Scared to Buy SpaceX Shares? These 3 Stocks Give You a Back Door In.
SpaceX's IPO may create opportunities beyond the stock itself by strengthening the broader ecosystem of lunar, satellite, and communications companies tied to the expanding space economy.
Scared to Buy SpaceX Shares? These 3 Stocks Give You a Back Door In.
Overview
SpaceX's public debut is taking place right now and it has captured Wall Street's attention, but investors should remember that even great companies can be volatile stocks after an initial public offering (IPO). At a roughly $1.75 trillion valuation, expectations are already extraordinarily high, and history is full of highly anticipated offerings that experienced sharp swings as the market digested their valuations. For many investors, the better opportunity may not be buying SpaceX itself but investing in companies that stand to benefit from the growth of the broader space economy that SpaceX is helping to build.
Something gets overlooked in IPO frenzies like this. SpaceX is not only a company going public and teasing people to open a brokerage account. It is an infrastructure event. The build-out that follows its listing -- Starlink's constellation expansion, new ground stations, a growing commercial launch manifest, and the Terafab chip facility -- requires customers, partners, and payload operators who need to put things in orbit.
Details
Three publicly traded companies are already part of that ecosystem in ways the market hasn't fully priced in.
Source
Originally published at www.fool.com.
