SpaceX’s record breaking SPCX IPO, with a $75 billion raise and a $1.77 trillion valuation, has just redrawn the map for satellite connectivity and launch providers. With only a small slice of shares going to retail investors and fresh capital earmarked for Starlink, reusable Starship rockets, and space based AI data centers, competition for satellite broadband and launch contracts could tighten quickly. If you hold or are considering stocks that sit in the same orbit as SpaceX, this is a moment to reassess your risk. Below, you will see 3 stocks exposed to this news, all potentially negatively affected.

Wall Street's queuing for one rocket. While SpaceX counts down to its IPO, other companies tied to the new space race are already in orbit. → 20 Compelling Space Companies watchlist · Global Space Race Investing Ideas screener · Scan the sector by valuation on Rocket Lab's valuation page.

Iridium Communications (IRDM)

Overview: Iridium Communications runs a global satellite network that keeps ships, aircraft, remote equipment and governments connected through voice, data, IoT and secure communication services, especially in places where traditional mobile and fiber networks do not reach.

Operations: Iridium generates about US$875.8m in revenue from providing global satellite communications services and related products.

Market Cap: US$4.8b

Investors looking at Iridium now face a very different set of questions, with SpaceX pouring fresh capital into Starlink and space based data, which could affect Iridium’s position in global connectivity and influence pricing over time. Iridium continues to benefit from government contracts, specialized secure services and new products like satellite based IoT and PNT. However, recent results already show margin pressure, a dip in net income and only flat to low single digit service revenue guidance. Combined with high debt, weak interest coverage and a relatively rich P/E multiple versus peers, there is a risk that slower growth could coincide with a demanding valuation at the same time that better funded rivals increase competitive pressure.

Iridium’s rich P/E, rising competition from a freshly funded SpaceX, and high debt could be masking a tougher road ahead. Pressure test your thesis against the 2 key rewards and 1 important major warning sign.

Rocket Lab (RKLB)

Overview: Rocket Lab designs and launches small and medium class rockets and builds satellites and related hardware, offering customers a bundled service that can put their spacecraft into orbit and then manage them once they are there.

Operations: Rocket Lab generates about US$452.5m from its Space Systems segment and US$227.1m from Launch Services, so roughly two thirds of revenue comes from satellite and space hardware rather than rocket launches.

Market Cap: US$60.8b

Rocket Lab sits in the slipstream of SpaceX, with investors drawn to its mix of launch services and higher margin space systems. However, the fresh US$75b war chest from SPCX raises the bar for what it must achieve. The company is still loss making, carries a very high P/B multiple versus peers and relies entirely on external funding, which adds pressure as it ramps capital intensive Neutron development. Nasdaq 100 inclusion and a large backlog around government and defense work have pushed the stock into the spotlight just as competition for reusable rockets and satellite constellations intensifies. For investors, the key question is whether future growth can justify today’s valuation before funding costs or a slip in execution start to have a material impact.

Rocket Lab’s soaring profile and rich P/B ratio could be masking how dependent the story is on external funding and flawless execution. Before the hype outruns the balance sheet, review the Rocket Lab financial health report

Viasat (VSAT)

Overview: Viasat provides satellite based broadband and secure communications for airlines, governments, militaries, ships and remote users, along with the satellites, antennas and network equipment that power those services across multiple orbits.

Operations: Viasat generates about US$3.3b from Communication Services and US$1.3b from Defense and Advanced Technologies, with revenue split roughly US$3.2b from the United States and US$1.5b from international markets.

Market Cap: US$8.4b

Viasat sits right in SpaceX’s firing line, selling global satellite broadband and in flight connectivity at a time when Starlink has fresh US$75b to push capacity, pricing and coverage harder, which could make subscriber declines and heavy capital spending even tougher to absorb. The company has a record backlog and growing Defense and Advanced Technologies work, but it is still loss making, carries all external borrowing as funding and is expected to see earnings decline even as revenue creeps higher. Even with recent U.S. Space Force wins and ViaSat 3 progress, the stock’s appeal on price and P/S only matters if cash flow and debt discipline improve before competition or regulatory pressure bite harder.

Viasat’s heavy capital spending, external borrowing and pressure from Starlink could be masking a deeper problem with how this story funds itself. Before risks compound, read the Viasat financial health report

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.