SpaceX IPO Ignites Space Stocks, Which Stock Is Most Worth Investing In?

TradingKey - For SpaceX, it is no longer a question of "whether to go public," but rather that it has entered a substantive phase of advancement.

A recent Reuters report states that the company has confidentially filed for a U.S. IPO, with a potential valuation target exceeding $1.75 trillion. Prior to the offering, it is coordinating with 21 banks for underwriting, and rumors suggest up to 30% of the shares may be reserved for retail investors. The market has pegged the listing window to around June of this year.

Following SpaceX's formal submission of confidential IPO documents, the aerospace and aviation sector strengthened significantly on Wednesday, Rocket Lab , Planet Labs , Intuitive Machines , Howmet Aerospace and other stocks surged in tandem, while related space-themed ETFs also became active.

The market's interpretation is straightforward: once SpaceX goes public, it won't just be about one company raising capital; it will elevate the valuation of the entire "space economy" to a new level.

Why is SpaceX so valuable? The core lies in Starlink.

The reason SpaceX can stir such strong market sentiment is not because of its ability to "launch rockets," but because it has transformed itself into a more comprehensive platform.

Rocket launches are merely the entry point; the true core value is Starlink and the complete commercial closed-loop ecosystem built around it. Starlink is the primary cash flow engine, serving over 9 million global users. Combined with support from government and defense contracts, the company now possesses significant cash flow potential.

More importantly, the market now views SpaceX as part of the future "Space + AI" infrastructure. It doesn't just put satellites into orbit; it is effectively paving the way for the next stage of space communications, space-based computing, and long-range data transmission.

Because of this, the market's perception of the company has shifted from a "high-risk aerospace firm" to a "next-generation infrastructure platform." Once public, this positioning will ensure its valuation is no longer confined to the framework of traditional aerospace stocks, but rather closer to the valuation methods used for tech platform companies.

Why will the entire aerospace and aviation sector be lifted?

The reason SpaceX's IPO will lift the entire sector is essentially because the capital market fears "uncertainty" most of all. In the past, many investors had fragmented perceptions of the space industry, viewing it as either too expensive, too slow, or too far from commercialization. However, once SpaceX enters the public market, it effectively brings the "commercial space industry" to the forefront, providing the market with a model that already has scale and cash flow.

This will directly lead to two changes. First, attention on the entire sector will increase, and names that were previously overlooked will be re-examined. Second, the valuation framework will be elevated as the market becomes willing to apply a higher growth premium to the space economy.

Therefore, from a market perspective, high-growth companies like Rocket Lab, Planet Labs, and Intuitive Machines will benefit first. Meanwhile, supply chain and aerospace manufacturing firms like Howmet Aerospace will also attract capital as industry sentiment improves.

Simply put, SpaceX is not just making itself valuable; it is also driving the entire industry chain into a higher pricing range.

Which companies collaborate with SpaceX?

From the perspective of having "direct business relationships with SpaceX," Planet Labs and Intuitive Machines are the most closely linked.

Data shows that Planet Labs' Pelican-3 and Pelican-4 satellites were launched into orbit via SpaceX's Falcon 9, meaning its connection to SpaceX is based on actual cooperation rather than just thematic correlation.

Intuitive Machines is similar; its lunar missions and NASA-related payload launches are also dependent on SpaceX's launch platforms. Furthermore, it recently secured a $180 million contract from NASA to deliver seven scientific and technological payloads to the lunar South Pole.

For the market, such companies are most likely to be regarded as "direct beneficiaries" as SpaceX IPO expectations heat up, given their both operational ties and greater thematic elasticity.

Which is more worth investing in?

From an investability standpoint, Howmet Aerospace is likely the most stable among the four companies. While it isn't the "purest" SpaceX concept stock, its fundamentals in commercial aviation and defense are more robust, with better profitability and cash flow.

Howmet Aerospace's latest financial report showed a 14.65% year-over-year increase in fourth-quarter revenue and raised its growth forecast for 2026. With a current P/E ratio of approximately 62x, its profitability and cash flow are more stable than many space-themed stocks.

The logic behind it is that "as the entire aerospace industry recovers, it can more steadily realize profits." If relative certainty is desired, Howmet offers more value than pure thematic stocks.

Planet Labs and Intuitive Machines are more like thematic high-beta plays. The former has stronger contract revenue and order backlogs, while the latter benefits from the lunar economy and NASA partnerships. However, their commonality is that their EPS remains negative, and their stock prices are more sensitive to news. This means they are better suited for event-driven or high-volatility trading rather than as stable core holdings.

Rocket Lab sits in a different position. It is more of a growth stock purely betting on the long-term expansion of commercial space. It has the most complete industry narrative and significant upside potential, but also carries higher volatility and requires a longer time for earnings validation. Its appeal lies in its "massive potential future," while the drawback is its "lack of current stability."

Investment Recommendations

The core aspect of this SpaceX IPO is the valuation re-rating of the entire aerospace and aviation sector. Capital will first chase the companies that benefit most directly, before spreading to the supply chain, launch services, satellite communications, and the broader aerospace sector.

Among them, the impact is most direct for Planet Labs and Intuitive Machines; the most attractive risk-reward profile belongs to Howmet Aerospace; and Rocket Lab is the best choice for betting on the long-term expansion of the space economy.