As a potential SpaceX IPO is shaking up the space investment landscape. Two stocks, EchoStar (SATS) and Rocket Lab (RKLB), stand out as compelling ways to ride that wave.
SpaceX's IPO Could Change Everything
SpaceX may be preparing to file its IPO prospectus within weeks, according to The Information. Advisors close to the process say the company could seek to raise more than $75 billion, which would rank among the largest public offerings in history. SpaceX, currently valued at approximately $1.25 trillion following its merger with Elon Musk's xAI, could target a valuation of $1.75 trillion at the time of its listing, according to the report.
Space-related stocks are already trading higher on reports of SpaceX's IPO plans. EchoStar jumped roughly 8% in a single session. The momentum reflects what investors already sense: a SpaceX listing could be a rising tide for the entire space industry.
EchoStar: A Direct Path to SpaceX Equity
EchoStar has quietly become one of the most direct ways for public market investors to access SpaceX. According to a Morningstar report, EchoStar agreed last year to sell approximately $20 billion in wireless spectrum to SpaceX in exchange for up to $11 billion in SpaceX Class A common stock. That deal is expected to close in late 2027.
EchoStar CEO Charles Ergen made his enthusiasm clear on the company's Q4 2025 earnings call. He described SpaceX as the best company he had worked with in 45 years, calling their team responsive and creative and moving at a pace most companies can't match. "I don't think any amount of valuation is probably crazy there," Ergen said.
EchoStar does face near-term headwinds. Its DISH Wireless business is working through tower lease litigation following a network decommissioning. Ergen acknowledged the business is close to EBITDA breakeven but not there yet. Resolution of those disputes and the eventual closing of the spectrum deal are the key catalysts to watch.
Out of the eight analysts covering SATS stock, three recommend “Strong Buy,” one recommends “Moderate Buy,” and four recommend “Hold.” The average EchoStar stock price target is $120.50, marginally above the current price of about $114.
Rocket Lab: Building the Infrastructure for Space's Future
Rocket Lab posted record annual revenue of $602 million in 2025, up 38% year-over-year (YoY). Its backlog hit $1.85 billion at year-end, a 73% jump from the same point in 2024. Much of that came from an $816 million Space Development Agency contract to build 18 advanced spacecraft for missile warning and tracking. Combined with a prior SDA award, Rocket Lab now holds more than $1.3 billion in contracts with that agency alone.
- RKLB is also making progress on Neutron, its larger reusable rocket.
- A tank failure during testing pushed the first launch to Q4 2026, but management said the new production process eliminates the defect that caused the rupture.
- More key hardware is now in final qualification and integration, and CEO Peter Beck said the company would bring "a robust and thoroughly tested vehicle" to the pad.
Beyond launch, Rocket Lab is expanding aggressively into space systems. It recently acquired optical systems firm Optical Support, Inc., and machining company Precision Components Limited, deepening its vertical integration across payloads, optics, and manufacturing. Gross margins reached 38% GAAP and 44% non-GAAP in Q4, both company records.
Out of the 16 analysts covering RKLB stock, nine recommend “Strong Buy,” one recommends “Moderate Buy,” and six recommend “Hold.” The average Rocket Lab stock price target is $90.50, above the current price of about $61.
The Final Takeaway
EchoStar offers a relatively direct exposure to SpaceX equity. Comparatively, Rocket Lab offers a more diversified bet on the full space supply chain: launch, satellites, components, and defense. For investors looking ahead to what a SpaceX IPO could mean for the sector, both deserve a closer look.
On the date of publication, Aditya Raghunath did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
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