The SpaceX initial public offering (IPO) draws closer as the company reportedly filed a confidential S-1 draft with the United States Securities and Exchange Commission (SEC) on April 1, 2026, according to Reuters. Valuation estimates range from $1.5 trillion to $2 trillion, as the Company is poised to raise to $75 billion in proceeds.

A Vertically Integrated Space Transport and Communications Provider

SpaceX is a space transportation company that provides launch services, transporting medium- to heavy-payloads into space, ranging from satellites and equipment to astronauts. Their reusable rockets, including Falcon 9, Falcon Heavy and the impending Starship, are like rideshare buses that can bundle dozens of smaller satellite passengers on each scheduled trip. They account for up to 90% of all global space launches.

The Company also owns and operates Starlink, a massive constellation of thousands of low-Earth-orbit (LEO) satellites that provide high-speed internet and telecommunications services globally. The Company is estimated to have generated nearly $16 billion in 2025 with a 50% operating margin, growing at a 50% year-over-year (YoY) clip.

Alternative Stocks to Gain From SpaceX IPO

The hype surrounding the lucrative IPO continues to build, with analysts expecting it to launch in May or June this year. Investors can expect very exorbitant prices on IPO day. They should refrain from being bitten by the FOMO (fear of missing out) bug and from chasing entries despite the deal's oversubscription. Instead, here are 3 sympathy stocks to consider ahead of the IPO.

Rocket Lab Co. (NASDAQ: RKLB) is a direct competitor to SpaceX on a much smaller scale. They specialize in small- to medium-sized payloads transported by their Electron rocket. Customers can take more "direct flights" to their individual destinations, like a taxi service rather than a mass transit bus, as SpaceX does. Rocket Lab also designs and manufactures satellite buses and components. Rocket Lab can design, build and launch satellites according to customer specifications. The Company's medium payload Neutron rocket will be a direct challenge to SpaceX's Falcon 9 and is targeted to launch in Q4 2026. The Company generated revenue of $602 million in 2025, up 38% YoY, with a backlog of $1.85 billion.
Intuitive Machines Inc. (NASDAQ: LUNR) provides end-to-end lunar services and operates as a space infrastructure company. They focus on deep space and on providing a lunar delivery service, including landers that transport commercial payloads, such as scientific tools and equipment. In 2024, Intuitive Machines was the first commercial company to land successfully on the moon. They are not direct competitors but are actually customers of SpaceX, as their Falcon 9 lifts and launches Intuitive Machines' Nova-C lander towards the moon. While the Company reported a (7.9%) YoY revenue drop for full year 2025 of $207.13 million, they expect 2026 revenues to surge five-fold to $900 million to $1 billion with positive adjusted EBITDA.

Avoid the FOMO on IPO Day

The hype train will be in full force heading into the SpaceX IPO. It's prudent to avoid jumping into a crowded trade. One can expect valuations to skyrocket into the IPO, but reality may strike after the IPO begins trading as stocks fall back down to earth. Be aware of a potential "sell the news" event reaction and consider derisking position size ahead of the IPO launch into NASDAQ market upswings.

Written by: Jea Yu, Analyst, Sigmanomics.com

With over 25 years of investing, analysis and trading experience in the equities and options market, Jea brings layered insights into how markets and trends operate. Jea is a four time published author with finance books focused on trading and risk management published by McGraw-Hill, John Wiley & Sons and Bloomberg Press. Jea has written over 2,500 articles across various digital platforms spotlighting and highlighting stocks, trends and trading strategies.

2 Alternative Space Stocks to Consider Ahead of the SpaceX IPO