A Spacex Ipo Is Coming, But You Don't Have To Wait. …
Key Points
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SpaceX is looking to go public this year.
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The space and satellite giant is also just merged with Elon Musk’s AI company xAI.
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Here’s how stock market investors can gain exposure to SpaceX without waiting.
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NASDAQ: SATS
EchoStar
Market Cap
$32B
Today’s Change
(-1.53%) $1.69
Current Price
$108.67
Price as of February 23, 2026 at 10:53 AM ET
Image source: Getty Images.
Want SpaceX today? Buy EchoStar
While some diversified exchange-traded funds currently have exposure to SpaceX as part of a diverse portfolio, the publicly traded stock EchoStar (SATS 1.53%) is the best way to concentrate a bet on SpaceX’s success.
One year ago, EchoStar was merely a mid-cap telecom company that appeared to be in trouble. The company owned the DISH TV and SLING TV satellite cable companies, which are a declining business, along with the Boost mobile wireless company, which is growing, but unprofitable and relatively tiny. EchoStar also offers satellite broadband under its Hughes brand, but that, too, appears to be a small and declining business.
However, things changed rapidly for EchoStar when it decided — possibly under pressure from the Trump Administration — to sell the valuable wireless spectrum assets it had accumulated over many years.
Investors either weren’t expecting EchoStar to sell these assets or didn’t realize their value, because these sales completely transformed the company, and the stock has subsequently more than quadrupled. In August, EchoStar agreed to sell AT&T (T +2.41%) $22.65 billion worth of spectrum, and ed that up with a $19 billion sale of spectrum to SpaceX, of which $8.5 billion of the sale came in the form of SpaceX stock. EchoStar ed that up with another smaller $2.6 billion spectrum sale to SpaceX, for which it received the entire $2.6 billion in SpaceX stock.
Although EchoStar has sold most of its spectrum, which it plans to license for its current satellite and wireless businesses, EchoStar still has a bit more spectrum to sell. While it’s difficult to ascribe an exact value to that spectrum, some analysts believe bidders will be “aggressive” in paying up for these scarce assets.
Expand
NASDAQ: SATS
EchoStar
Today’s Change
(-1.53%) $-1.69
Current Price
$108.67
Key Data Points
Market Cap
$32B
Day’s Range
$108.42 – $110.23
52wk Range
$14.90 – $132.25
Volume
30K
Avg Vol
5.8M
Gross Margin
12.90%
How much of EchoStar’s value is now SpaceX?
When these transactions close, EchoStar will have $24.1 billion in cash against $13.4 billion in debt, with another $2 billion in interest coverage coming from SpaceX as part of its $19 billion deal. So, one might say that EchoStar has basically $12.7 billion in net cash. On top of that, EchoStar also has additional spectrum of unknown value.
Then, of course, EchoStar acquired $11.1 billion in SpaceX stock at some unknown valuation. But investors can still make an educated guess as to what those s are worth today.
Just before and just after these transactions, the financial media reported SpaceX’s valuation at $400 billion in July and then $800 billion late last year. In July, the Wall Street Journal reported on a potential SpaceX employee stock sale at a valuation of around $400 billion. But in early December, the WSJ also reported SpaceX’s CFO had told investors the company was looking to raise money in a funding round valued at $800 billion.
EchoStar’s two transactions occurred between these dates, so, for the sake of argument, let’s say EchoStar acquired 2% of SpaceX at a $550 billion valuation. Add in the 20% dilution from the xAI merger, and EchoStar would own about 1.6% of the combined company, excluding any further dilution from subsequent funding rounds. 1.6% of SpaceX’s recent $1.25 trillion valuation would make EchoStar’s stake worth $20 billion.
EchoStar’s market cap is worth about $32 billion today — almost exactly equal to that $20 billion plus EchoStar’s net cash.
Most of EchoStar appears to be SpaceX, and it could be at a discounted price
Assuming these estimates are in the ballpark of correct, it appears that SpaceX accounts for roughly 62.5% of EchoStar’s value at current prices. Meanwhile, EchoStar investors are also getting $12.7 billion in cash, along with some additional spectrum and the satellite TV, broadband, and mobile wireless businesses, valued essentially at nothing.
In the third quarter, EchoStar’s leadership formed EchoStar Capital, which will invest EchoStar’s net cash into technology, media, and telecom businesses that may or may not be related to its core telecom businesses.
Assuming EchoStar’s managers can create value from all that cash, not only would buying EchoStar stock today give one exposure to SpaceX, but EchoStar investors may also be getting a big discount on the sum of EchoStar’s parts — that is, provided SpaceX lives up to its lofty trillion-plus valuation in the future.
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About the Author
Billy Duberstein is a contributing Motley Fool technology analyst covering semiconductors, hardware, software, and AI, as well as consumer goods. Billy loves looking at the story behind investments from an interdisciplinary point of view, with an equal appetite for high-growth disruptors and beaten-down value names. He is also CEO of Stone Oak Capital, a registered investment adviser in California. He previously worked as a technology analyst for several hedge funds and as a research assistant at Wedbush Securities. Billy holds an MBA in finance from New York University and a bachelor’s degree in music from the University of Virginia.
Stocks Mentioned
EchoStar
NASDAQ: SATS
$108.67 (1.53%) $1.69
AT&T
NYSE: T
$28.66 (+2.41%) $+0.68
*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.
Sumber Artikel:
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