Core Viewpoint - SpaceX has acquired xAI in the largest M&A transaction in history, creating a combined value of $250 billion for xAI and $1 trillion for SpaceX, which is expected to significantly impact the space and AI industries [1][2]. Company Overview - SpaceX is one of the only profitable space companies, reporting $8 billion in profit on $15.5 billion in revenue last year [3]. - The company has seen a dramatic increase in space launches, from 102 in 2019 to 324 in 2025, indicating aggressive growth [3]. Investment Opportunity - Destiny Tech100 (NYSE:DXYZ) is positioned to benefit from the upcoming SpaceX IPO, as it provides access to shares in private tech companies typically available only to venture capitalists [5]. - DXYZ holds a significant portion of SpaceX, constituting 23-35% of the fund, making it sensitive to SpaceX-related news [6]. - The stock is currently trading at a 52% discount to its December 2024 highs, with potential for significant appreciation as hype builds around the IPO [7]. Market Impact - The SpaceX IPO is expected to re-rate the entire space industry, potentially leading to a valuation of $1.6 trillion based on a 200x earnings premium on 2025 profits [8]. - A successful SpaceX IPO could serve as a benchmark for other space stocks, which may also experience multibagger gains [9]. Strategic Considerations - While DXYZ is expected to gain from the SpaceX debut, it is advised to take profits before the IPO, as the fund may lose its purpose post-IPO [10][11]. - Standard IPO lock-up periods will apply, limiting the fund's ability to monetize gains immediately [11].
Buy This 1 Stock Hand Over Fist Before SpaceX Goes Public This Year
247Wallst·2026-02-04 16:57