SpaceX share sale sees valuation skyrocket

author-img By Arina Smith 5 Mins Read November 15, 2021 Last Updated on: November 18th, 2021


Space races have taken place between countries throughout history, like the scramble for cosmic conquest between the Soviet Union and the United States in the mid-20th century. However, today, we’re seeing one of the world’s wealthiest individuals, Elon Musk, enter the space race with his company Space Exploration Technologies Corp. (SpaceX).

SpaceX was founded in 2002 with the goal of transforming space travel and making commercial space voyages possible.

If you take part in stock trading, you might be wondering how you can purchase SpaceX stock and become involved in this exciting space adventure. Well, the answer is — you can’t.

Though a mature and highly valuable company, SpaceX remains private, which means that only large corporations and equity firms can invest in it. Unfortunately for individual investors, Musk has implied that he has no plans for the company to ever go public. SpaceX’s president and chief operating office, Gwynne Shotwell said that this would only be viable if the business was able to make regular trips to Mars.

Although public investment in SpaceX doesn’t look like it will ever reach lift-off, the value of the company has soared to new highs. In this article, we will look at how this has affected the company’s shares.

SpaceX share sale

SpaceX share sale

As previously mentioned, SpaceX is a privately funded company and its shares can only be purchased by large investors, these include:

  • Alphabet Inc.
  • Sequoia Capital
  • Ontario Teacher’s Pension plan
  • Baillie Gifford and T.Rowe Price Group Inc.

SpaceX managed to acquire a valuation of $100 billion on October 8th, following an agreement made with new and existing investors.

This saw the company commit to selling around $755 million of its private stock at $560 per share. To reach this valuation, the company reportedly did not have to raise any new funds, as this offer was a representation of SpaceX’s secondary sale of their existing shares.

This is a mammoth leap from the company’s valuation in February, sitting at $74 billion and offering a share price of $419.99. This increased valuation has seen the business become the second most valuable private company in the world, falling behind the Chinese giant Bytedance — an internet technology company.

Invest in space stock

Invest in space stock

SpaceX isn’t a viable investment venture, but that doesn’t mean that you can’t be involved in the journey towards cosmic discovery. There is a range of space stocks that you could invest your capital in. Here’s a list of some trader favorites:

Virgin Galactic

Virgin Galactic (NYSE: SPCE) could be a great stock for the future, however, there is uncertainty surrounding its potential. The company is attempting to break through with a brand-new industry — space tourism.

Much like SpaceX, Virgin Galactic hopes to offer commercial space travel to the general public, however, they are yet to have flown a single passenger. Despite this, the company has already signed up 600 paying customers, who are anxiously waiting to be the first to fly once the company’s vision fully takes off.

This might not sound like a significant waiting list, but considering a ticket costs $250,000, it would seem that these individuals would give a lot to become pioneers of space tourism.

Of course, there’s plenty of ‘ifs’ involved if you’re considering investing in this stock, but like any pioneer in an industry, an investment could potentially pay off massively in the future.

Aerojet Rocketdyne

Aerojet Rocketdyne (NYSE:AJRD) is America’s leader in rocket engine manufacturing. It’s involved in sending rockets to space and the creation of nuclear missiles. Aerojet’s engines are used to power NASA’s space travel and built the main engines used in the Space Shuttle.

The company’s earnings have also soared over the years, recording net earnings in 2019 of $141 million. If you’re looking for a mature, proven space stock then this powerhouse could be the perfect long-term investment. It has outperformed the Standard & Poor’s 500 Index (S&P500) on numerous accounts over the years.

Though you can’t invest in Elon Musk’s SpaceX at present, there are numerous stocks that you can open a position in, which could prove to be a great investment for the future.

When investing in the stock market you should know what your financial goals are and have a developed understanding of what makes a stock a buy right now. This includes a consideration of the company’s value, its price-to-earnings and price-to-sales ratios, and its dividend yields, which are all attributes to inform you of how well the company is faring.

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Arina Smith

I enjoy writing and I write quality guest posts on topics of my interest and passion. I have been doing this since my college days. My special interests are in health, fitness, food and following the latest trends in these areas. I am an editor at OnlineNewsBuzz.

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