The SpaceX IPO stock debut is one of the most anticipated market events of the year. Assuming everything goes according to plan, Elon Musk’s privately held SpaceX is set to go public on Friday, June 12. While a fortunate few retail investors may get access to shares at the initial offering price, most people will only be able to buy in on the open market afterward.

That raises an important question: should you actually do it? Here are some key considerations on both sides. (As always, this is informational and not personalized financial advice — you’ll want to weigh these factors against your own situation, and consulting a licensed financial advisor is never a bad idea.)

Reasons to Buy

1. SpaceX’s Businesses Are Built for the Future

Most people know SpaceX as the rocket and space launch company, but that’s only part of the story. The company’s portfolio is surprisingly broad, encompassing:

• The social media platform X (formerly Twitter)
• The artificial intelligence platform Grok
• The satellite-based internet service Starlink
• An emerging microchip business under development

Each of these ventures sits squarely at the center of where technology and society appear to be heading. For investors looking to bet on the long-term direction of innovation, that diversified footprint is a genuine draw.

2. The Enthusiasm Is Remarkably Strong

Hype around a company on the verge of an IPO is nothing new, but the buzz surrounding this particular offering feels especially intense. That level of excitement could, on its own, drive strong gains right out of the gate and sustain them for a while. The key phrase, however, is “for a while” — enthusiasm alone rarely powers a stock indefinitely, as we’ll see below.

3. The Company Generates Positive Cash Flow

Here’s a nuance worth understanding. While SpaceX isn’t technically profitable — and may not be for some time — the reason behind that is more encouraging than it first appears. The company is unprofitable largely because it’s pouring money into buying and building the assets that will fuel future revenue.

In terms of actual operations, the businesses as they run today are generating positive cash flow. That’s a meaningful distinction. Naturally, that cash flow will need to grow, and investment outlays will eventually have to be reined in for the company to reach true financial viability. Still, it’s reassuring that simply operating its businesses — even at a relatively small scale — isn’t burning through cash.

Reasons to Wait

1. Most Freshly IPO’d Stocks Trade Lower Within Weeks

Seasoned investors who’ve watched plenty of IPOs come and go know a common pattern: most newly public stocks tend to trade well below their early highs within a few weeks to a few months. That initial surge — driven by peak hype — often fades fast.

Consider some major names that ultimately delivered big long-term gains but slumped into the red shortly after going public:

• Uber Technologies
• Meta Platforms (then Facebook)
• Alibaba
• Visa

There are always exceptions, of course. But by definition, exceptions are unlikely — even when the enthusiasm is as robust as what’s surrounding SpaceX right now.

2. The Business Is Still Evolving

Evaluating even a mature, well-understood company is challenging enough. Making a meaningful fundamental assessment of one undergoing rapid transformation like SpaceX is nearly impossible.

On top of the changes already underway, there’s the potential for shifts that haven’t even begun yet. For example, there have been whispers that SpaceX could eventually merge with Musk’s electric vehicle company, Tesla. That kind of uncertainty matters, because markets tend to reward predictability and punish ambiguity — and that sentiment shows up directly in a stock’s price.

The Bottom Line

The SpaceX IPO presents a classic tug-of-war between extraordinary long-term promise and short-term uncertainty. On one hand, you have a company with futuristic businesses, intense investor enthusiasm, and positive operating cash flow. On the other, you face the historical tendency of new stocks to dip after their debut and the difficulty of valuing a business that’s still rapidly reshaping itself.

For many investors, patience may prove to be the wiser approach — letting the initial hype settle and allowing the company’s fundamentals to come into clearer focus before committing. Ultimately, the right move depends on your own risk tolerance, time horizon, and conviction in Musk’s broader vision. Whatever you decide, going in with clear eyes about both the opportunity and the risks is the smartest first step.