Please ensure Javascript is enabled for purposes of website accessibility

In Space, Everyone Can Hear You Cheer

By Rich Smith – Updated Apr 6, 2017 at 1:05PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

And down on Earth, the crowd goes wild for SpaceX.

Move over Boeing (NYSE: BA), and look out Lockheed Martin (NYSE: LMT): There's a new rocket scientist in town, and its name is Space Exploration Technologies.

Last week, the tiny cosmic start-up, known as "SpaceX" to its friends, made history when it launched a Falcon 9 rocket into earth orbit. By sending its rocket up 155 miles, and "sticking" it up there, SpaceX staked a claim to "contender" status in the race to space -- and the race to riches, as private companies take over missions previously reserved for NASA. It took a first step toward fulfilling the promise inherent in its multiple 2008 contract wins, when alongside more established rival Orbital Sciences (NYSE: ORB), NASA tapped SpaceX to deliver supplies to the International Space Station.

It's a big dream, but SpaceX founder Elon Musk has never been one to shy away from a challenge. In the market for moving dollars from Point A to Point B, he built PayPal into a viable contender to Western Union before he sold off the company to eBay for a small fortune. He's taken said fortune and used it to found both SpaceX and electric car maker Tesla Motors.

Hurray for him. What's in it for me?
Fair question. This is, after all, an investing website. And good news for a private business like SpaceX may not seem all that relevant to investors in public companies. But according to The Wall Street Journal, SpaceX may not stay private for long. In an orbit-inspired story on the company's history yesterday, the Journal discussed SpaceX's need for capital at some length. Turns out, cash flow problems have already forced Musk to sell off a 20% stake in his brainchild. Now that SpaceX has some positive press under its belt, the stage may be set for an IPO.

If this is the way it plays out, it could mean a win-win scenario for all concerned. SpaceX could raise much-needed capital, and avoid the "Big Space" bearhug that's already seen Northrop Grumman (NYSE: NOC) envelope Scaled Composites, maker of SpaceShipOne. It could even pave the way for "me-too!" IPOs by Jeff Bezos's Blue Origin and Richard Branson's Virgin Galactic.

In which case, Fools too could soon see their chance to buy a piece of pie in the sky.

Want to learn more about SpaceX? Train your telescope on the following Foolish stars:

Fool contributor Rich Smith does not own shares of any of these companies -- but he'd dearly love to get in on the IPOs. You can find him on CAPS, publicly pontificating on his favorite stock ideas under the handle TMFDitty, where he's currently ranked No. 385 out of more than 165,000 members.

Western Union is a Motley Fool Inside Value pick. Orbital Sciences is a Motley Fool Rule Breakers recommendation. eBay and Western Union are Motley Fool Stock Advisor choices. Motley Fool Options has recommended a bull call spread position on eBay. Motley Fool Options has recommended writing covered calls on Western Union. Try any of our Foolish newsletters today, free for 30 days. The Motley Fool has a disclosure policy.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

The Boeing Company Stock Quote
The Boeing Company
BA
$131.26 (-5.37%) $-7.45
Lockheed Martin Corporation Stock Quote
Lockheed Martin Corporation
LMT
$413.07 (-2.13%) $-9.01
Northrop Grumman Corporation Stock Quote
Northrop Grumman Corporation
NOC
$478.82 (-3.55%) $-17.64
Orbital ATK, Inc. Stock Quote
Orbital ATK, Inc.
OA

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
329%
 
S&P 500 Returns
106%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 09/24/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.