{"id":764635,"date":"2026-06-27T23:19:35","date_gmt":"2026-06-27T23:19:35","guid":{"rendered":"https:\/\/www.newsbeep.com\/au\/764635\/"},"modified":"2026-06-27T23:19:35","modified_gmt":"2026-06-27T23:19:35","slug":"2-reasons-not-to-invest-in-spacex-and-what-to-buy-instead","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/au\/764635\/","title":{"rendered":"2 Reasons Not to Invest in SpaceX &#8212; and What to Buy Instead"},"content":{"rendered":"\n<p class=\"text text-block paragraph text-left neo-font-paragraph-xl-reg  yf-18d6y07\" style=\"text-decoration: none; font-style: normal; text-transform: none; text-align: inherit; font-variant-numeric: normal;\">Space Exploration Technologies (NASDAQ: SPCX) might be the hottest stock on Wall Street right now. It completed the largest IPO in history about two weeks ago and even briefly became the fifth-largest corporation on the market. Many investors are excited about SpaceX&#8217;s outlook, given its aggressive vision for a multiplanetary future, as well as its work in broadband internet services and artificial intelligence, the latter of which represents the largest addressable market worth tens of trillions of dollars, according to the company. However, there are good reasons to be skeptical of SpaceX right now. Let&#8217;s discuss two of them and consider an alternative investment strategy.  <\/p>\n<p>    <a href=\"https:\/\/s.yimg.com\/lo\/mysterio\/api\/461BAF42EEB822A88E3BFA72D811DF04BC8A69DE5443FC8C81987BA03A410922\/subgraphmysterio\/resizefit_w960;quality_80;format_webp\/https:%2F%2Fmedia.zenfs.com%2Fen%2Fmotleyfool.com%2F1f4ea0f2060aee6486c50cdbde3d2aac\" target=\"_blank\" rel=\"noopener noreferrer nofollow\"><img loading=\"lazy\" decoding=\"async\" src=\"data:image\/gif;base64,R0lGODlhAQABAIAAAAAAAP\/\/\/ywAAAAAAQABAAACAUwAOw==\" alt=\"SpaceX logo.\" height=\"640\" width=\"960\" class=\"yf-lglytj loader\"\/><\/a> Image source: The Motley Fool.           <\/p>\n<p class=\"text text-block paragraph text-left neo-font-paragraph-xl-reg  yf-18d6y07\" style=\"text-decoration: none; font-style: normal; text-transform: none; text-align: inherit; font-variant-numeric: normal;\">Missed Nvidia in 2009? This Rare Signal Is Flashing Again.\u00a0In 2009, a &#8220;Double Down&#8221; signal flashed for a little-known chipmaker called Nvidia.\u00a0For the first time in years, that same &#8220;Total Conviction&#8221; signal is flashing for a company 1\/100th the size of Nvidia.\u00a0<a href=\"https:\/\/api.fool.com\/infotron\/infotrack\/click?apikey=35527423-a535-4519-a07f-20014582e03e&amp;impression=ba7cb2bc-45f9-42ad-86b0-1b07311c1a01&amp;url=https%3A%2F%2Fwww.fool.com%2Fmms%2Fmark%2Fa-sa-dd-total-conviction%3Faid%3D11123%26source%3Disaediica0000074%26ftm_cam%3Dsa-dd-4%26ftm_veh%3Dtop_incontent_pitch_feed_yahoo%26ftm_pit%3D19375&amp;utm_source=yahoo-host-full&amp;utm_medium=feed&amp;utm_campaign=article&amp;referring_guid=dbec860e-d422-4b28-910c-a01cc7e1460c\" data-ylk=\"slk:Continue%20%C2%BB;elm:context_link;itc:0;sec:content-canvas\" data-yga=\"{&quot;yLinkText&quot;:&quot;Continue \u00bb&quot;,&quot;yLinkElement&quot;:&quot;context_link&quot;,&quot;yModuleName&quot;:&quot;content-canvas&quot;}\" target=\"_blank\" rel=\"noopener noreferrer nofollow\">Continue \u00bb<\/a>  <\/p>\n<p>        1. The valuation is hard to justify          <\/p>\n<p class=\"text text-block paragraph text-left neo-font-paragraph-xl-reg  yf-18d6y07\" style=\"text-decoration: none; font-style: normal; text-transform: none; text-align: inherit; font-variant-numeric: normal;\">SpaceX&#8217;s stock has declined over the past few days, but the company is still worth about $2 trillion. It&#8217;s not too hard to understand why: If SpaceX can make significant headway into its addressable opportunities &#8212; and is actually right about the size of the markets it is tapping into &#8212; it could deliver impressive returns. The only problem is that, for now, SpaceX&#8217;s financial results hardly justify its market value. In 2025, the company posted revenue of $18.7 billion, up 33% year over year. It also recorded a net loss of $4.9 billion, far worse than the $791 million in net income it reported in 2024. SpaceX significantly trails other <a href=\"https:\/\/www.fool.com\/investing\/stock-market\/market-sectors\/information-technology\/?utm_source=yahoo-host-full&amp;utm_medium=feed&amp;utm_campaign=article&amp;referring_guid=dbec860e-d422-4b28-910c-a01cc7e1460c\" data-ylk=\"slk:tech%20leaders;elm:context_link;itc:0;sec:content-canvas\" data-yga=\"{&quot;yLinkText&quot;:&quot;tech leaders&quot;,&quot;yLinkElement&quot;:&quot;context_link&quot;,&quot;yModuleName&quot;:&quot;content-canvas&quot;}\" target=\"_blank\" rel=\"noopener noreferrer nofollow\">tech leaders<\/a> with a market cap of $2 trillion or more in both categories.  <\/p>\n<p>    <a href=\"https:\/\/ycharts.com\/companies\/NVDA\/chart\/\" target=\"_blank\" rel=\"noopener noreferrer nofollow\"><img loading=\"lazy\" decoding=\"async\" src=\"data:image\/gif;base64,R0lGODlhAQABAIAAAAAAAP\/\/\/ywAAAAAAQABAAACAUwAOw==\" alt=\"NVDA Revenue (Annual) Chart\" height=\"678\" width=\"720\" class=\"yf-lglytj loader\"\/><\/a>          <\/p>\n<p class=\"text text-block paragraph text-left neo-font-paragraph-xl-reg  yf-18d6y07\" style=\"text-decoration: none; font-style: normal; text-transform: none; text-align: inherit; font-variant-numeric: normal;\"><a href=\"https:\/\/ycharts.com\/companies\/NVDA\/revenues_annual\" data-ylk=\"slk:NVDA%20Revenue%20(Annual);elm:context_link;itc:0;sec:content-canvas\" data-yga=\"{&quot;yLinkText&quot;:&quot;NVDA Revenue (Annual)&quot;,&quot;yLinkElement&quot;:&quot;context_link&quot;,&quot;yModuleName&quot;:&quot;content-canvas&quot;}\" target=\"_blank\" rel=\"noopener noreferrer nofollow\">NVDA Revenue (Annual)<\/a> data by <a href=\"https:\/\/ycharts.com\" data-ylk=\"slk:YCharts;elm:context_link;itc:0;sec:content-canvas\" data-yga=\"{&quot;yLinkText&quot;:&quot;YCharts&quot;,&quot;yLinkElement&quot;:&quot;context_link&quot;,&quot;yModuleName&quot;:&quot;content-canvas&quot;}\" target=\"_blank\" rel=\"noopener noreferrer nofollow\">YCharts<\/a>  <\/p>\n<p class=\"text text-block paragraph text-left neo-font-paragraph-xl-reg  yf-18d6y07\" style=\"text-decoration: none; font-style: normal; text-transform: none; text-align: inherit; font-variant-numeric: normal;\">Further, some of them are also tapping into the massive AI market SpaceX is targeting, so it&#8217;s not like the company will have an unobstructed path to the top of this industry. In short, even if SpaceX&#8217;s ventures look somewhat promising, at its current levels, it could be a wealth destroyer &#8212; rather than a wealth compounder &#8212; over the next few years.  <\/p>\n<p>            2. It is exposed to significant political risk           <\/p>\n<p class=\"text text-block paragraph text-left neo-font-paragraph-xl-reg  yf-18d6y07\" style=\"text-decoration: none; font-style: normal; text-transform: none; text-align: inherit; font-variant-numeric: normal;\">SpaceX does a lot of business with the U.S. federal government, which accounted for about 20% of the company&#8217;s revenue last year. On the one hand, that grants the company a predictable source of revenue. However, it also creates potential problems for SpaceX. New administrations can shift priorities and reduce budgets typically dedicated to space travel, which would harm the company&#8217;s business. This risk is especially pronounced considering <a href=\"https:\/\/www.fool.com\/investing\/how-to-invest\/famous-investors\/elon-musk-investments\/?utm_source=yahoo-host-full&amp;utm_medium=feed&amp;utm_campaign=article&amp;referring_guid=dbec860e-d422-4b28-910c-a01cc7e1460c\" data-ylk=\"slk:Elon%20Musk;elm:context_link;itc:0;sec:content-canvas\" data-yga=\"{&quot;yLinkText&quot;:&quot;Elon Musk&quot;,&quot;yLinkElement&quot;:&quot;context_link&quot;,&quot;yModuleName&quot;:&quot;content-canvas&quot;}\" target=\"_blank\" rel=\"noopener noreferrer nofollow\">Elon Musk<\/a>, a rather divisive political figure, is the CEO of SpaceX. The company is benefiting from government contracts now, but that could change quickly, which is another reason to be skeptical of SpaceX&#8217;s prospects.  <\/p>\n<p>         Here&#8217;s what to buy instead         <\/p>\n<p class=\"text text-block paragraph text-left neo-font-paragraph-xl-reg  yf-18d6y07\" style=\"text-decoration: none; font-style: normal; text-transform: none; text-align: inherit; font-variant-numeric: normal;\">There are safer ways to invest in the space economy than buying shares of SpaceX. For instance, it&#8217;s worth considering the Procure Space ETF or the Tema Space Innovators ETF, both of which provide exposure to leading companies in the space industry, including SpaceX. So, these ETFs can help investors capitalize on the growing space industry while reducing the significant risk associated with SpaceX.  <\/p>\n<p>          Should you buy stock in Space Exploration Technologies right now?         <\/p>\n<p class=\"text text-block paragraph text-left neo-font-paragraph-xl-reg  yf-18d6y07\" style=\"text-decoration: none; font-style: normal; text-transform: none; text-align: inherit; font-variant-numeric: normal;\">Before you buy stock in\u00a0Space Exploration Technologies, consider this:  <\/p>\n<p class=\"text text-block paragraph text-left neo-font-paragraph-xl-reg  yf-18d6y07\" style=\"text-decoration: none; font-style: normal; text-transform: none; text-align: inherit; font-variant-numeric: normal;\">The Motley Fool\u00a0Stock Advisor\u00a0analyst team just identified what they believe are the\u00a0<a href=\"https:\/\/api.fool.com\/infotron\/infotrack\/click?apikey=35527423-a535-4519-a07f-20014582e03e&amp;impression=9b69bb58-9fd1-4a31-b309-e99d6943ef0d&amp;url=https%3A%2F%2Fwww.fool.com%2Fmms%2Fmark%2Fe-sa-bbn-bn%3Faid%3D8867%26source%3Disaeditxt0001213%26ftm_cam%3Dsa-bbn-evergreen%26ftm_veh%3Darticle_pitch_feed_yahoo%26ftm_pit%3D19383&amp;utm_source=yahoo-host-full&amp;utm_medium=feed&amp;utm_campaign=article&amp;referring_guid=dbec860e-d422-4b28-910c-a01cc7e1460c\" data-ylk=\"slk:10%20best%20stocks;elm:context_link;itc:0;sec:content-canvas\" data-yga=\"{&quot;yLinkText&quot;:&quot;10 best stocks&quot;,&quot;yLinkElement&quot;:&quot;context_link&quot;,&quot;yModuleName&quot;:&quot;content-canvas&quot;}\" target=\"_blank\" rel=\"noopener noreferrer nofollow\">10 best stocks<\/a>\u00a0for investors to buy now\u2026 and\u00a0Space Exploration Technologies\u00a0wasn&#8217;t 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<p class=\"text text-block paragraph text-left neo-font-paragraph-xl-reg  yf-18d6y07\" style=\"text-decoration: none; font-style: normal; text-transform: none; text-align: inherit; font-variant-numeric: normal;\">Consider when\u00a0Netflix\u00a0made this list on December 17, 2004&#8230; if you invested $1,000 at the time of our recommendation,\u00a0you&#8217;d have $382,359!*\u00a0Or\u00a0when\u00a0Nvidia\u00a0made this list on April 15, 2005&#8230; if you invested $1,000 at the time of our recommendation,\u00a0you&#8217;d have $1,201,390!*  <\/p>\n<p class=\"text text-block paragraph text-left neo-font-paragraph-xl-reg  yf-18d6y07\" style=\"text-decoration: none; font-style: normal; text-transform: none; text-align: inherit; font-variant-numeric: normal;\">That performance is why people listen. With a track record of\u00a0beating the S&amp;P 500 by 4x,\u00a0Stock Advisor\u00a0offers a distinct advantage. Don&#8217;t miss the latest top 10 list, available with\u00a0Stock Advisor, and join an investing community built for the long haul.  <\/p>\n<p class=\"text text-block paragraph text-left neo-font-paragraph-xl-reg  yf-18d6y07\" style=\"text-decoration: none; font-style: normal; text-transform: none; text-align: inherit; font-variant-numeric: normal;\"><a href=\"https:\/\/api.fool.com\/infotron\/infotrack\/click?apikey=35527423-a535-4519-a07f-20014582e03e&amp;impression=9b69bb58-9fd1-4a31-b309-e99d6943ef0d&amp;url=https%3A%2F%2Fwww.fool.com%2Fmms%2Fmark%2Fe-sa-bbn-bn%3Faid%3D8867%26source%3Disaeditxt0001213%26ftm_cam%3Dsa-bbn-evergreen%26ftm_pit%3D19383%26ftm_veh%3Darticle_pitch_feed_yahoo%26company%3DSpace%2520Exploration%2520Technologies&amp;utm_source=yahoo-host-full&amp;utm_medium=feed&amp;utm_campaign=article&amp;referring_guid=dbec860e-d422-4b28-910c-a01cc7e1460c\" data-ylk=\"slk:See%20the%2010%20stocks%20%C2%BB;elm:context_link;itc:0;sec:content-canvas\" data-yga=\"{&quot;yLinkText&quot;:&quot;See the 10 stocks \u00bb&quot;,&quot;yLinkElement&quot;:&quot;context_link&quot;,&quot;yModuleName&quot;:&quot;content-canvas&quot;}\" target=\"_blank\" rel=\"noopener noreferrer nofollow\" class=\"ticker_pitch\">See the 10 stocks \u00bb<\/a>  <\/p>\n<p class=\"text text-block paragraph text-left neo-font-paragraph-xl-reg  yf-18d6y07\" style=\"text-decoration: none; font-style: normal; text-transform: none; text-align: inherit; font-variant-numeric: normal;\">*Stock Advisor returns as of June 27, 2026.  <\/p>\n<p class=\"text text-block paragraph text-left neo-font-paragraph-xl-reg  yf-18d6y07\" style=\"text-decoration: none; font-style: normal; text-transform: none; text-align: inherit; font-variant-numeric: normal;\"><a href=\"https:\/\/www.fool.com\/author\/20111\/\" data-ylk=\"slk:Prosper%20Junior%20Bakiny;elm:context_link;itc:0;sec:content-canvas\" data-yga=\"{&quot;yLinkText&quot;:&quot;Prosper Junior Bakiny&quot;,&quot;yLinkElement&quot;:&quot;context_link&quot;,&quot;yModuleName&quot;:&quot;content-canvas&quot;}\" target=\"_blank\" rel=\"noopener noreferrer nofollow\">Prosper Junior Bakiny<\/a> has positions in Alphabet, Amazon, and Nvidia. The Motley Fool has positions in and recommends Alphabet, Amazon, Apple, Microsoft, and Nvidia. The Motley Fool has a <a href=\"https:\/\/www.fool.com\/legal\/fool-disclosure-policy\/\" data-ylk=\"slk:disclosure%20policy;elm:context_link;itc:0;sec:content-canvas\" data-yga=\"{&quot;yLinkText&quot;:&quot;disclosure policy&quot;,&quot;yLinkElement&quot;:&quot;context_link&quot;,&quot;yModuleName&quot;:&quot;content-canvas&quot;}\" target=\"_blank\" rel=\"noopener noreferrer nofollow\">disclosure policy<\/a>.  <\/p>\n<p class=\"text text-block paragraph text-left neo-font-paragraph-xl-reg  yf-18d6y07\" style=\"text-decoration: none; font-style: normal; text-transform: none; text-align: inherit; font-variant-numeric: normal;\"><a href=\"https:\/\/www.fool.com\/investing\/2026\/06\/27\/2-reasons-not-to-invest-in-spacex-and-what-to-buy\/\" data-ylk=\"slk:2%20Reasons%20Not%20to%20Invest%20in%20SpaceX%20--%20and%20What%20to%20Buy%20Instead;elm:context_link;itc:0;sec:content-canvas\" data-yga=\"{&quot;yLinkText&quot;:&quot;2 Reasons Not to Invest in SpaceX -- and What to Buy Instead&quot;,&quot;yLinkElement&quot;:&quot;context_link&quot;,&quot;yModuleName&quot;:&quot;content-canvas&quot;}\" target=\"_blank\" rel=\"noopener noreferrer nofollow\">2 Reasons Not to Invest in SpaceX &#8212; and What to Buy Instead<\/a> was originally published by The Motley Fool  <\/p>\n","protected":false},"excerpt":{"rendered":"Space Exploration Technologies (NASDAQ: SPCX) might be the hottest stock on Wall Street right now. It completed the&hellip;\n","protected":false},"author":2,"featured_media":764636,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[23],"tags":[64,63,128,285,357178],"class_list":["post-764635","post","type-post","status-publish","format-standard","has-post-thumbnail","category-space","tag-au","tag-australia","tag-science","tag-space","tag-space-exploration-technologies"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts\/764635","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/comments?post=764635"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts\/764635\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/media\/764636"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/media?parent=764635"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/categories?post=764635"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/tags?post=764635"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}