SpaceX is anticipated to pursue a very large IPO later in the year, with a potential valuation around $1.5 trillion or higher, driven by its Starlink expansion and the need to fund satellite launches and AI-driven data center ambitions.

SpaceX’s Starlink-enabled growth and capacity expansion underpin the rationale for raising substantial IPO capital, as the company aims to broaden satellite internet and related infrastructure.

2025 revenue was reported a little over $15 billion, with Starlink driving growth, and the IPO plan is expected to raise tens of billions to support satellite launches and potential space-based AI continuity infrastructure.

However, owning SpaceX before the IPO is a risky bet and may not be suitable for all investors, despite the exposure opportunity.

Risks of pre-IPO exposure include high valuation, potential liabilities from X (formerly Twitter) and xAI, and very high price-to-sales and price-to-earnings ratios under optimistic growth scenarios.

Current context notes significant debt and equity considerations for EchoStar, highlighting the overall complexity of valuing SpaceX pre-IPO.

A $1.5 trillion valuation on $15 billion in revenue implies a price-to-sales ratio around 100, making SpaceX one of the most expensive large-cap valuations in history; investors should weigh the prudence of such a lofty multiple.

Despite strong revenue and expansion plans, the article cautions against chasing the IPO and suggests waiting for a potentially better buying opportunity as SpaceX scales and improves profitability.

Retail investors can gain pre-IPO exposure indirectly through EchoStar, which holds a significant SpaceX stake and is involved in a $19.5 billion deal featuring SpaceX stock and cash.

EchoStar offers the most direct pre-IPO exposure for retail investors due to its large SpaceX stake and ongoing business relationship, including spectrum sales to SpaceX.