SpaceX Trades at 98 Times Sales. Here's What Amazon's Multiple Looked Like at the Same Stage.
Yahoo Finance ·
Many investors are ignoring a flashing warning sign when analyzing Space Exploration Technologies ( SPCX +0.43% ) . The rocket flight and artificial intelligence ( AI ) company helmed by Elon Musk now trades at a market cap of $2.1 trillion and a price-to-sales ratio ( P/S ) of 98. Some growth investors are making comparisons to Amazon ( AMZN -0.20% ) during the dot-com bubble. Shares of Amazon looked expensive at the peak, but if you held through the decades, they eventually delivered great performance for investors who bought in at those levels. This is not an apples-to-apples comparison. Today, SpaceX generates $23 billion in trailing revenue. What did Amazon trade at with a similar revenue size? When you learn the answer, it will make you think twice about buying SpaceX stock today.
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