Buying This Stock Could Give You Exposure to SpaceX Before Its IPO. Should You Do It?

Key Points

EchoStar acquired billions worth of SpaceX shares last year.

SpaceX is going public at a valuation that could approach $2 trillion.

• 10 stocks we like better than EchoStar ›

One of the most eagerly anticipated events of 2026 is undoubtedly the upcoming SpaceX IPO. The stock is expected to go public as early as this summer, and it'll give investors an opportunity to invest in Elon Musk's highly popular space company. Given the attention on space exploration of late and the successful launch of Artemis II, the timing couldn't be more ideal for SpaceX to go public.

Interest is high in SpaceX, and investors have been looking for ways to invest in it before it goes public. The gains, after all, can sometimes be incredibly lucrative for investors who are able to get in early. And there are ways to gain exposure to SpaceX without having to be an accredited investor. One option is to invest in EchoStar (NASDAQ: SATS).

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How does investing in EchoStar give investors exposure to SpaceX?

EchoStar is a satellite communications provider, and last year, it sold spectrum licenses to SpaceX, which it will use to grow its global mobile phone network, in exchange for shares of its business. Through the deal, EchoStar received $11.1 billion worth of SpaceX stock, which today is estimated to be worth around $28 billion.

As a result, investors who invest in EchoStar will gain indirect exposure to SpaceX. If SpaceX stock rises significantly in value, EchoStar will stand to benefit -- but that doesn't mean investors will see a corresponding increase in the value of their investment in EchoStar.

Why you may just be better off waiting

You may want to invest in EchoStar for the hopes of gaining exposure to SpaceX, but at the end of the day, your investment would primarily be in EchoStar. This company has a high debt load and has posted an operating loss in each of the past two years. Its sales have also been declining. This is not the type of stock that screams buy right now.

Meanwhile, with SpaceX's IPO targeting a fairly high valuation near $2 trillion, it may stumble out of the gate, which could be good news for investors who want to buy the space stock for the long term, enabling them to buy at a reduced price. With the IPO just months away, there simply isn't a compelling reason to buy EchoStar for indirect exposure to SpaceX, especially since it wouldn't necessarily lead to huge gains, plus, it would involve also having to hold a risky stock such as EchoStar in the process.

Should you buy stock in EchoStar right now?

Before you buy stock in EchoStar, consider this:

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David Jagielski, CPA has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.