{"id":484969,"date":"2026-06-19T06:02:18","date_gmt":"2026-06-19T06:02:18","guid":{"rendered":"https:\/\/www.newsbeep.com\/nz\/484969\/"},"modified":"2026-06-19T06:02:18","modified_gmt":"2026-06-19T06:02:18","slug":"the-case-for-and-against-buying-spacex-right-now-2","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/nz\/484969\/","title":{"rendered":"The Case for and Against Buying SpaceX Right Now"},"content":{"rendered":"

The ability to calculate wisely in the midst of strong emotions — fear, greed, excitement, worry — is one of the hallmark habits of a seasoned investor. To look for the real company beneath the public face, the core of its operations beneath promises, the essential nature of the business — this kind of clear-eyed analysis, more than anything else, is what’s needed in a market as richly valued as it is in 2026.<\/p>\n

This is as true for small companies and start-ups as it is for members of the trillion-dollar club, like the newly minted Space Exploration Technologies\u00a0(SPCX<\/a> 3.55%). Now that the most highly anticipated IPO since Facebook (now Meta Platforms) is over, let’s look closely at SpaceX’s pros and cons.<\/p>\n

\"A<\/p>\n

Image source: Getty Images.<\/p>\n

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

\"Space<\/p>\n

Space Exploration Technologies<\/p>\n

Today’s Change<\/p>\n

(-3.55%) $-6.82<\/p>\n

Current Price<\/p>\n

$185.00<\/p>\n

Key Data Points<\/p>\n

Market Cap<\/p>\n

$2.4T<\/p>\n

Day’s Range<\/p>\n

$172.11 – $190.00<\/p>\n

52wk Range<\/p>\n

$149.34 – $225.64<\/p>\n

Volume<\/p>\n

272.1M<\/p>\n

Avg Vol<\/p>\n

314.9M<\/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<\/a> to come back down to Earth before buying.<\/p>\n","protected":false},"excerpt":{"rendered":"The ability to calculate wisely in the midst of strong emotions — fear, greed, excitement, worry — is…\n","protected":false},"author":2,"featured_media":484970,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[23],"tags":[111,139,69,147,392],"class_list":["post-484969","post","type-post","status-publish","format-standard","has-post-thumbnail","category-space","tag-new-zealand","tag-newzealand","tag-nz","tag-science","tag-space"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts\/484969","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/comments?post=484969"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts\/484969\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/media\/484970"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/media?parent=484969"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/categories?post=484969"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/tags?post=484969"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}