The SpaceX IPO is igniting a rocket-fueled frenzy in these stocks and ETFs
Retail investors aren’t waiting until June to get on board with the SpaceX (SPAX.PVT) IPO.
Inside the action: Retail investors are increasingly piling into space-themed stocks and ETFs ahead of a potential SpaceX IPO, according to Vanda Research.
Bullish activity takes several forms.
First are space-themed ETFs. Retail investors buying into a basket of space-themed ETFs are now running at their strongest pace since 2021, according to Vanda research. The Procure Space ETF (UFO) is emerging as an outstanding favorite.
“UFO purchases of 1 million net worth of goods reached a record high of $6.2 million on April 30 and are currently sitting at $3.8 million – nearly three times the strength of the previous year,” Vanda said.
Another catch of strong interest are the words “picks and shovels”.
“Redwire (RDW) – which provides satellite infrastructure and spacecraft components – emerged as the clear selling favorite, attracting 41.1 million net purchases in the last 20 trading days,” Vanda said. “Selling interest is growing in smaller and more speculative space names including Sidus Space (SIDU), Satellogic (SATL) and Planet Labs (PL), bolstering selling interest across the space trade beyond the more established proxy names.”
The nuts and bolts of the SpaceX IPO: SpaceX is reportedly eyeing a June 11 price for its IPO and a June 12 Nasdaq (^IXIC) listing. Goldman Sachs is leading the deal, with 21 banks behind it. At an unheard-of slow pace, retail investors were allocated 30% of the float, three times the rate.
The company led by Elon Musk is targeting a valuation of $1.75 trillion in its listing, which will put it behind Nvidia (NVDA), Apple (AAPL), Microsoft (MSFT), Alphabet (GOOG, GOOGL), and Amazon (AMZN) in the list of the most valuable companies in the world.
SpaceX reported $18.7 billion in total revenue by 2025, a 33% year-over-year jump. The Starlink satellite service alone generated $11.4 billion – or 61% of the total. It’s a real engine of growth here and the reason the center’s money is going.
But there’s a catch: SpaceX posted a GAAP loss of $4.28 billion in the first quarter of this year alone and carried a deficit of $41.3 billion — so don’t let the hype blind you to the danger.
The proceeds of the IPO are reportedly earmarked for Starship’s highest flight rate, AI-powered orbital data centers, and early grounding of a permanent moon base.
Bottom line: The excitement for the SpaceX IPO is partly due to the company’s technology and the allure of Musk’s exposure beyond Tesla ( TSLA ).
