The SpaceX IPO Is Closer Than You Think. These Are the Stocks That Win When It Happens.
Key Points
Rocket Lab is launching more rockets and expanding its space services business.
AST’s constellation of high-powered satellites is also expanding rapidly.
- 10 stocks we like better than Rocket Lab ›
SpaceX, the aerospace and AI company founded by Elon Musk, will likely become the largest IPO in history when it goes public on June 12. But at its target valuation of $1.77 trillion, it will be valued at 95 times its 2025 sales. It's also more than four times oversubscribed.
Instead of chasing SpaceX's wild market debut, it's smarter to buy two other stocks that will benefit from the same tailwinds without the stomach-churning volatility: Rocket Lab (NASDAQ: RKLB), which launches reusable orbital rockets like SpaceX, and AST SpaceMobile (NASDAQ: ASTS), which produces Low Earth Orbit (LEO) satellites like SpaceX's Starlink.
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Image source: Getty Images.
Why are both space stocks worth buying?
Rocket Lab and AST don't directly compete with SpaceX, but they'll benefit from growth in the same markets. Rocket Lab has already launched 88 rockets to date, and it's expanding its business with more orbital and spacecraft manufacturing services. AST, which helps telecom companies cover rural areas with wireless satellite connections, plans to have 45 to 60 satellites in orbit by the end of 2026, and up to 248 satellites within the next few years.
From 2025 to 2028, analysts expect Rocket Lab's revenue to more than double, and for AST's revenue to surge more than 26 times. Both stocks are also arguably cheaper than SpaceX relative to their near-term growth potential, but the same rising tide should lift their boats.
Should you buy stock in Rocket Lab right now?
Before you buy stock in Rocket Lab, consider this:
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Leo Sun has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends AST SpaceMobile and Rocket Lab. The Motley Fool has a disclosure policy.
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