SpaceX IPO fuels retail frenzy in space stocks and ETFs
The IPO, led by Goldman Sachs, allocates 30% of the float to retail investors and aims to raise funds for increased Starship flights, AI orbital data centres, and lunar base preparations, despite the company reporting a $4.28 billion net loss in the first quarter of 2026.
Retail investors are aggressively purchasing space-themed stocks and exchange-traded funds ahead of the anticipated initial public offering of SpaceX. According to data from Vanda Research, net buying across space-themed ETFs is at its strongest pace since 2021. The Procure Space ETF, trading under the ticker UFO, saw record retail net buying of $6.2 million on April 30, with current levels standing at $3.8 million, which is roughly three times stronger than prior peaks.
SpaceX is targeting a pricing date of June 11 and a listing on the Nasdaq on June 12, with an estimated valuation of $1.75 trillion. Goldman Sachs is leading the IPO, with 21 other banks involved. The company has earmarked 30% of the float for retail investors, a figure significantly higher than the standard 5–10% allocation typically seen in such deals. Proceeds from the IPO are reportedly intended to fund increased Starship flight rates, AI-powered orbital data centres, and groundwork for a permanent lunar base.
Interest is also broadening to smaller, more speculative space names, including Sidus Space, Satellogic, and Planet Labs. Redwire has attracted $41.1 million in retail net buying over the last 20 trading days, emerging as a favourite among retail investors. The company provides satellite infrastructure and spacecraft components, positioning it as a key beneficiary of the sector's growth.
SpaceX reported total revenue of $18.7 billion for 2025, representing a 33% year-on-year increase. The Starlink satellite service accounted for $11.4 billion of that revenue, or 61% of the total. However, the company posted a GAAP net loss of $4.28 billion in the first quarter of 2026 and carries an accumulated deficit of $41.3 billion.
Lee Munson, chief investment officer at Portfolio Wealth Advisors, advised caution, suggesting investors wait for a potential price pop on day one before buying at a lower valuation. Munson noted that the IPO appears to be driven more by euphoria than strong institutional ownership, highlighting the unusual retail allocation as a potential indicator of sentiment over fundamentals.
