![\"Young](\"https:\/\/www.newsbeep.com\/ie\/wp-content\/uploads\/2026\/06\/c89bc3f9b678038f57d9b6937a7ac2cc.jpeg\")
Image source: Getty Images <\/p>\n Image source: Getty Images <\/p>\n
I didn\u2019t buy shares in Space Exploration Technologies (NASDAQ: SPCX), better known as SpaceX. People have been asking me if I did, though, while at the same time telling me they think the valuation is insane.<\/p>\n
There was no way I was going to stump up cash at IPO for a company that\u2019s been so astonishingly hyped and isn\u2019t making any profit. SpaceX has lost $41.3bn since it was founded \u2014 and its AI business is burning through cash like it was rocket fuel.<\/p>\n
So what happened? <\/p>\n
Of course, the stock soared 19% from its $135 offer price to close Friday at $160.95.<\/p>\n
But I don\u2019t mind missing out. In fact, I\u2019m sure the fear of missing out (FOMO) lay behind many people rushing to oversubscribe the offering. Retail investors put in orders for $100bn \u2014 though what they got will depend on individual allocations. Even UK investors piled in to the tune of $364m.<\/p>\n
You know what history teaches us about massively-hyped IPOs that climb on their first day? They have a tendency to lose their gains, and often a lot more, in the coming quarters. History doesn\u2019t account for Elon Musk, mind.<\/p>\n
What\u2019s it really worth? <\/p>\n
I won\u2019t attempt to work out where I think the true valuation should lie. That\u2019s mainly because I have no idea how to value Musk\u2019s brain. He does, however, appear to be a worthy successor to the late Apple founder Steve Jobs and his so-called reality distortion field.<\/p>\n
Here\u2019s a couple of common valuation measures that I reckon only the Musk factor could justify. I\u2019m comparing price-to-earnings (P\/E) and price-to-sales (P\/S) ratios of SpaceX and Tesla, with the four biggest Mag 7 companies\u2026<\/p>\n
Company<\/p>\n
Market cap<\/p>\n
P\/S<\/p>\n
Historic P\/E<\/p>\n
Forecast P\/E<\/p>\n
SpaceX<\/p>\n
$2.11trn<\/p>\n
109<\/p>\n
n\/a<\/p>\n
n\/a<\/p>\n
Tesla<\/p>\n
$1.53trn<\/p>\n
14.7<\/p>\n
373<\/p>\n
196<\/p>\n
Nvidia<\/p>\n
$4.97trn<\/p>\n
19.8<\/p>\n
31.4<\/p>\n
23.4<\/p>\n
Alphabet<\/p>\n
$4.37trn<\/p>\n
10.4<\/p>\n
27.3<\/p>\n
25.4<\/p>\n
Apple<\/p>\n
$4.28trn<\/p>\n
9.6<\/p>\n
35.3<\/p>\n
30.6<\/p>\n
Microsoft<\/p>\n
$2.90trn<\/p>\n
9.2<\/p>\n
23.3<\/p>\n
20.1<\/p>\n
That P\/S for SpaceX is about nine times the average for the four non-Musk stocks. And tech stocks tend to be valued higher anyway \u2014 the average P\/S for the S&P 500 is about three.<\/p>\n
Tesla\u2019s P\/S appears a bit more down to earth, relatively. But electric vehicle sales haven\u2019t been sparkling. And just look at those enormous P\/E valuations.<\/p>\n
But might it just\u2026? <\/p>\n
In a message on X on Sunday, Musk said he believes SpaceX could bring in $1trn in revenue by 2030. And he added: \u201cI would be surprised if revenue is not greater than $1T in 2031.\u201d That\u2019s more than 50 times 2025 revenue.<\/p>\n
But if it comes off, it could drop that astronomical P\/S ratio to only a bit over two. And that could make the stock screaming cheap. So while I don\u2019t like the valuation today, we could be looking at a seriously profitable AI-in-space company in the years ahead.<\/p>\n
A decade from now, I really might be looking at a missed opportunity. But I think I see a fair chance of better opportunities at lower prices in the future. I\u2019ll keep resisting the FOMO.<\/p>\n
Should you invest \u00a35,000 in Space Exploration Technologies Corp. – Class A right now? <\/p>\n
When investing expert Mark Rogers and his team have a stock tip, it can pay to listen. After all, the flagship Twelfth Magpie Share Advisor newsletter he has run for nearly a decade has provided thousands of paying members with top stock recommendations from the UK and US markets.<\/p>\n
And right now, Mark thinks there are 6 standout stocks that investors should consider buying. Want to see if Space Exploration Technologies Corp. – Class A made the list?<\/p>\n
See The Six Stocks<\/p>\n
Alan Oscroft does not hold any positions in the companies mentioned.<\/p>\n
The post Here\u2019s why I\u2019m not kicking myself for not buying SpaceX<\/a> appeared first on The Twelfth Magpie<\/a>.<\/p>\n More reading<\/p>\n Motley Fool UK 2026<\/p>\n","protected":false},"excerpt":{"rendered":"Image source: Getty Images I didn\u2019t buy shares in Space Exploration Technologies (NASDAQ: SPCX), better known as SpaceX.…\n","protected":false},"author":2,"featured_media":501127,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[23],"tags":[605,61,60,82,247,73335],"class_list":["post-501126","post","type-post","status-publish","format-standard","has-post-thumbnail","category-space","tag-elon-musk","tag-ie","tag-ireland","tag-science","tag-space","tag-space-exploration-technologies"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/posts\/501126","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/comments?post=501126"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/posts\/501126\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/media\/501127"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/media?parent=501126"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/categories?post=501126"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/tags?post=501126"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}