(PRO Views are exclusive to PRO subscribers, giving them insight on the news of the day direct from a real investing pro. See the full discussion above.) Jay Woods, chief market strategist at Freedom Capital Markets, joined the chorus of voices on Wall Street casting doubt over whether to jump into SpaceX’s initial public offering. SpaceX is slated to begin trading on the Nasdaq on Friday. The reusable rocket company marketed its IPO at a fixed price of $135 per share and plans to sell 555.6 million shares. “This is a tricky one,” Woods told CNBC Pro subscribers ahead of the IPO. “If you want to be in it, get in it small.” With that share price, SpaceX would be worth $1.77 trillion assuming its EchoStar and Cursor transactions go through. That would make SpaceX the seventh-biggest company in the U.S. by market cap. SpaceX would notably beat out Tesla , the electric vehicle maker also run by billionaire entrepreneur Elon Musk . “The valuations are something we can’t compare to,” Woods said. “I would not be chasing it at these levels.” Woods isn’t the only one expressing concern ahead of SpaceX’s debut. Morningstar analysts called SpaceX “significantly overvalued” in a note to clients last week. The firm’s team said it values SpaceX at around half of what the company is expected to debut at. “Investors will have opportunities to buy the stock at more attractive levels after the IPO,” Morningstar’s team wrote. What’s more, stocks tied to major IPOs tend to struggle in the first year after they go public, according to Truist Wealth. Instead of racing into the IPO, investors should look for opportunities to “leg into” the company, Woods said. “There will be pullbacks,” he said. “It’s going to be truly volatile.” (Watch full video above.) The veteran trader also hits on the following topics: What to watch for in Oracle and Adobe earnings this week. The end of the S & P 500 ‘s weekly winning streak on the back of strong jobs data. (This weekly video is exclusively for CNBC PRO subscribers.)
