![\"A](\"https:\/\/www.newsbeep.com\/au\/wp-content\/uploads\/2026\/06\/44ccffad25e8b22a339f4b56a3fac712.jpeg\")
Image source: Getty Images. The bull case: Rockets, AI, and the internet beamed from space <\/p>\n
SpaceX is essentially three businesses: space technology, connectivity, and artificial intelligence<\/a> (AI). This trinity of tech does not have equal parts, however, and it appears that the most profitable one is connectivity.<\/p>\n In 2025, the connectivity segment (driven mostly by Starlink) generated over $11 billion in revenue — roughly three-fifths of SpaceX’s total — and left the company with over $4 billion in operating income. Starlink currently has over 10 million subscribers across more than 160 countries, a number it claims will grow to 25 million by the end of 2026.<\/p>\n The other two businesses — space and AI — together generated just over $7 billion of revenue, underscoring the dominance of connectivity. Here’s another figure that stresses it: Between 2023 and 2025, total revenue grew at a compound annual growth rate (CAGR) of 34%. But connectivity? That segment grew at a whopping 71% CAGR.<\/p>\n Connectivity’s near-term total addressable market (TAM) — according to figures from SpaceX’s IPO roadshow — is $1.6 trillion, which was roughly the company’s opening valuation. Together with space and AI, SpaceX claims it can address an enormous $6 trillion market opportunity, about three times more than its current valuation.<\/p>\n The bear case: A remarkable company with a sky-high valuation <\/p>\n The bull case for SpaceX<\/a> is its potential to become deeply embedded in infrastructure, with all three businesses working together to make it the defining company of the century.<\/p>\n The bear case, however, centers on the company’s valuation. We are now entering SpaceX’s first full week on the market, and the stock is already trading at a steep price. At its current market capitalization of $2.1 trillion, SpaceX trades at 109 times sales and 61 times book value. For comparison, Nvidia, the biggest winner in the AI era thus far and the world’s most valuable company at $5 trillion, trades at about 20 times sales and 25 times book.<\/p>\n Another illuminating comparison: Nvidia’s fiscal 2026 revenue (roughly $216 billion) was over 11 times more than SpaceX’s 2025 revenue (about $19 billion).<\/p>\n That said, Elon Musk claims SpaceX could generate $1 trillion in revenue by 2030, a staggering leap from today’s figures. But if we’re going off what’s on paper, this trillion-dollar company is simply too pricey right now to call it a compelling buy. Patient investors may be better off waiting for this space stock to come back down to Earth before buying.<\/p>\n Should you buy stock in Space Exploration Technologies right now? <\/p>\n Before you buy stock in\u00a0Space Exploration Technologies, consider this:<\/p>\n The Motley Fool\u00a0Stock Advisor\u00a0analyst team just identified what they believe are the\u00a010 best stocks<\/a>\u00a0for investors to buy now\u2026 and\u00a0Space Exploration Technologies\u00a0wasn\u2019t one of them.\u00a0The 10 stocks that made the cut are built for long-term growth and could produce monster returns in the coming years.<\/p>\n Consider when\u00a0Netflix\u00a0made this list on December 17, 2004… if you invested $1,000 at the time of our recommendation,\u00a0you\u2019d have $415,040!*\u00a0Or\u00a0when\u00a0Nvidia\u00a0made this list on April 15, 2005… if you invested $1,000 at the time of our recommendation,\u00a0you\u2019d have $1,256,076!*<\/p>\n That performance is why people listen. With a track record of\u00a0beating the S&P 500 by 4x,\u00a0Stock Advisor\u00a0offers a distinct advantage. Don’t miss the latest top 10 list, available with\u00a0Stock Advisor, and join an investing community built for the long haul.<\/p>\n See the 10 stocks \u00bb<\/a><\/p>\n *Stock Advisor returns as of June 18, 2026. <\/p>\n Steven Porrello<\/a> has positions in Nvidia. The Motley Fool has positions in and recommends Meta Platforms and Nvidia. The Motley Fool has a disclosure policy<\/a>.<\/p>\n