Space exploration technologies (NASDAQ: SPCX) became a public company on June 12, initially rising after its initial public offering (IPO), but now the stock is about 19% below its high.
Some investors might be wondering if now is a good time to buy shares or if they should wait for a more attractive entry point since SpaceX stock went public at a high valuation. So is now the right time to dive in?
Did Nvidia miss out in 2009? This rare signal flashes again. In 2009, a “double down” signal appeared for a little-known chipmaker called Nvidia. For the first time in years, that same “Total Conviction” signal is flashing for a company that is 1/100th the size of Nvidia. Continue “
SpaceX is the future
SpaceX had an unprecedented and unparalleled initial public offering, selling more than $86 billion worth of shares. For reference, the previous record holder was Saudi Aramco, which raised $26.6 billion in 2019.
Fans believe that SpaceX offers technology that will be relevant in the future and if it happens, they will win big. Elon Musk and his team have taken people to space and SpaceX is the largest rocket launch company in the world, with 650 launches to date. He has figured out how to make launchers reusable and is on a mission to make space travel accessible to humans.
But the space segment is growing slowly and is not yet profitable. It posted an operating loss of $657 million on $4.1 billion in revenue last year, with revenue up 7.6%.
Satellite broadband is another area where it is a leader and where the consequences could be far-reaching. It has 9,600 satellites in orbit and serves 10.3 million customers in 164 countries. It offers broadband in rural areas and other places where standard internet providers don’t reach, and the business is booming, with $1.2 billion in operating income on $3.3 billion in revenue in the first quarter of 2026.
The artificial intelligence (AI) business could be less interesting for investors. The AI segment, xAI, merged with SpaceX earlier this year. However, this is where the company is investing today and where it sees its biggest opportunities.
Is SpaceX Stock a Dip Buy?
Elon Musk has created other companies, such as teslathat have truly changed the world, and SpaceX fans are betting it can do it again.
However, there are some problems with SpaceX’s thesis. One is that, although it is now at the top, it faces competition and doesn’t necessarily have the economic moat to stay there. Another is your appreciation. Even at this lower price, it trades at a whopping valuation of 111 times trailing 12-month sales. That’s not a bargain.
