How Buying SpaceX Today Could 10X Your Investment
Yahoo Finance ·
The many opinions on Space Exploration Technologies ( SPCX +4.06% ) include this one: Rockets, artificial intelligence, internet access, and orbital data centers are an exciting combination! But that valuation? More than 100 times sales ! SpaceX is indeed expensive. The stock, as I write this on June 26, trades at roughly 103 times sales and 58 times book value . That means investors are paying about $103 for every $1 of annual revenue SpaceX generates, and about $58 for every $1 of net assets on the balance sheet. Those are extraordinarily rich multiples even for a company growing as quickly as SpaceX. The stock isn't just expensive; it's priced like a new Rolls-Royce. And if the history of blockbuster IPOs like Meta Platforms (then Facebook) and Rivian tells us anything about the near-term future of SpaceX, it's that enormous expectations can deflate a highly anticipated stock just as quickly as they can inflate one. I don't own shares of SpaceX , and I don't plan to buy any soon. That said, my risk tolerance isn't the same as others', and, with an open mind, I can envision a future in which SpaceX grows tenfold from today's seemingly outlandish valuation. Here's how.
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