3 Ways to Think About SpaceX Before Its IPO
Highlights
- SpaceX plans to sell 555.6 million shares to raise $75B during the June 12 IPO.
- Starlink is standing out as the core revenue-generating segment of the company.
- xAI is also expected to justify the $1.75 trillion valuation as Goldman Sachs forecasts a 100x revenue growth for the segment.
SpaceX submitted a confidential filing for an IPO on April 1, 2026, before making this filing public on May 20, 2026. SpaceX is one of the three highly anticipated IPOs that are set to happen this year, alongside OpenAI and Anthropic, and the company is planning to raise $75 billion at a valuation of $1.75 trillion.
Top names on Wall Street: Goldman Sachs, Morgan Stanley, and JPMorgan are underwriters for this IPO that will go live on June 12, but that does not mean that it is void of criticism, because Morningstar warns that SpaceX might be overvalued, saying its valuation should not be more than $780 billion.
Still, interest in SpaceX remains high, and the IPO is even catching the blame for draining capital from crypto. Coinbase, Binance, and Hyperliquid have pre-IPOs for this stock, and as interest peaks, here are three ways an investor should think about SpaceX before June 12.
SpaceX Launches Rockets, but Starlink Pays the Bills
VC firm Theory Ventures says that Starlink is “SpaceX’s largest business and profitable,” and the numbers that appeared on the S-1 IPO filing confirm this.
In 2025, Starlink had a revenue of $11.4 billion, and this was 61% of the total revenues that SpaceX reported that year.
SpaceX also disclosed its Q1 2026 results, and they show that all three main segments of the company: Starlink, space, and xAI, generated revenue, but it was only Starlink that made a profit.
Starlink had a revenue of $3.26 billion in that quarter, and the profit came to $1.19 billion. The space business made a loss that was not disclosed, while xAI spent $2.47 billion more than it generated in revenue.
The Starlink business is so big that Ark Invest analyst Brett Winton says that it can single-handedly justify the valuation of $1.75 trillion.
US telecom company AT&T is already feeling the heat of Starlink’s growth as Wall Street downgrades its stock, citing the competition that is coming from Starlink.
Therefore, before the SpaceX IPO arrives on June 12, one should think about how much Starlink is going to shape earnings post the IPO.
SpaceX is Multiple Companies in One
The second thing to think about SpaceX before the IPO happens on June 12 is that it does not fit a single box of either telecom, technology, or defense stock, with investment research firm Morningstar calling it a “vertically integrated conglomerate.”
The current makeup of Wall Street is that every company has one thing that they bring to the table. When you buy Nvidia, you are investing in AI, when you buy Palantir, you are investing in defence, and when you buy Coinbase, you are investing in crypto.
But with SpaceX, this blanket rule does not apply because SpaceX has defense contracts, it has its toes in telecommunication through Starlink, it is dealing with satellites, it is a space company, and it is also an AI company through xAI, which is why the IPO is drawing interest to other stocks.
VC firm Theory Ventures describes this as SpaceX running “three businesses with fundamentally different economics.”
Therefore, before this IPO happens, an investor has to think of what part of the business they are most drawn to before they can buy the SpaceX shares.
SpaceX is Like an AI Stock
One should also think of SpaceX as an AI stock because of xAI that Goldman Sachs expects will reach a revenue of $322 billion by 2030.
The investment bank gave this forecast on June 4 and said that XAI is going to see a 100 times increase in revenue in the next four years. It expects the total revenue coming from SpaceX to reach $474 billion by 2030.
xAI contributing $322 billion to a total revenue of $474 billion means that Goldman Sachs believes it will be the segment that justifies why SpaceX has a valuation of $1.75.
Strategy CEO noted that AI stocks have already seen $400 billion in inflows for the last six months, and this will likely increase with the IPOs of SpaceX, Anthropic, and OpenAI, but SpaceX already has a first-mover advantage.
Final Thoughts
SpaceX is going to float 555.6 million shares on June 12 at $135. Even with the valuation of $1.75 trillion facing contention from analysts who are saying that it is too high, SpaceX’s unique business model, Starlink’s profitability, and the 100 times growth that Goldman Sachs expects from xAI are drawing interest from retail and institutions. Starlink will break the record of raising the most money from an IPO if it sells all the 555.6 million shares and raises $75 billion.
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Frequently Asked Questions (FAQs)
1. Can I buy SpaceX shares before the IPO?
2. Will SpaceX shares rally after IPO?
3. How many shares will SpaceX sell during the IPO?
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