3 Reasons to Buy SpaceX Stock at Its IPO -- and 2 Reasons to Wait

1 hour ago 1

James Brumley, The Motley Fool

Sun, June 7, 2026 astatine 4:35 PM CDT 3 min read

Assuming each goes arsenic planned, Elon Musk's privately owned SpaceX volition spell nationalist connected Friday, June 12. Although immoderate retail investors whitethorn beryllium fortunate capable to entree shares astatine the archetypal nationalist offering, astir radical volition lone person the enactment to buy the banal successful the unfastened marketplace aft the fact.

And this begs the question: Should you bash so? Here are immoderate things to consider.

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A seated capitalist  is reasoning  portion    staring astatine  a laptop screen.

Image source: Getty Images.

Reasons to bargain

1. SpaceX's businesses are the aboriginal

You cognize it champion arsenic the abstraction launch/rocket company, but that's not each SpaceX is. SpaceX besides owns the societal media level X (formerly Twitter), the artificial quality (AI) level Grok, and satellite-based net work Starlink. It's adjacent processing a microchip business. All these businesses play a salient relation successful humanity's foreseeable future.

2. Enthusiasm is stunningly beardown

Hype surrounding a institution connected the verge of an IPO is thing new. The buzz surrounding this peculiar nationalist offering, however, is palpable. It's conceivable that this enthusiasm unsocial could thrust beardown gains close retired of the gross and for a portion ... though not indefinitely. (See below.)

3. Positive currency travel

Finally, though SpaceX isn't technically profitable -- and whitethorn not beryllium anytime soon -- excavation deeper. It's lone unprofitable due to the fact that it's spending truthful overmuch wealth buying oregon gathering assets that volition thrust the gross that's to come. The businesses, arsenic they run close now, are technically generating affirmative currency flow.

Even if it's reporting nett  losses, SpaceX inactive  boasts affirmative  operational currency  flow.

Data source: SpaceX archetypal nationalist offering prospectus.

Obviously, the currency travel fig volition request to widen, and investing outlays volition request to beryllium curbed if the company's ever going to execute fiscal viability. Nonetheless, it's encouraging to spot that simply operating its businesses -- adjacent astatine a tiny standard -- isn't bleeding money.

Reasons to hold

1. Most recently IPO'd stocks are trading down wrong a fewer weeks

As seasoned investors who've seen a fewer tin attest, astir recently IPO'd stocks are usually trading down by rather a spot a fewer weeks to a fewer months pursuing the surge that tends to materialize instantly aft their nationalist offering (when the hype is inactive strong). Uber Technologies, Meta Platforms (then Facebook), Alibaba, and Visa are conscionable immoderate of the large names that person logged large gains since their archetypal nationalist offerings, but were good into the reddish soon aft their IPOs.

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