How to Invest in Anduril Stock Before Its IPO

Global conflicts have surged in recent years, heightening interest in defense stocks. Investors are increasingly recognizing the value of having defense exposure in their portfolios. Anduril Industries offers a unique approach to defense, focusing on software rather than traditional military hardware like battleships and fighter jets.

At the core of Anduril’s operations is its open software platform, Lattice. The company describes Lattice as “an autonomous sensemaking and command & control platform” that powers its suite of defense capabilities. However, Anduril also invests in physical assets, including drones and solid rocket motors, alongside its software innovations.

With a strong emphasis on autonomous systems and artificial intelligence (AI), Anduril is attractive to investors interested in the future of defense technology. The company made headlines in September 2023 by acquiring Blue Force Technologies, known for its combat-capable drones.

Investors eager to add Anduril stock to their portfolios should consider several factors, including the process for purchasing shares, the timing of its potential initial public offering (IPO), and alternative investment options.

Is Anduril Publicly Traded?

As of April 2024, Anduril remains a privately held company, which means its stock isn’t available on public exchanges. This status is disappointing for retail investors interested in acquiring Anduril stock. Despite this, Anduril has attracted significant attention from venture capital firms such as Andreessen Horowitz and Valor Equity Partners, which have invested in the company during its funding rounds.

 

Anduril Stock Overview

Aspect	Details
Keyword	Anduril Stock
Company Overview	Anduril Industries specializes in defense technology with a focus on autonomous systems and AI.
Current Status	As of April 2024, Anduril is privately held and its stock is not publicly traded.
IPO Prospects	No specific IPO date announced; possible timeline suggested for 2026 by co-founder Palmer Luckey.
Investment Options	For Accredited Investors: Platforms like Forge Global offer opportunities to invest in Anduril pre-IPO. For General Investors: Consider similar companies like Lockheed Martin, Northrop Grumman, and Kratos Defense.
Financial Insights	Estimated revenue of $342 million in 2023, up from $236 million in 2022 (source: Sacra).
Related ETFs	SPDR S&P Kensho Future Security ETF (FITE): Includes defense and AI companies. ARK Autonomous Technology & Robotics ETF (ARKQ): Covers AI and robotics sectors. iShares U.S. Aerospace & Defense ETF (ITA): Focuses on major defense contractors.
Investment Strategy	Explore ETF options or invest in companies with similar defense and technology focus if Anduril stock is unavailable.

 

When Will Anduril IPO?

Investing in IPO stocks presents unique opportunities, but it involves risks. Many companies are planning IPOs in 2024, but it is unlikely that Anduril will join the IPO calendar soon. According to Palmer Luckey, a co-founder of Anduril Industries, while there is interest in an IPO, there is no set timeframe. Luckey has suggested that 2026 might be a more realistic target for the company to go public.

 

How to Buy Anduril Stock

Although Anduril stock isn’t available to the general public yet, accredited investors might have the chance to purchase shares before the IPO. Platforms like Forge Global allow accredited investors to buy into privately held companies like Anduril.

For those not qualifying as accredited investors, consider investing in publicly traded companies with similar business models to Anduril.

 

Steps to Invest in Anduril-like Stocks

1. Open a Brokerage Account To start investing in stocks, you need a brokerage account. Choose a brokerage with favorable terms, like Fidelity, which offers zero-commission online stock trades.
2. Set Your Budget Determine your investment budget by evaluating your monthly expenses, long-term goals, and financial priorities. Investing should be approached with a long-term perspective, so don’t feel pressured to invest heavily at the outset.
3. Research Your Options Thorough research is key to successful investing. Although Anduril stock isn’t currently available, consider investing in companies with similar profiles:
   • Lockheed Martin (LMT): With a market cap exceeding $108 billion, Lockheed Martin is a major player in the defense sector, manufacturing aircraft and other defense hardware. The company also integrates AI into its operations, such as the C2BMC system funded by the U.S. government.
   • Northrop Grumman (NOC): This defense contractor specializes in land, air, and sea assets, and is involved in cyberwarfare. Northrop Grumman is working on AI projects like the TITAN ground system in collaboration with Palantir, and has developed an AI assistant for pilots.
   • Kratos Defense & Security Solutions (KTOS): Known for its drones and uncrewed systems, Kratos is partnering with Shield AI to develop AI pilots for its drones. This might be appealing if you’re interested in drone technology similar to Anduril’s offerings.
4. Place Your Order Once you’ve made your decisions, place your stock order. Choose between a market order, which buys shares immediately at the current price, or a limit order, which sets a price threshold for purchasing. The Motley Fool suggests a market order for immediate execution.

 

Is Anduril Profitable?

As a private entity, Anduril doesn’t disclose detailed financial reports. However, estimates from Sacra suggest that Anduril’s revenue reached $342 million in 2023, up from $236 million in 2022.

 

Should I Invest in Anduril Stock?

For now, ordinary investors cannot buy Anduril stock. When the company does go public, regulatory filings will provide insights into its financial health, helping investors make informed decisions.

ETFs with Exposure to Anduril

While you can’t invest in Anduril stock directly through ETFs, there are funds that offer exposure to similar sectors:

• SPDR S&P Kensho Future Security ETF (FITE): Focuses on defense and AI-related stocks. Its largest holdings include Broadcom and CrowdStrike, with a 0.45% expense ratio.
• ARK Autonomous Technology & Robotics ETF (ARKQ): Targets AI and robotics growth, including companies like Kratos Defense & Security Solutions. This ETF has a 0.75% expense ratio.
• iShares U.S. Aerospace & Defense ETF (ITA): Provides a conservative investment option with major holdings like RTX, Boeing, and Lockheed Martin, and a 0.40% expense ratio.

 

The Bottom Line on Anduril Stock

As global tensions persist, Anduril’s innovative defense solutions make it a notable company for future investment. While Anduril stock isn’t yet available, investors can explore alternatives in defense and AI sectors or consider ETFs with similar exposure.

 

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 FAQ on Investing in Anduril Stock

Is Anduril stock publicly traded?

No, Anduril is currently a privately held company and is not available for public trading.

 

When is Anduril planning to go public?

Anduril does not have a specific IPO date yet. Co-founder Palmer Luckey has suggested that 2026 might be a possible timeframe.

 

How can I buy Anduril stock before its IPO?

Accredited investors may buy Anduril shares through private investment platforms like Forge Global. Retail investors will need to wait until the company goes public.

 

What are some alternatives to Anduril stock?

Consider investing in publicly traded companies with similar focuses, such as Lockheed Martin, Northrop Grumman, and Kratos Defense & Security Solutions.

 

How do I start investing in defense stocks?

1. Open a brokerage account.
2. Set your investment budget.
3. Research and choose stocks or ETFs.
4. Place your stock order.

 

Is Anduril profitable?

Anduril’s financials are not publicly disclosed, but estimates suggest the company had $342 million in revenue in 2023.

 

Can I invest in ETFs related to Anduril?

Yes, consider ETFs like the SPDR S&P Kensho Future Security ETF, ARK Autonomous Technology & Robotics ETF, or iShares U.S. Aerospace & Defense ETF for similar exposure.