SpaceX IPO: Should You Buy?

SpaceX IPO: Should You Buy? How We’re Thinking About It

There are certain companies that become bigger than their industry.

They change how investors think about an entire category.

For years, space exploration stocks were treated as speculative ideas, interesting but difficult to value. That has started to change. Companies tied to satellite communications, launches, and space infrastructure have attracted growing investor attention, and in many cases, stock prices have moved sharply higher.

If and when SpaceX goes public, it will likely become the company at the center of that conversation.

The question is not just whether investors should buy the IPO. It is also how to think about positioning before it happens.

Why Investors Are Paying Attention

If you already own companies like Rocket Lab (RKLB) or AST SpaceMobile (ASTS), you probably already understand why excitement around a potential SpaceX IPO is building.

These stocks have experienced major moves as enthusiasm around space infrastructure has grown. Investors are becoming more comfortable with the idea that space is no longer just an ambitious concept. It is increasingly becoming an investable industry.

There is another factor at work here as well.

Industries often move in cycles. Software had its moment. Semiconductors surged during the AI boom. Rare earth materials gained momentum as supply chain concerns increased.

Right now, space infrastructure appears to be entering one of those periods where investor interest is accelerating.

That alone does not guarantee success, but it does matter.

Strong themes tend to attract capital, and capital often pushes growth stories further than many initially expect.

What SpaceX Actually Does

One reason this IPO could be different is because many people still think of SpaceX as simply “the rocket company”— but its reach is much broader than that.

SpaceX generates revenue through multiple areas, including:

• Launch services, sending satellites and payloads into orbit
• Government and defense contracts, including partnerships with NASA and the Department of Defense
• Starlink, its rapidly growing satellite internet business
• Satellite infrastructure and communications

In many ways, SpaceX resembles a combination of aerospace, telecommunications, infrastructure, and technology.

That diversification is what sets SpaceX apart.

Investors are not simply betting on rocket launches. They are gaining exposure to a business with multiple ways to grow over time.

For many, Starlink may ultimately become one of the most interesting parts of the story, especially as global internet access continues to expand.

The Space Economy Buildout

Many investors assume that once stocks start moving, the opportunity is already gone. Sometimes that is true, especially when enthusiasm outruns the underlying business. But there are also moments where early winners are simply signaling that a larger trend is beginning to take shape.

Our view is that space infrastructure may still be in that earlier phase. The recent strength in space-related stocks may be less about the opportunity peaking and more about investors beginning to recognize the long-term potential of the industry.

So… Is SpaceX a Buy at IPO?

Assuming SpaceX does eventually go public, our answer is yes, with context.

This feels less like a short-term trade and more like a long-term position.

Part of that comes down to industry momentum, but part of it comes down to the company itself. SpaceX already operates at a scale and level of brand recognition that most IPOs never achieve.

There is also the reality that investors tend to place a premium on companies tied to transformative founders. Whether you agree with that or not, whether you like him or not, it matters. When it comes to Elon Musk, markets have historically shown a willingness to pay for growth potential and long-term vision.

That does not mean valuation will not matter. It always does.

But much like we discussed in our OpenAI IPO article, there are some companies where waiting for a perfect entry point can mean missing the opportunity altogether.

How We’re Thinking About Positioning

For investors who already own space-related names, this becomes an allocation question.

Many companies in the industry have already had strong runs, particularly those tied to satellite communications and launch infrastructure. That does not mean they cannot continue higher, but it does mean expectations are changing.

In some cases, we think it makes sense to reassess where the strongest long-term opportunity may be.

For us, that means preparing for a potential SpaceX position by gradually reducing exposure to some names that have already moved significantly, and temporarily holding those gains in stronger large-cap companies we have continued conviction in.

Think companies like:

• Amazon (AMZN)
• NVIDIA (NVDA)
• Netflix (NFLX)
• Meta (META)
• Google (GOOGL)

The goal is not to cash out and wait for the SpaceX IPO, it is to remain invested in companies we believe in to preserve capital.

What About Tesla Investors?

For investors with large exposure to Tesla (TSLA), the question becomes slightly different.

If your Tesla position has grown into a meaningful percentage of your portfolio, it may be worth considering whether some exposure to SpaceX creates better diversification across Elon Musk’s ecosystem.

This is not about abandoning Tesla.

It is about recognizing that if you believe in Elon Musk’s long-term vision, there may eventually be value in having exposure to more than one of the businesses helping shape that vision.

That approach feels more balanced than making a single concentrated bet.

Why We Think This Is a Hold, Not a Trade

One of the mistakes investors often make with major IPOs is treating them like short-term trading opportunities.

That mindset can work occasionally, but it often distracts from the larger opportunity.

With a company like SpaceX, our view is that the bigger story is likely to play out over years, not weeks or months. Yes, there could be volatility after an IPO. Many large offerings experience early excitement followed by pullbacks as enthusiasm settles and valuation gets sorted out.

But trying to perfectly time those swings can sometimes mean missing the long-term trend altogether.

If SpaceX executes the way many expect, the stronger opportunity may come from simply owning the company through its growth rather than trying to trade every move. In our view, this looks more like a multi-year position, potentially two to three years or longer, rather than a short-term trade.

The Bigger Picture

SpaceX is not the only company we are watching.

Potential IPOs like OpenAI and Anthropic could also reshape parts of the market over the coming years.

What makes this period interesting is that investors may soon have access to companies that have already proven themselves privately and are entering the public market with significant momentum.

That does not mean every opportunity will work perfectly.

But it does mean investors should be paying attention.

Position for the Next Generation of Growth Companies

Major shifts in technology and infrastructure often create new investment opportunities. At Michael Leslie Investments, we help investors think through where those opportunities are developing and how to position thoughtfully for the long term.

Contact Michael Leslie Investments today to discuss how potential IPOs like SpaceX may fit into your portfolio.