Advisors urge caution on SpaceX stock one month after its IPO

More than a month after SpaceX launched on the public market, financial advisors Continue to see little reason for investors to rush into the stockNoting that customers must be honest with themselves about why they want to disclose to the company.

So far, SpaceX has followed the general blueprint for the highly anticipated IPO, with initial excitement followed by a reasonable reevaluation based on earnings and fundamentals, said David Busch, chief investment officer of Scottsdale, Ariz.-based Trajan Wealth LLC. After launching at $135 per share and reaching a high of $226, the stock has fallen sharply and is now trading below its IPO price. (It was at about $127 a share as of midday Tuesday.) The adviser also finally looked at the company’s financials in its S-1 filing, which revealed that in the first quarter of 2026, Space recorded a net loss of more than $4 billion, primarily due to its xAI segment.

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“Part of the profit is Starlink, and that’s kind of the money inside the SpaceX IPO,” Busch said. “So, I would say that valuations are still assuming close to flawless performance across many capitalized businesses.”

Busch still believes SpaceX has an interesting story, so he plans to listen to the next earnings call. But this is a time for discipline, he noted — especially since the window for early SpaceX investors to cash in their shares is still open.

Similarly, in a comment released on July 16, Janus Henderson analysts Taylor Portman and David Chung warned that while SpaceX’s plans to capitalize on future trends such as “orbital data centers” may be more realistic than some give credit for, “investors should treat it as an option rather than a base case, with a very wide open timeframe and questions.”

Communications, defense and infrastructure are all sectors that look set to benefit from strong global trends in the coming years, Portman and Chung write — but when it comes to specific companies, investors still need to look for reasonable valuations and evidence that companies can deliver on their growth prospects.

What investors should keep in mind is that most public companies tend to underperform the market for at least a year after their IPO, and sometimes longer, said Gina Martin Adams, chief market strategist at Atlanta-based RIA HB Wealth. If they believe in the overall growth prospects of the space exploration industry, they may be better off investing in innovation-focused ETFs, including space-focused companies like SpaceX, to benefit from more diversified exposure. But if they’re eager to invest directly in SpaceX stock as soon as possible, they need to ask themselves if that desire is driven by conviction or FOMO.

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“One really classic question to ask yourself is this: If I went into SpaceX today and we passed the 20% resolution, would I still be a happy owner of SpaceX?” Martin Adams said. “If the answer is ‘yes,’ you may have high confidence that you want to own this company.”

Matthew Parenti, managing director of Chicago-based Hightower Signature Wealth, agrees. If the client is ready for a long-term holding and has a diversified portfolio, he feels that this time may be right for them to invest – as long as they know that they are not likely to experience the explosive growth that the company led by Elon Musk before, because they enter the public market much earlier in their life cycle.

Investors in ETFs that track the Nasdaq 100 already have exposure to SpaceX, since the index’s new methodology helps the company track quickly. However, since the index is floating, “investors should remember [SpaceX’s] The public float may represent only a small portion of the total value of the company,” wrote Sam HuszczoCIO at Lathrup Village, Mich.-based RIA SGH Wealth Management, in an email.

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In addition, at least six closed-end funds – including a distance fund and two tender funds – have SpaceX allocations ranging from 0.74% to 16.41%, according to XA Investments. However, Parenti said For clients looking for exposure through mutual funds, he would recommend ETFs To access liquidity more easily. overall, More than 150 ETFs Now holding SpaceX, according to Morningstar.

What investors should avoid at this point is committing to a fund that holds SpaceX as its primary holding, for the same reason they should hold off on buying SpaceX stock until they have an informed understanding of the company’s future prospects, Busch said.

Both Martin Adams and Huszczo suspect that many investors today are driven by FOMO. Since many of the big names that announced plans to go public in the coming months have been private longer than the historical norm, retail investors have a better understanding of what they are doing and the potential impact on the economy, said Martin Adams. “There is a lot of need for ownership, but it is difficult to distinguish that from the fear of disappearing in this environment, I think it is a little of both.”

Huszczo points to how the rapid leveraged product and options activity that appeared in SpaceX stock a few days after the IPO – more than a million options on SpaceX were traded on June 16, while at least 11 leveraged SpaceX ETFs launched on the same day – is a sign that FOMO may be driving investor behavior. “Whenever investors are more excited about the wrapper than the underlying investment, it should be slowing down,” he wrote.