SpaceX Going Public Is Igniting Wall Street’s Own Race to Orbit

As Elon Musk readies SpaceX for a highly anticipated initial public offering, Wall Street is racing to find the next big winner in space exploration.

Space has evolved from a niche corner of the stock market into an area that offers the potential for diversity and growth. The euphoria around SpaceX’s market entry is driving fresh investor flows into the sector. Since the news of the offering first became public in early December, smaller space and related stocks have soared.

The SpaceX IPO “helps validate space as a scalable, institutional-grade growth industry,” said Greg Pendy, an analyst ...