is now the new honest woman in town. Of course, next quarter might look like a crime scene, but for now… they’re every portfolio manager's current fetish. Meaning, place your bets accordingly, and do your due diligence on this one. We’ll see how long the hype lasts. Until next time, friends…

At the time of publishing, Stocks.News does not hold positions in companies mentioned in the article.