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SpaceX has spent over two decades as a private company and is hurtling towards what is expected to be the largest IPO in history. Space stocks like EchoStar (NASDAQ:SATS), Rocket Lab (NASDAQ:RKLB | RKLB Price Prediction), and Planet Labs (NYSE:PL) could pop quickly after SpaceX goes public and re-defines the valuations across the whole industry.
Not only is SpaceX a space company, but it is also an AI company now after it acquired xAI. The market will have the purest exposure to a major Western AI company. The only dilution factor is SpaceX’s traditional space business, which is better than holding a massive software business like Alphabet (NASDAQ:GOOG, NASDAQ:GOOGL). I expect SpaceX to become the go-to AI play and the hottest tech stock. It will perhaps even outdo Palantir (NASDAQ:PLTR) in terms of valuations.
This will most certainly lift other space tech stocks as the premium being paid for these space companies will collectively go vertical the moment SpaceX goes live. There’s explosive commercial demand from private companies and from the government due to programs like the Golden Dome project.
The company reportedly plans to submit a confidential IPO filing with the SEC as early as this month. It’s a good idea to have good exposure to space stocks beforehand.
EchoStar (SATS)
EchoStar is one of the most unconventional dealmakers in American telecommunications. What was a satellite TV business eventually built DISH Network into a major pay-TV competitor to DirecTV, though the company today is vastly different and the product of several layers of mergers and acquisitions.
EchoStar today has changed course and orchestrated a spectrum sale to SpaceX. This sale gave it $8.5 billion in cash and $11 billion in SpaceX equity, and that $11 billion is why I believe it is the go-to stock if you want to benefit from SpaceX’s IPO, as EchoStar already has exposure to it.
SATS stock has soared 307% in the past year, partly because of this SpaceX stake. It holds nearly 3% of SpaceX. The IPO could see SpaceX’s valuation at $1.75 trillion, and likely over $2 trillion in the following months if all goes to plan.
That means EchoStar’s stake could be ~$50 billion in the future. SATS has a market cap of $32.4 billion right now, which includes both the business itself and its SpaceX stake.
Rocket Lab (RKLB)
Rocket Lab is the premier competitor to SpaceX, and it is already public. The company’s Electron rocket is the most frequently launched small orbital rocket, with 81 successful launches. It is making other rockets that directly compete with SpaceX in a way no other company can.
Revenue has grown by almost 36% annually on average over the past three years, with the next few years expected to bring an acceleration in growth. Rocket Lab is still loss-making but has narrowed down its losses considerably. EBITDA losses went from $47 million in Q3 2025 to just a $6 million loss in Q4 2025.
Cash on the balance sheet rose over $1 billion, with debt being halved from $517 million to $254 million, all in just one quarter. Analysts expect profits to start pouring in starting next year, with annual growth rates as high as 50%. I expect Rocket Lab to be the second most profitable space company after SpaceX. That status will warrant a very high premium.
RKLB stock is up 226% in the past year alone. However, the fast-moving space industry plus a SpaceX IPO leaves room for more multibagger gains ahead. I see the stock above $100 as the SpaceX IPO edges closer.
Planet Labs (PL)
Planet Labs has carved out its own niche in the space industry. The niche is in satellites that constantly photograph the Earth. The imagery is used for both military and commercial purposes, and the demand is rising quickly, and so are the margins, as the same satellites serve more and more customers.
Planet Labs has miniature satellites called Doves, which are roughly the size of a shoebox, each costing around $200,000 and lasting 3-5 years. It runs a subscription-based SaaS model, so customers pay recurring annual fees for access to Planet’s continuously updated imagery archive. This is why the company has a 36.3% net margin despite being a startup. This margin is better than 96.4% of companies, even in the software industry. Most of the space startups are deeply loss-making, so Planet Labs is truly unique.
All this profitability has allowed the company to rack up $7.2 billion in cash with just $229 million of debt. Revenue increased 26.6% in the most recent quarter, with $900 million of backlog. Planet Labs has now turned into a fan-favorite for the defense intelligence sector, and that’s mainly where the growth is coming from.
I see PL stock soaring a lot higher as satellites become even more integral to the military. Revenue and EPS growth are expected to touch 50% annually.