Don't Wait for the SpaceX IPO: Buy These 2 Hypergrowth Space Stocks Instead

The world may finally get a SpaceX IPO, and investors could not be more excited. In what could be the largest public funding round in history, SpaceX is expected to debut later this year at a market cap of $1.5 trillion-$1.75 trillion, which would put it in the top 10 most valuable companies in the world.

Any investor looking to buy SpaceX stock may run into a few issues, though. First, you are buying when private shareholders have already made billions in gains, with any upside likely capped by a starting market cap over $1 trillion. Second, SpaceX recently merged with xAI -- yes, Elon Musk likes the letter X -- to bring social media company X, its AI start-up, and the space flight giant under one corporate umbrella.

This could be a problem if you want direct exposure to the space economy as an investor, as well as the risk of managing the two struggling companies that are now under the SpaceX umbrella. Instead, investors should hunt for pure-play space stocks with lower market caps.

Image source: Getty Images.

Luckily, there are two stocks that fit this bill and can be added to investors' portfolios right now.

1. Rocket Lab's comprehensive offerings

First up: Rocket Lab (NASDAQ: RKLB). This company is one of SpaceX's true direct competitors, launching 21 rockets for commercial and government customers in 2025 alone. It currently operates a small rocket called the Electron, targeting customers who only need to deliver smaller payloads to orbit.

In addition to rocket launches, Rocket Lab also designs space systems for potential customers, including satellites and solar arrays. Solar arrays specifically could play a nice role in the space-based data centers growth market.

Rocket Lab's revenue has soared in recent years, rising to $602 million in 2025 from $62.2 million in 2021. It should continue to grow from the Electron and Space Systems segments, but is moving into other areas that could enable a step-change in growth opportunities.

This includes a new rocket called the Neutron, which will be much larger than the Electron and will compete more directly with SpaceX for launch contracts. It is taking a lot of up-front spending to develop, but it is slated to hopefully make its commercial debut in 2026. Next up is Rocket Lab building its own constellation of satellites to sell services to customers, similar to SpaceX's Starlink internet (although it doesn't have to just sell internet services).

2. Planet Labs' focus on surveillance

The second company, which is even more underfollowed than Rocket Lab, is Planet Labs (NYSE: PL). This company has built a constellation of satellites not to sell internet services, but to take continuous photos of the Earth from orbit.

Consistently building increasingly advanced capabilities -- along with using artificial intelligence (AI) for scanning -- has helped Planet Labs secure contracts for its imaging services. Last quarter, its revenue grew 33% year over year to $81 million, and it reported healthy free cash flow.

Customers worldwide are using Planet Labs, including for military applications in the United States. The company has signed deals with NASA, the United States Navy, and the United Nations, all of which have massive budgets and could benefit from Planet Lab's global monitoring capabilities.

The future looks bright for the business, with its backlog up 216% year over year last quarter to $734 million. Expect continued revenue growth for Planet Labs in the years ahead as it secures more of these long-term contracts.

These are all exciting businesses, but they do trade at considerable valuations. SpaceX would have a price-to-sales ratio (P/S) of about 100 if it goes public at its rumored price, though adding xAI revenue may lower it a bit. Rocket Lab trades at a P/S ratio of 61, and Planet Labs at 26.5.

What could make Rocket Lab and Planet Labs better investments than SpaceX is their market caps. Rocket Lab has a market cap below $40 billion, and Planet Labs has a market cap below $10 billion. It doesn't make them risk-free investments, but they have a lot more upside than a stock like SpaceX if it comes out at a $1.5 trillion price at its IPO.

Brett Schafer has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Planet Labs PBC and Rocket Lab. The Motley Fool has a disclosure policy.