Tired of the SpaceX IPO Hype? Here Are 3 Space Economy Stocks to Buy Instead.

If you're like me, by now you're a bit tired of the massive hype surrounding this week's SpaceX initial public offering (IPO). Yes, when it goes public, the company -- officially, Space Exploration Technologies Corp. -- will make history, raising some $75 billion and likely achieving a market capitalization of $1.8 trillion, which is enormous.

Yet if you look at the history of IPOs, you might be a bit cautious about investing in SpaceX right away. IPOs don't always succeed, and even if they do, the days and weeks immediately after the IPO tend to present a very poor entry point. One research report by Truist examined 30 major tech IPOs over recent years and found that all experienced a significant drawdown in their first year of trading.

Plus, the SpaceX IPO is two times oversubscribed, so it could be difficult to purchase shares unless you're willing to outbid others once they begin trading. A better strategy is to wait for the almost inevitable dip in the price of the new shares and buy when the valuation makes sense.

Image source: Getty Images.

There are many space companies already trading publicly

Until then, there are plenty of other space-economy stocks you should consider. And these stocks may even get a boost from SpaceX's IPO and the market enthusiasm it generates for space-related stocks. Here are a few:

Rocket Lab (NASDAQ: RKLB) is a launch provider that started out small but has expanded rapidly in recent years and now operates across different segments of the space economy, including launch and control systems for the space and defense industries, spacecraft design, engineering, and manufacturing.

The company has a market cap of about $66 billion. Revenue increased 38% last year to $602 million. Earnings are projected to grow 56% this year. The stock is up about 50% so far in 2026.

Planet Labs (NYSE: PL) operates a constellation of satellites that capture images of Earth's surface for customers ranging from governments to farmers, who need the information on a regular basis. With a market cap of about $10.5 billion, it's a bit smaller than some other space companies, but the stock price increased eightfold over the past year, only to decline slightly after the company posted good first-quarter results when the market had expected extraordinary ones. This is a good stock to buy on that dip.

L3Harris (NYSE: LHX) manufactures the engines needed to propel big objects into space. It expanded its space business in 2023 by acquiring Aerojet Rocketdyne. The stock is up 24% over the past year, but it sold off after Q1 results were announced earlier this year. Revenue and profit growth for the quarter were strong, but earnings guidance was considered disappointing. Still, this is a well-positioned company in a growing sector.

The space economy is forecast to expand rapidly

McKinsey estimates the space economy will rise from about $630 billion in 2023 to $1.8 trillion by 2035.

And there's another way to invest in that economy: the Ark Space Exploration & Innovation ETF (NYSEMKT: ARKX), which is managed by Cathie Wood's Ark Invest. For those unfamiliar, Ark's exchange-traded funds (ETFs) are actively managed, focus on multidecade technological shifts (Ark calls them innovation platforms), and have a five-year investment horizon.

The ARKX ETF seeks to invest at least 80% of its funds in space and defense innovation stocks. It has about $893 million in net assets and is up about 12% this year and 46% over the past 52 weeks. With at least 35 different stocks, the fund is highly diversified, so investors can capture a broad swath of space and defense stocks with a single investment.

The space economy seems to have enormous potential, as evidenced by the enthusiasm for the SpaceX IPO due later this week. If you want to have a stake in it, there are many ways to do so.

Matthew Benjamin has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends L3Harris Technologies, Planet Labs PBC, and Rocket Lab. The Motley Fool has a disclosure policy.