So now, you may be wondering whether you should invest in SpaceX or the members of the “Magnificent Seven.” Let’s check out which is a better option. <\/p>\n
SpaceX soared right out of the gate as investors got excited about the company’s growth businesses of rocket launches, connectivity, and AI. And some investors also liked that this is a company led by Elon Musk<\/a>, known for his focus on game-changing innovations. <\/p>\n The company has made progress in a variety of areas in recent years. For example, it’s greatly brought down the cost of rocket launches thanks to its work on reusable rockets. And SpaceX has seen the popularity of its Starlink internet service surge, with subscribers rising from 2.3 million to 10 million over just three years. All of this helped SpaceX deliver $18 billion in revenue last year, for a 33% gain. <\/p>\n The company has big goals, such as the development of data centers in space, and investors know that if SpaceX reaches certain milestones, earnings and stock performance could skyrocket. All of this helped propel the stock price higher during SpaceX’s first days of trading, but in recent days, the stock has pulled back. In fact, SpaceX is trading lower than its debut price of $150, and some may consider this a buying opportunity. <\/p>\n The case for the “Magnificent Seven” <\/p>\n The “Magnificent Seven” stocks are as follows: Amazon (NASDAQ: AMZN), Apple (NASDAQ: AAPL), Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL), Meta Platforms (NASDAQ: META), Nvidia (NASDAQ: NVDA), Microsoft (NASDAQ: MSFT), and Tesla (NASDAQ: TSLA). <\/p>\n Story Continues <\/p>\n These players are leaders in a wide range of tech specialties, from e-commerce<\/a> to chips and software, and they are all involved to some degree in the high-growth industry of AI. These companies have delivered earnings growth over time, and their earnings prospects are generally bright. <\/p>\n So, “Magnificent Seven” companies are on track to deliver growth from their core businesses, and on top of this, they are well-positioned to benefit from AI over time. Nvidia is the only one of the bunch that depends more heavily on AI, with more than 90% of revenue coming from its data center business. But it’s important to note that Nvidia is broadening the use of AI across industries, which also expands its revenue opportunities. <\/p>\n Though Tesla continues to trade at a high valuation and Apple has seen its valuation climb over the past year, the other five tech giants trade for less than 29x forward earnings estimates and look very interesting at these levels. <\/p>\n So, should you put your money into SpaceX or diversify across the “Magnificent Seven”? Even though SpaceX stock has declined in recent times, it still looks pricey considering the risk that comes along with this investment. Many of SpaceX’s goals involve the development of technology that hasn’t yet been fully proven — and to develop technology and advance its programs, SpaceX must heavily invest. Last year, capital expenditures drove the company to a net loss of $4.9 billion. <\/p>\n Meanwhile, an investment spread across the “Magnificent Seven” — and here I would go for the five cheapest according to valuation, as shown in the chart above — could be great for three reasons. First, these particular stocks are trading at bargain levels. Second, they are proven winners with a long track record of growth, and they are well placed to benefit from AI now and into the future. Finally, by spreading your money across several stocks, you offer your portfolio diversification. <\/p>\n All of this makes the “Magnificent Seven” a better buy than SpaceX right now — for safety and growth. <\/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’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 Consider when\u00a0Netflix\u00a0made this list on December 17, 2004… if you invested $1,000 at the time of our recommendation,\u00a0you’d have $396,542!*\u00a0Or\u00a0when\u00a0Nvidia\u00a0made this list on April 15, 2005… if you invested $1,000 at the time of our recommendation,\u00a0you’d have $1,299,961!* <\/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 July 16, 2026. <\/p>\n Adria Cimino<\/a> has positions in Amazon and Tesla. The Motley Fool has positions in and recommends Alphabet, Amazon, Apple, Meta Platforms, Microsoft, Nvidia, and Tesla. The Motley Fool has a disclosure policy<\/a>. <\/p>\n<\/a> Image source: Getty Images. The case for SpaceX <\/p>\n
<\/a> GOOG PE Ratio (Forward)<\/a> data by YCharts<\/a> SpaceX or the “Magnificent Seven”? <\/p>\n