Banking giant Wells Fargo says the public stock debut of Elon Musk’s SpaceX could help one sector of the market skyrocket this year.
In a new interview with CNBC, Mark Smith, senior vice president and portfolio manager at Wells Fargo Advisors, says that the initial public offering (IPO) of the spacecraft firm will help propel the communications sector in 2026 due to the mergers of companies.
“You’re going to see communication services, with all the consolidation you’ve seen this year, you’re going to really start to see that sector shine as well…
The theme is again what I just talked about, which is consolidation. I’ve never seen it before in my career where you’ve seen this much consolidation over the last year, companies merging. And I think that’s going to be great for profit margins.
I also think that there’s going to be a lot of interesting IPOs that come out. I think SpaceX, to name one, is going to really propel that sector and give it a catalyst to go even further into the next year.”
According to Smith, SpaceX is going to help communications more so than tech due to its satellites revolutionizing the comms industry.
“When you’re looking at the satellites and all that and what I’m talking about, I think you’re going to really see the change in how we traditionally look at communication services over the next decade.”
Though SpaceX has yet to set an official date for its IPO, it is slated to launch sometime mid-to-late 2026 with an estimated valuation of over $1 trillion.
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Featured Image: Shutterstock/Space creator/Sensvector