Contributor As of now, Starlink is already operational, offering internet to places that have long been left out of the digital revolution. This not only creates a new revenue stream for SpaceX but also positions the company as a global leader in the telecommunications space. With the potential to bring connectivity to billions of people, Starlink could significantly boost SpaceX’s profitability over the next decade, adding even more value to the company’s portfolio. But is this value already included in the value of the stock? Is it possible or even likely that the company may already be overvalued? Only the future will tell and investors should exercise caution as they contemplate any potential investment in this area. The Sky’s the Limit? SpaceX’s meteoric rise in the space industry has naturally led to speculation about its valuation. Two years ago, the company was valued at $100 billion, but with the continued success of its rocket launches, Starlink’s rapid expansion, and future projects like the Starship mission to Mars, that number is likely to be higher today. But what should the true value be and has most of the return already been generated? Will investor enthusiasm push this stock beyond reasonable value? Despite strong growth, SpaceX remains a private company, meaning retail investors don’t have a direct way to buy shares on the stock market. This creates a challenge for those who want to get in on the action. But not to worry—while you can’t buy SpaceX stock directly, new opportunities for retail investors are emerging. These include a Closed-End Mutual Fund, an Interval Fund, an Open-End Mutual Funds and an ETF. One way investors can gain exposure to SpaceX is through a closed-end fund that includes SpaceX as part of their portfolio. However, there are a few downsides. First, investors may pay a premium to net asset value (NAV)—sometimes the premium is many times the underlying value. Additionally, these funds may charge management fees in the range of 2.5% to 3%, which can erode long-term returns. XOVR ETF: For those seeking an option to gain exposure to SpaceX with lower fees and a value closer to NAV, the XOVR ETF may offer a possible alternative. This exchange-traded fund provides exposure to SpaceX (currently the largest position in the fund), with a few advantages: Daily liquidity, allowing investors to buy and sell shares like any other stock. No minimum investment, making it an option for retail investors of all sizes. A fee of just 75 basis points (0.75%), about a third of the cost of closed-end funds. With the XOVR ETF, investors can gain exposure to SpaceX without dealing with the NAV premiums or fees that may come with other investment options. But this should not imply that the stock is necessarily a great value going forward. Frequently, companies with exceptional growth spurts discover that their valuations plummet later on. Could this be the case with SpaceX? Currently, SpaceX is the top holding in XOVR ETF but this may change over time with varying market conditions. Moreover, XOVR holds a heavy weight in the ER30TR index. This index performs well in growth markets but underperforms during market contractions. Why SpaceX’s Growth Matters The growing interest in SpaceX, both as a technology company and as an investment opportunity, is no accident. The company’s cutting-edge innovations are not only revolutionizing space travel but also setting the stage for future advancements in telecommunications, artificial intelligence, and global connectivity. For investors, SpaceX represents a unique opportunity to support a company that is paving the way for the next frontier of human progress—whether that’s launching humans to Mars, providing internet access across the globe, or transforming the commercial space market. The sky's the limit for SpaceX as a space exploration company, but does that necessarily translate to the value of the stock going forward? The valuation of the company has already soared and there are never any guarantees for the future. The stock could continue to rise, but the value could also plummet. SpaceX is still a relatively new company with many unproven technologies and competitors. The future appears bright, but there are no assurances that growth will continue or even grow at the same pace. Conclusion: As SpaceX continues to reach new heights, the question remains: are you ready to join the liftoff? Whether through closed-end funds, open-end funds, Interval funds or through the an ETF, there are opportunities for retail investors to participate in this exciting journey. But with the stock being pushed to new levels and management fees to consider, it’s important to carefully weigh the risks and rewards before blasting off. Much of the growth may already have been earned by prior investors and the current stock value may offer diminished returns going forward. SpaceX is shaping the future of space exploration—and with it, the future of investment opportunities. Are you ready to get on board? Prnewswire