Sometimes owning a piece of someone else's rocket company turns out to be pretty lucrative. EchoStar Corporation (SATS) shares climbed Wednesday as investors connected the dots between SpaceX IPO rumors and the satellite company's substantial stake in Elon Musk's space venture.

The SpaceX Connection

Here's the situation: Bloomberg reported that SpaceX may be gearing up for a blockbuster IPO next year, potentially raising more than $30 billion at a valuation around $1.5 trillion. That's not just big—it would be record-breaking territory.

EchoStar happens to be sitting on $8.5 billion worth of SpaceX stock, which it received after selling spectrum licenses to the Musk-led company back in September. At the time, SpaceX was valued around $400 billion. If SpaceX actually hits that $1.5 trillion valuation in an IPO, EchoStar's stake suddenly looks a lot more valuable.

The report suggests SpaceX could go public as soon as mid-to-late 2026, with much of its growth driven by Starship and Starlink. The Starlink business-to-business segment has gained serious traction, with customers including United Airlines and Qatar Airways signing up for the satellite internet service.

Musk himself recently downplayed any urgency around an IPO, posting on X that "SpaceX has been cash-flow positive for many years and does periodic stock buybacks twice a year to provide liquidity for employees and investors."

Analyst Boost

Adding fuel to Wednesday's rally, Morgan Stanley's Benjamin Swinburne upgraded EchoStar from Equal-Weight to Overweight, raising his price target from $82 to $110. That kind of endorsement doesn't hurt when your stock is already testing new highs.

Price Action: EchoStar shares were up 6.18%, trading at $99.32 at the time of publication.