Investors anticipate that SpaceX will perform as well as Tesla (TSLA) in the decade after its initial public offering. To invest in SpaceX before CEO Elon Musk takes it public, investors have several options.
Background
CEO Musk is forecasting SpaceX to make around $15.5 billion in revenue this year. Commercial revenue from space activities will be more than that of NASA’s budget of $1.1 billion.
Starlink satellite service is the primary revenue driver for its commercial revenue. Investors may consider AST SpaceMobile (ASTS) as an alternative. Viasat (VSAT) is also in the communications equipment market. However, VSAT stock is stuck trading below $10 and has a $1.2 billion market capitalization. The short float is 22.94%.
Investors may take a position in SpaceX before its IPO. Mutual funds that hold a position include Fidelity Contrafund (FCNTX), Baron Partners Fund (BPTRX), Scottish Mortgage Investment Trust (STMZF), and Edinburgh Worldwide Investment Trust (EWIIF).
Rocket Lab (RKLB) is also an alternative to SpaceX. The space company’s services include launch, spacecraft design and manufacturing, and in-orbit solutions. Late last month, the company acquired Geost. This would strengthen its positioning for winning more space-based security contracts.
RKLB stock typically faces selling pressure near $30. However, once it wins more contracts, revenue growth will accelerate. The stock will trade in the $35 - $50 range over the longer term. Do Not Sell My Information
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