SpaceX’s IPO Could Be a ‘Netscape Moment’ for the Space Economy

SpaceX’s IPO could become the largest public offering ever, as the aerospace firm targets a valuation of $2 trillion. Following the news, shares of Rocket Lab RKLB +0.59% ▲ , Planet Labs PL -2.59% ▼ , and AST SpaceMobile ASTS +4.08% ▲ all jumped sharply. Interestingly, this market reaction suggests that a SpaceX listing could benefit not just the company itself but the entire industry by changing how investors view space-related businesses. In fact, some analysts believe this moment could be similar to the early days of the internet.

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Speaking to Yahoo Finance, Chad Anderson, the CEO of Space Capital, compared the potential SpaceX IPO to Netscape’s 1995 listing, which helped turn the internet into a serious investment category. In the same way, a public SpaceX could give institutional investors a clear benchmark for valuing the space economy. As a result, this could attract more capital and change the perception of space from a niche, high-risk area to a more established and important part of the global economy.

Many experts also believe that this could lead to a “re-rating” of the entire space sector, which would result in higher valuations and more investments. Glen Anderson of Rainmaker Securities noted that space is increasingly being seen as critical infrastructure that covers areas like communications, defense, and data. In addition, the IPO could encourage more private space companies to go public, as they look to follow SpaceX and take advantage of renewed investor interest in the sector.

Which Space Stock Is the Better Buy?

Turning to Wall Street, out of the three stocks mentioned above, analysts think that RKLB stock has the most room to run. In fact, RKLB’s average price target of $86.92 per share implies 28.1% upside potential.

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