SpaceX IPO is days away: Here are 3 reasons to buy and 2 reasons to wait

SpaceX is days away from its June 12 initial public offering (IPO), and it remains to be seen if the company’s stock will soar to the moon or plummet to the ground. Predicting the outcome is a virtually impossible task for even the savviest investors. With all the hype surrounding SpaceX’s IPO, it helps to know the main arguments for buying now or waiting to happens to the company’s stock price. “Just because SpaceX is a great company doesn't necessarily mean it's going to be a great investment,” said Evan Mills, an associate financial advisor at Scholar Advising. The space and tech company, owned , was valued at $1.55 trillion Monday, making it the most expensive stock debut in American history. Its ticker symbol will be SPCX. open image in gallery SpaceX’s IPO will be the most expensive in history (AFP via ) Three reasons to buy SpaceX shares SpaceX has established itself as a fast-growing company that’s had success in space travel and its satellite internet business, Starlink. So, investors aren’t buying stock based on unrealized potential – there are real results you can point to. Those results are a main reason it might make sense to buy SpaceX stock, Mills said. “SpaceX is not just selling a dream – it's truly a successful company right now with enormous exposure to long-term markets,” Mills said. “They're dominant in launch capacity, they have Starlink giving them defensive communications and commercial space exposure, so there's a real business here that's already generating revenue.” Another argument for a SpaceX IPO purchase is that the company owns several businesses with growth potential, said Michael Monaghan, portfolio manager at Founder ETFs. So, buying shares of SpaceX is like buying “three businesses, each capable of standing alone as a Fortune 500 company, all under one founder,” Monaghan told The Independent in an email. Founder ETFs believes that SpaceX’s satellite internet subsidiary Starlink and its national security firm Starshield can each get to $50 billion in annual revenue by 2030. The company’s AI division has the potential to reach $100 billion in annual revenue by 2030. SpaceX’s AI business is part of why Mills says a SpaceX stock purchase could make sense. “You're not just betting on space travel, you're also looking at a serious AI infrastructure play right here on Earth,” he said. Two reasons to wait SpaceX has a long list of projects it wants to complete, including building and deploying 59,000 AI-processing satellites and building rockets that can be reused at least 80 percent of the time.