The World Cup isn’t the only show in town… SpaceX ‘went public’ as it began offering shares you can buy in early June, creating a massive buzz.
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We’re not suggesting you’ll net a surefire winner with these shares, as no one can predict the future, but eToro is currently offering eligible new users $50 worth of SpaceX stock as a promotional reward (subject to eligibility criteria and terms and conditions), which is why we’ve partnered with it to help you start your investing journey.
For years, SpaceX has looked to the stars in a bid to capture the world’s imagination. Founded by Elon Musk, it’s helped redefine what is possible in space exploration — and now, following its recent blockbuster stock market debut, you have the chance to go along for the ride.
The launch of SpaceX shares on 12 June - the biggest initial public offering (IPO) in history raising $86 billion - has generated huge attention; the listing attracted significant interest from market participants in a company that’s become a byword for innovation, disruption and thinking beyond Earth’s horizon.
But before you rush to strap yourself in, it’s worth understanding exactly what SpaceX does, why investors are so excited and what risks you should consider before investing.
Here’s a beginner’s guide to one of the most talked-about companies on the planet.
Key summary:
- SpaceX’s stock market debut was the biggest in history, raising $86bn and triggering huge investor interest.
- Although public investors can now own shares in SpaceX, Elon Musk remains the key figure behind the business.
- Any investing involves a degree of risk: The value of your investments can rise and fall over time. Diversification is key: spreading your money across different types of assets can help reduce risk.
Why SpaceX’s launch has got the investment world buzzing
It’s not often that a business draws the attention of scientists, entrepreneurs, governments and everyday investors all at once. But SpaceX isn’t an ordinary business.
Since 2002, it’s gone from a bold idea sketched out by Elon Musk to one of the world’s most influential technology companies. And along the way, it has achieved a series of breakthroughs that many experts once believed were impossible — from landing rockets back on Earth to building a vast network of satellites orbiting high above it.
However, until now, investors could only watch the SpaceX story unfold from the launch pad.
Following its stock market launch this June, they finally have the opportunity to own a stake in the company themselves.
And the nature of SpaceX’s business itself is driving huge amounts of interest.
Investors aren’t simply buying shares in a rocket company; they’re buying into a vision of the future. Supporters see opportunities spanning satellite broadband and commercial space launches to future technologies that could transform how we live, work and communicate.
Add Elon Musk to the mix, and it’s no surprise the shares attracted significant investor attention following their market debut shortly after going public. Very few business leaders generate as much attention or inspire such passionate belief in what’s possible.
But while the hype is understandable, successful investing requires more than enthusiasm. Any company that launches onto the stock market with sky-high expectations will face enormous pressure to keep delivering.
SpaceX may have reached orbit, but any investor should remember that every investment journey can involve bumps during the flight.
Disclaimer: eToro is a multi-asset investment platform. Copy Trading does not amount to investment advice. The value of your investments may go up or down. Your capital is at risk. T&Cs apply.
What exactly is SpaceX and what does it do?
At first glance, SpaceX might look like a company that simply builds rockets. In reality, it’s trying to do something much more ambitious: to reshape humanity’s relationship with space.
One of the company’s biggest breakthroughs since launch in 2002 has been to develop ‘reusable rockets’ that can launch into space and then return to Earth to be used again.
By cutting the cost of launches, SpaceX has helped to make access to space much more affordable and more frequent than ever before.
But rockets are only part of it.
SpaceX also operates Starlink, a vast constellation of satellites orbiting above the Earth and beaming internet services to millions of people around the world.
From remote rural communities to ships at sea and even aircraft in flight, Starlink is helping connect places that traditional broadband struggles to reach.
The company also launches satellites for businesses, supports scientific missions and works alongside several government agencies on space projects.
Who owns SpaceX?
Elon Musk is the company’s largest and most influential shareholder.
For much of its history, SpaceX has been privately owned but its stock market listing has now opened ownership to public investors.
Today, ownership is shared between Musk and existing investors - both institutional and retail (everyday shareholders) - who have purchased shares through the stock market.
Of course, if you own shares, it doesn’t provide control over company decisions.
Instead, investors own a small stake in the business and share in its successes and setbacks as the company grows.
What are the risks of investing in SpaceX?
SpaceX may be one of the most innovative companies on the market, but every investment carries risk.
One of the biggest mistakes new investors can make is putting too much money into a single company.
Any business can face all manner of unexpected challenges, from competition to project delays, technological failure or poor financial results.
This is why diversification is so important. By spreading investments across different companies and sectors, you can reduce the impact of any single investment performing poorly.
It’s also worth remembering that investing is usually for the long term. Share prices can rise and fall sharply in the short term, especially when a company attracts significant media attention.
Rather than focusing on daily price movements, many successful investors look instead at where a business could be in five or ten years’ time.
If you’re considering investing in SpaceX, it may make sense as part of a diversified portfolio rather than as your only investment.
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Disclaimer: eToro is a multi-asset investment platform. Copy Trading does not amount to investment advice. The value of your investments may go up or down. Your capital is at risk. T&Cs apply.
Your capital is at risk. The value of investments can go down as well as up, and you may get back less than you invest. Past performance is not a reliable indicator of future results. This article is for information purposes only and does not constitute financial advice or a recommendation to invest.