Is SpaceX Stock a Buy Right Now?
2026-10-25 15:31
•Lyle Daly •The Motley Fool
•••••• ••••• Axe Cap view
SpaceX: Too Hot to Touch for Now
SpaceX's soaring revenues and AI growth impress, but valuation and capex caution urge patience.
SpaceX posted eye-popping numbers with 161% revenue growth and a profitable swing, mainly driven by its AI segment and Starlink connectivity. The deal with Google, paying nearly $1 billion monthly, underlines serious demand for its AI infrastructure. But the stock trades at a stratospheric 67 times trailing sales—meaning most good news is already factored in. Plus, massive capital spending is expected to double next quarter, which could pressure cash flow and shares. For South African investors, the direct play is absent, so the USD/ZAR pair becomes the key lens. Should the rand weaken due to global risk-off tendencies amid tech sector jitters, the cost of offshore tech exposure rises, adding a local twist. The sensible move is to wait for a correction or pullback before jumping in. The risk? SpaceX could continue surprising with faster-than-expected growth or a new tech breakthrough that justifies the premium. this is just our opinion and not financial advice
Avoid buying SpaceX stock at these levels. Instead, monitor the USD/ZAR for fluctuations linked to offshore tech appetite and consider buying local defensive counters if the rand weakens.
- USD/ZAR
- SpaceX surprises with accelerated growth or tech breakthroughs
- Capital expenditure pressures dampen profits leading to a sell-off
6/10
SpaceX reported strong Q3 2026 earnings with 161% revenue growth to $14.6 billion and a swing to $4.4 billion net income. Its AI segment (Super Intelligence) grew 830% year-over-year to $7.6 billion, while connectivity revenue rose 69% to $5.2 billion. However, the stock trades at a premium valuation (67x trailing sales), with massive capex requirements potentially doubling in Q4. The analyst recommends waiting for better entry points rather than buying at current levels.
Our take is based on reporting first published by The Motley Fool.