SpaceX Is Down Nearly 50% From Its All-Time High -- That's Great News for Long-Term Investors
2026-07-30 20:05
•Steven Porrello •The Motley Fool
• ••••• Axe Cap view
SpaceX’s Valuation Drop: A Cautious Look for South African Investors
SpaceX’s 50% decline looks tempting but remains expensive for those seeking value.
SpaceX’s sharp fall from $225 to about $112 might catch some eyes given the $1.5 trillion valuation that still looms large. For local investors on the JSE, the direct buy isn’t straightforward—SpaceX isn’t listed here, so the move you’ll watch is the impact on USD/ZAR. A weaker rand can partly reflect risk-off sentiment in global tech stocks. Given SpaceX’s dependence on future tech wins and vast ambitions, the valuation still feels stretched. This isn’t the kind of stock to rush into, especially for those who prefer tangible profits and lower volatility like South African banks or miners. Yet, if the USD/ZAR were to weaken as global tech stabilizes, domestic heavyweights like Naspers and Prosus could ease pressure and offer better entry points. The risk is that SpaceX’s hype-driven valuation remains justified by breakthroughs or new contracts, keeping the stock pricey longer than expected. this is just our opinion and not financial advice
Wait to see if USD/ZAR stabilizes or weakens before buying growth-linked stocks like Naspers and Prosus. Avoid jumping into unlisted tech with frothy valuations until fundamentals improve.
- USD/ZAR
- Naspers
- Prosus
- SpaceX valuation supported by breakthrough technology
- Rand volatility driven by global risk sentiment
6/10
SpaceX stock has fallen 50% from its all-time high of $225 to $112.20, shedding $1.2 trillion in market value. While the company still carries a $1.5 trillion valuation that appears expensive by traditional metrics, the declining price makes it a more attractive long-term opportunity. However, the author recommends waiting for even more reasonable valuations before investing, as the stock's current price still depends heavily on ambitious future visions rather than current business fundamentals.
Our take is based on reporting first published by The Motley Fool.