SpaceX SPCX, which made a historic Wall Street debut on June 12, 2026, has just ended its first full week as a public company on a sour note, with shares down about 13%.
The stock is now hovering around the $150 level at which it began trading. This triggered speculation that the SpaceX stock walk on the trajectory of several high-profile listings that eventually fall below their offer prices.
Massive Bond Deal Raises Fresh Questions
Adding to the debate, SpaceX last week priced a $25 billion bond offering that attracted nearly $90 billion in investor demand, as quoted on Yahoo Finance. While such overwhelming interest typically signals strong confidence, some investors are questioning why a company that recently raised enormous sums through its IPO would need to tap debt markets so quickly for billions more.
Wall Street Debates Bubble Risks
The bearish argument is that the company is garnering as much capital as possible, as long as the winning trend in the space and AI arena is its friend. After all, bubble fears in the AI space are far from over.
Any Bright Factors in the Stock?
Ambitious Growth Plans Ahead
Ahead of the IPO, Musk said SpaceX had been cash-flow positive since around 2015 and was entering a major growth phase, per a CNBC article. The company plans to deploy more than 100,000 satellites, expand its communications network, and build artificial intelligence data centers in space.
SpaceX's profitable engine remains its Starlink satellite internet business, although the company has expanded significantly through acquisitions, including Musk's AI venture xAI and social media platform X.
Also, just days after its record-breaking Nasdaq debut, SpaceX announced that it has entered into a definitive agreement to acquire AI startup Cursor in an all-stock transaction valued at $60 billion. The transaction is expected to close in the third quarter of 2026, subject to regulatory approvals.
Space-Based Data Centers Gain Attention
Blue Origin founder Jeff Bezos recently told CNBC that space-based data centers are technologically feasible, though commercial deployment may take longer than many investors expect (read: Space ETFs Skyrocket in May: Can the Rally Last?).
Meanwhile, Alphabet is reportedly developing a space-data-center initiative known internally as “Suncatcher,” with test launches expected in 2027. Google is also said to be discussing a rocket launch partnership with SpaceX, according to the WSJ. The satellites will be equipped with Google's custom proprietary AI chips, Tensor Processing Units, to process AI workloads directly in orbit.
Why Investors Are Turning Bullish on Space
The economics of the space industry have improved dramatically over the past two decades. Launch costs have dropped roughly 90%, largely due to reusable rocket technology pioneered by SpaceX.
The global space economy reached $613 billion in 2024, according to Space Foundation, as quoted on Saxo. According to McKinsey, the global space economy could expand to $1.8 trillion by 2035 from $630 billion in 2023.
Government spending is also acting as a major catalyst, as countries increasingly treat space infrastructure as strategically important for both defense and commercial purposes.
Solid Hiring in the Space Economy
Recent government data showed that the rate of job growth within the space economy has topped the broader labor market. The space economy is growing globally, at an annual rate of 9%, according to the World Economic Forum, as quoted on CNBC.
Space-sector employment grew by 27% in the decade through 2024, far outdoing total private-sector employment growth at 14%, per the same CNBC article.
SpaceX Set for Rapid Entry Into Nasdaq-100
SpaceX is poised to become one of the fastest additions ever to the Nasdaq-100 index, triggering a new wave of demand from passive investors. If all requirements continue to be met, index funds and other investment products tracking the Nasdaq-100 will begin purchasing shares after the market closes on July 6, with the stock officially joining the index before trading opens on July 7, as quoted on CNBC.
ETFs in Focus
As the road ahead is mixed with possibilities and perils for SpaceX, investors can consider Space ETFs instead of the stock itself. The basket approach minimizes the company-specific risks.
As of now, pureplay space ETFs like Global X Space Tech ETF ORBX, the Tema Space Innovators ETF (NASA, Roundhill Space & Technology ETF MARS, Defiance Drone and Modern Warfare ETF JEDI, VistaShares Artificial Intelligence Supercycle ETF AIS and Procure Space ETF UFO are choices to play, though with a higher risk quotient as these funds do not possess sector diversification.
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This article originally published on Zacks Investment Research (zacks.com).