We’re taking a quick break from our ongoing “State of Small-Cap Defense Investing” series today to see how SpaceX’s prospectus frames long-term upside for the emerging space economy. Look for the next part in the defense series to drop later this week.
The SpaceX IPO will (probably) price tomorrow after market close with trading kicking off on Friday, June 12, in what promises to be nothing less than a historical day for the stock exchange.
Despite the back-and-forth over indexing $SPCX ( ▼ 2.68% ) (SpaceX’s future ticker) in the S&P 500 and its impact on passive funds, the listing is being reported as massively oversubscribed with as much as $250B in demand compared to Elon’s planned $75B raise.
That may be a good thing (in a “save you from yourself” kind of way), considering mega-cap IPOs tend to tank post-offering, compounded by a staggered insider lockup with the first tranche releasing within weeks of the big day.
For either investor class – those looking to get a piece of the action and those running away as fast as possible – there’s still a chance to snag some long-term SpaceX upside with key small-cap space stocks.
Just look at the company’s prospectus for proof.
In the lengthy doc, SpaceX names its long-tail bets and how it sees the space sector developing:
Orbital AI compute (targeted “as early as 2028”) and in-orbit manufacturing
An emergent lunar economy that includes passenger/cargo transport, independent energy production, and manufacturing capabilities as planned moon bases land and expand, writing the playbook and setting conditions for Mars colonization
Space tourism, asteroid mining, point-to-point Earth travel, and more.
Connected to these long-term strategic goals are the technical capabilities the company says it has already “solved,” including inter-satellite lasers, mesh connectivity, and satellite mass production at scale.
In other words, the SpaceX prospectus is a roadmap for where SpaceX’s team of experts sees the space economy developing over the next few decades.
And these small-cap space stocks align perfectly with their thesis.