Best SpaceX Partner To Buy Now | These Could Skyrocket 10x

[00:00:00]Folks, SpaceX went public on Friday and it continues to break record after record. However, a lot of people don't realize that we're heading into the next phase of the story.

[00:00:13]The coming phase is going to make some people generational money and it's going to cost others generational money.

[00:00:20]In today's video, we're going to break down four things.

[00:00:25]Number one, what happens next for SpaceX stock. Number two, when the anticipated cycle down is going to happen and the exact calendar dates you need to know.

[00:00:36]Number three, why I believe SpaceX's IPO success is setting it up to make very powerful acquisitions of smaller space companies.

[00:00:47]Uh and number four, the top space stocks I believe will benefit most from all of this over the long run. We'll go through them one by one.

[00:00:58]My favorites and a few you might want to think twice about.

[00:01:01]Uh I'll present my research and let you be the judge.

[00:01:05]And uh as always, if you're the one taking the ultimate risk, always do your own research.

[00:01:12]Let's do a quick recap. SpaceX priced its shares at $135 a piece and sold about 555 million of them.

[00:01:22]Raising $75 billion right out of the gate on Friday. Demand for this deal was massive. Everybody expected it to be big, but this was on a whole other level.

[00:01:36]It was oversubscribed many times over.

[00:01:39]So, the underwriters did what they do when the deal is this hot. They exercised what's called the green shoe, uh an option to sell even more shares into all that demand.

[00:01:51]Just this morning it became official.

[00:01:54]With that overallotment exercised, uh SpaceX sold nearly 639 million shares total and pulled in a staggering 85.7 billion dollars.

[00:02:08]The stock has been on an absolute terror. At the time of filming this, the stock was at $213 a share, putting it at about $2.8 trillion in market cap.

[00:02:20]For context, Amazon is worth about $2.65 trillion right now. By the time you watch this, the stock has probably moved up and down five more times.

[00:02:31]But, it's important to understand the historical context here.

[00:02:36]Uh take another Elon Musk company, Tesla.

[00:02:39]Uh rewind to June 2010. Tesla went public at $17 a share.

[00:02:46]It was a tiny deal, raising only about $226 million, pocket change by today's standards.

[00:02:54]The company had almost revenue, wasn't making a dime of profit, and uh the Model S didn't even exist yet.

[00:03:03]A lot of Wall Street considered it a joke, a company that IPO'd specifically to take retail investors' money.

[00:03:11]The financial media hammered for years that Tesla was far too dangerous to invest in, that you'd be much better off in something profitable and boring instead uh a heard this exact conversation before.

[00:03:28]And how did the Tesla IPO age? If you put $1,000 into Tesla at that IPO and simply held on, it would be worth more than $300,000 today. The stock is up more than 300 times from where it started.

[00:03:44]It became one of the single greatest wealth generators in the history of the stock market.

[00:03:49]But, I want to be honest about the nuances here because the price you enter at really does dictate your experience.

[00:03:58]Holding Tesla was nowhere near a smooth ride.

[00:04:03]For the first couple of years, the stock mostly chopped sideways.

[00:04:07]Then in 2013, it exploded up almost 600% in a single year and then went flat again for about five straight years. Five years of basically going nowhere.

[00:04:20]Along the way, the stock crashed at least 50% from its highs on four separate occasions.

[00:04:28]One of those drops exceeded 70%.

[00:04:32]There were very long stretches where people were routinely saying this company could go bankrupt.

[00:04:39]Early Tesla investors made fortunes, but the vast majority of people, especially retail investors, see a stock not moving for years and think it must be a scam or panic sell at the worst possible time. I've watched this pattern play out across my entire career. People refuse to buy a stock until it's already run up massively and then they panic sell exactly when it pulls back.

[00:05:06]And now, SpaceX is starting from a very different point than Tesla did. Tesla went public as a nearly broke startup, which is exactly why it had so much room to run 300 times over.

[00:05:18]SpaceX did the vast majority of its growth during its private period. The public SpaceX is already enormous, over $2 trillion with billions in revenue already flowing in.

[00:05:33]The easy ground floor type returns that early Tesla investors enjoyed have largely already gone to private investors, many of whom may be selling shares over the next 12 months.

[00:05:44]So, SpaceX and Tesla are two very different companies at two very different chapters, but the core lesson still holds and it's a powerful one.

[00:05:56]A company with a genuine technology moat run by a founder with this kind of relentless drive will be volatile, but it can reward patient long-term investors enormously.

[00:06:09]The key is making sure you're not overpaying and that you're buying during a fear cycle, not a euphoria cycle.

[00:06:17]Right now, the stock is being propped up by three temporary forces.

[00:06:21]Um a microscopic 4% float, off-the-charts demand, and the soon-to-come forced buying from index funds that have to add it and will be competing for that tiny available float.

[00:06:36]That's why you've seen such intense demand the last couple of trading days.

[00:06:41]A lot of buyers expect even more buyers to keep coming.

[00:06:45]Because the float is so small, the real question becomes where does the stock land once more of that float becomes available.

[00:06:55]And and that float is going to expand meaningfully over the next year. Let me walk you through the calendar.

[00:07:03]Late June into early July, index inclusions wrap up, but the FTSE, the Russell, and the big one, the Nasdaq 100.

[00:07:14]Once that forced buying is complete, that one-time automatic windfall is behind us.

[00:07:20]Long-term index investors will continue supporting the price, but this specific catalyst will be spent.

[00:07:27]Mid-July, the underwriters price stabilization window closes. The banks supporting the stock right out of the gate start stepping back.

[00:07:36]Early September, around September 2nd, the first earnings report as a public company. This is the first time the story has to turn into concrete numbers and Starlink subscriber growth, AI spending, Starship progress, all graded for the first time.

[00:07:57]There's a conditional clause that lets an early 10% chunk of insider shares unlock ahead of schedule if the stock holds at least 30% above its IPO price into that earnings date.

[00:08:11]SpaceX is already 30% above the IPO price. So, that early supply release is very much in play.

[00:08:19]December 8th, 2026 the big one. The main 180-day lockup expires.

[00:08:28]Early employees, early investors, and the banks can all begin selling around the same time.

[00:08:33]Many analysts are calling this a candidate for one of the largest single-day insider selling events in market history.

[00:08:41]June 12th, 2027, Elon's own gigantic block of shares, billions of them, unlocks.

[00:08:52]Even after the December cliff, his mega stake remains the last enormous overhang sitting out there.

[00:09:00]Stocks trade on supply and demand.

[00:09:03]Right now, supply is very low and demand is very high.

[00:09:07]Over the coming months, demand will likely cool as the publicity fades and supply will expand considerably.

[00:09:16]Once that plays out, I believe you'll start finding genuinely good value in SpaceX stock. I want to be clear about something.

[00:09:25]SpaceX is a generational, life-changing company, but your life only gets changed positively if you buy in at a good price.

[00:09:36]Let me walk you through why this company matters so much because understanding that helps you recognize the dip buying opportunities that are likely coming over the next several months.

[00:09:47]Number one, they own the cheapest way to get to space and nobody is close.

[00:09:52]SpaceX figured out how to land a rocket, refurbish it, and fly it again repeatedly.

[00:09:59]Nearly everyone else discards the rocket after one flight.

[00:10:03]SpaceX handles more than 80% of everything launched into space from the entire planet.

[00:10:11]When you control the cheapest route into space, every other space company eventually has to come to you.

[00:10:20]Uh and and number two, uh Starlink is a uh a money machine.

[00:10:28]Starlink beams internet down from thousands of small satellites reaching people in remote areas, airplanes, ships, and the military anywhere on the globe.

[00:10:41]It already has over 12 million paying customers growing around 50% a year and retains a large share of every dollar in profit.

[00:10:51]There's still billions of people on Earth without good internet access and Starlink is years ahead of anyone trying to replicate it.

[00:10:59]This one piece of the company alone is probably worth 4 to 500 billion dollars.

[00:11:05]Number three, the whole company is one interconnected machine. This is the part most people miss entirely.

[00:11:11]They think SpaceX is a holding company with a bunch of unrelated businesses.

[00:11:18]It It's the opposite. Uh cheap rockets let SpaceX launch its own Starlink satellites for next to nothing.

[00:11:26]Uh Starlink generates enormous cash.

[00:11:30]That cash funds Starship and AI projects, which in turn make launching even cheaper, looping right back to the start.

[00:11:39]Each part makes the other stronger.

[00:11:43]Plenty of companies do one of these things well.

[00:11:45]Nobody else has them all locked together in a single reinforcing ecosystem.

[00:11:51]Number four, Starship opens doors nobody else can.

[00:11:56]Uh Starship is a massive fully reusable rocket capable of hauling about 100 tons into space at once, cutting the cost of reaching orbit by up to 99%.

[00:12:09]When space gets that cheap, ideas that used to be pure science fiction, orbital factories, lunar bases, Mars colonization, even rapid point-to-point travel on Earth start to make real business sense.

[00:12:26]I think a lot of the proposed timelines are probably too aggressive.

[00:12:31]But this company owns the trajectory here.

[00:12:34]There's no real alternative if you're bullish on this space.

[00:12:39]Number five, combining AI and space to solve AI's biggest problem.

[00:12:44]Uh SpaceX includes XAI alongside some of the largest supercomputers on the planet.

[00:12:52]Starting around 2028, they want to put millions of AI computers into orbit.

[00:13:00]Data centers in space sound far-fetched, but SpaceX already has roughly 10,000 satellites up there.

[00:13:06]Many with components needed for a space-based data center power generation, beaming data to Earth, remote operation.

[00:13:17]Uh You could already argue some of their existing satellites function somewhat like data centers.

[00:13:25]And uh Number six, the US government cannot do without them.

[00:13:31]SpaceX holds more than $20 billion in contracts with NASA, the military, Space Force, and intelligence agencies.

[00:13:39]They fly American astronauts to the space station and launch the country's defense and spy satellites.

[00:13:46]The United States now needs this company to reach space at all.

[00:13:52]That kind of customer doesn't walk away and can't easily be replaced.

[00:13:57]SpaceX's head start, competitive moat, and now it's massive funding make it nearly impossible for any direct competitor to catch up.

[00:14:07]Many smaller companies in the space economy aren't really competing with SpaceX. They exist because of the path SpaceX has cleared.

[00:14:14]I believe SpaceX is going to become an active acquirer, and and here's why.

[00:14:20]First, they're sitting on a mountain of cash.

[00:14:23]$85 billion just raised.

[00:14:26]That alone is enough to buy almost any smaller space company outright in cash without blinking.

[00:14:35]Second, and this is the big one, their stock is now essentially a second form of currency.

[00:14:42]Uh a public company can pay for acquisitions using its own shares instead of cash. And because SpaceX shares now trade openly every day, sellers can convert those shares to cash whenever they want.

[00:14:58]Before the IPO, getting paid in private SpaceX stock was awkward and illiquid. Now it's nearly as good as cash.

[00:15:06]That makes SpaceX a far more attractive buyer than it was a week ago.

[00:15:12]Third, because the stock is valued so richly, that stock currency is incredibly powerful.

[00:15:20]When your own shares are worth over $2 trillion, you can acquire an entire company by handing over a relatively tiny slice of yourself.

[00:15:31]Fourth, they've already done this.

[00:15:34]Last year, before going public, SpaceX agreed to buy around $19 billion of wireless spectrum from a company called EchoStar, paying for a large chunk of it with SpaceX stock.

[00:15:49]They also absorbed Musk's XAI in an all-stock deal worth about a quarter of a trillion dollars.

[00:15:57]This is not hypothetical.

[00:15:59]It's already core to how SpaceX operates, and now that the stock is public and liquid, they can move faster and bigger.

[00:16:09]I went through the various parts of the supply chain looking for places where acquisition would make strategic sense.

[00:16:17]Spectrum, the number one prize. This is the clearest category because they're already doing it.

[00:16:23]SpaceX needs as much wireless spectrum as it can get to beam phone service directly from satellites to your phone, especially if they want to build data centers in space.

[00:16:36]The likeliest targets, Globalstar, ticker symbol GSAT. They own spectrum and already power the emergency SOS feature on iPhones.

[00:16:48]A very natural fit.

[00:16:50]EchoStar, ticker symbol SATS. SpaceX has already bought a chunk of their spectrum and could simply continue acquiring more.

[00:17:00]Viasat, ticker symbol VSAT, a satellite internet company sitting on a large stockpile of global spectrum and customers.

[00:17:10]And the boldest idea on this list, AST SpaceMobile.

[00:17:15]SpaceX's main competitor in connecting regular phones directly to satellites.

[00:17:21]Buying them would eliminate the competition and absorb their technology and spectrum in one move.

[00:17:29]The catch is that AST is tied up with major phone carriers like AT&T and Verizon and [snorts] a deal this size would draw heavy regulatory scrutiny.

[00:17:42]Suppliers pulling the supply chain in-house.

[00:17:45]Uh SpaceX likes owning its entire production line because it cuts costs and increases speed. Uh Smaller component suppliers make for easy bite-size targets. Redwire.

[00:17:59]Ticker symbol RDW builds components and infrastructure for spacecraft.

[00:18:04]MDA Space.

[00:18:06]Ticker symbol MDA builds satellites and space robotics.

[00:18:11]Filtronic.

[00:18:13]Ticker symbol FLTCF is already a supplier into the Starlink network. A tiny, cheap bolt-on acquisition that would be easy to execute.

[00:18:23]Uh Data and the moon rounding out the empire.

[00:18:29]Planet Labs. Ticker symbol PL and Spire.

[00:18:33]Ticker symbol SPIR. Both sell data gathered from space which SpaceX could bundle into its defense and government offerings.

[00:18:43]Intuitive Machines.

[00:18:45]Ticker symbol LUNR builds moon landers which would slot directly into SpaceX's own lunar and Mars ambitions.

[00:18:56]If SpaceX is ever rumored to be in talks with any of these companies, that could cause a significant rally in their share prices.

[00:19:04]It's it's worth following SpaceX's strategy closely as more information comes out. I might be wrong about acquisitions happening, but strategically, I think it makes a great deal of sense for them.

[00:19:18]One of the problems with nearly every space stock is dilution.

[00:19:24]Most space companies, large and small, fund themselves primarily by selling shares, which creates a serious long-term headwind for shareholders.

[00:19:35]The companies that do well long-term will be the ones that either get acquired by SpaceX, have direct partnerships with SpaceX, hold enough cash to dilute minimally, or generate enough real revenue and long-term potential that dilution gets overshadowed by genuine value creation.

[00:19:58]Bringing this all together, SpaceX itself has an explosive near-term setup driven by the tiny float and the coming forced index buying.

[00:20:10]But, the valuation still has a long way to go to earn itself at these levels.

[00:20:14]Uh I think you're going to see this stock pull back meaningfully as the float unlocks over the coming months.

[00:20:21]That said, I'd be surprised if it finds a floor below $1 trillion.

[00:20:27]I'd also be surprised if it can hold it $2 trillion or $1.5 trillion right now.

[00:20:33]My view right now isn't to buy SpaceX shares directly. It's to watch for the next acquisition target and pay attention to how those rumors move individual stocks.

[00:20:44]Long-term, the biggest opportunity will come when SpaceX finds its eventual dysphoria lows once the publicity cycle has aged and the real value becomes visible in a company that has already proven itself generational in every sense of the word.

[00:21:05]Anyways, I hope this video was useful. Let me know your thoughts on SpaceX down below.

[00:21:10]Have a great rest of your day.