SpaceX Soars in Historic IPO: Should You Play SPCX ETFs or the Stock?

SpaceX SPCX shares surged 19% in their Nasdaq debut on Friday, marking the largest IPO in history. SpaceX raised a record-breaking $75 billion in its IPO. The stock opened at $150, above its IPO price of $135, and closed at $160.95, valuing the company at roughly $2.1 trillion.More than 500 million shares changed hands during the session, approaching the record first-day trading volume seen in the IPO of Facebook in 2012, as quoted on CNBC. The stock continued to rally in after-hours trading, adding another $100 billion to its market value. SPCX stock added 3.7% after hours on Jun 12, 2026.Musk Becomes the World's First TrillionaireThe blockbuster debut officially made Elon Musk the world's first trillionaire. His SpaceX stake was valued at roughly $690 billion at the IPO price, while his holdings in Tesla contributed another $279 billion to his net worth.Ambitious Growth Plans AheadAhead of the IPO, Musk said SpaceX had been cash-flow positive since around 2015 and was entering a major growth phase, per the same 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.Despite its rapid growth, the prospectus revealed that SpaceX has accumulated losses of $41.3 billion since its founding in 2002.  A Trillion-Dollar Valuation Raises QuestionsWhile investors embraced the debut, some market observers argue that SpaceX's valuation has become difficult to justify. The company generated roughly $19 billion in revenue, but its market capitalization now exceeds $2 trillion, placing it among the most valuable publicly traded companies in the United States.IPO Hype Often FadesMarket history shows many IPOs fall below their first-day lows within weeks. Even stocks that soar initially often give back a portion of those gains later.For SPCX, a debate started: how much future growth is already reflected in today's share price?Historical IPO data suggests investors may need patience.Research covering more than 9,000 U.S. IPOs between 1975 and 2021 found that 60% were flat or lower three years after their first trading day, while only 16% more than doubled during that period, per a Yahoo Finance article.Well, that doesn't mean the stock can't thrive in the public market. It simply means investors shouldn't assume the first trading day is their last chance to buy. Investors not with a strong stomach for risks should closely watch the trend. Chances to buy won’t die forever.All Are Not Equally Charmed by SpaceXBefore the IPO, not everyone was convinced SpaceX is worth its target valuation. Morningstar estimated the company's fair value at about $780 billion — less than half of the proposed IPO valuation, per a Yahoo Finance article.SpaceX faces solid financial risks from heavy cash burn, a huge $4.9 billion net loss in fiscal 2025, and heavy reliance on the Starlink and capital-intensive aerospace investments, per an article published on vipwealthadvisors.But then, SpaceX is not tied to rockets anymore; its reach has become wide-ranging — telecommunications, aerospace and artificial intelligence. And all these spheres are currently in high demand.SpaceX Could Soon Enter Major IndexesMajor index providers are rolling out new "fast entry" rules for blockbuster IPOs. The Nasdaq-100 has already reduced its waiting period for inclusion from three months to just 15 trading days.FTSE Russell has approved a rule change allowing large companies to enter the Russell Top 500 Index after just five trading days, rather than waiting for a quarterly review. iShares Russell 1000 Growth ETF IWF, and Invesco QQQ ETF QQQ are the ETF ways to hold the stock.Note that, new additions to major indexes are generally weighted based on float, or the number of shares available to public investors. However, the Nasdaq-100 has never been fully float-adjusted. Instead, the index will apply a weighting equal to three times the float for SpaceX and subsequent large IPOs.Other ETFs in Focus Asset managers are rushing to launch leveraged ETFs tied to SpaceX. 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.Investors have already poured money into ETFs that offer pre-IPO exposure to SpaceX, including the Baron First Principles ETF RONB, the Entrepreneur Private-Public Crossover ETF XOVR (read: When will SpaceX Show Up in Your Portfolio?).Bottom LineSpaceX is not merely a speculative story stock. Its rocket launches, Starlink network, defense contracts, and growing AI ambitions represent tangible businesses with significant long-term potential.However, history suggests that even transformative companies can deliver disappointing returns if investors pay too much too soon. The opportunity may be mammoth, but valuation matters. Hence, the ETF approach appears better as the basket approach minimizes the company specific risks.  Boost Your Portfolio with Our Top ETF InsightsZacks' exclusive Fund Newsletter delivers actionable information, top news and analysis, as well as top-performing ETFs, straight to your inbox every week.Don’t miss out on this valuable resource. It’s free!Get it now >>This article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks