Can you buy SpaceX stock?
That’s the question on a lot of investors minds right now as Elon Musk, the chief executive officer (CEO) of SpaceX, makes news headlines with his 9.2% stake in Twitter (NYSE:TWTR), effectively becoming the largest individual shareholder of the social network. While the short answer is “no,” you cannot buy SpaceX stock because the Hawthorne, California-based commercial space company is privately held and does not have shares listed on a public stock market. However, there are other indirect ways to invest in SpaceX.
One of the best ways to indirectly invest in SpaceX is by purchasing shares of Momentus (NASDAQ:MNTS), another commercial space company that is publicly traded and just signed an agreement with SpaceX to piggy back on its upcoming launches into space. In a news release, Momentus announced that it will participate in four upcoming SpaceX launches into orbit, where Momentus plans to test several of its developmental technologies.
SpaceX, which was founded in 2002, provides commercial flights into space for NASA, ferrying supplies and crew members to the International Space Station. SpaceX is also in the process of launching its proprietary Starlink communications satellites into orbit, where they provide broadband internet service back here on earth. While Elon Musk has spoken publicly about his desire to take SpaceX public, there have been no announcements made regarding the timing of an initial public offering (IPO).
Momentus says it plans to offer commercial space services similar to those offered by SpaceX, including delivering payloads of supplies into space through its own aircraft and technologies. However, right now, Momentus products are in the early development stages and the company is relying on its deal with SpaceX to test its products in orbit later this year.
MNTS stock has declined 60% in the past six months and now trades at $4.26 per share, putting it in penny stock territory. However, the shares jumped 45% higher on news of its deal with SpaceX.
So while it is not possible to buy shares of SpaceX currently, investors wanting exposure to the company and the work it is undertaking can invest indirectly by taking a position in Momentus. Momentus has a launch agreement secured with SpaceX. Keep in mind that Momentus is an unproven commercial space company that is largely experimental at this point. And MNTS stock has fallen steeply in recent months and is a volatile penny stock. A rebound in Momentus stock is not guaranteed.
On the date of publication, Joel Baglole did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
