Is SpaceX a Buy After Its Latest Quarterly Results?
2026-10-26 09:30
•Lawrence Nga •The Motley Fool
••••• • Axe Cap view
SpaceX's Stratospheric Growth: Wait for a Better Price
SpaceX’s recent profit jump impresses, but sky-high valuation and heavy spending argue against rushing in.
SpaceX’s Q3 numbers grabbed attention globally, with revenue doubling to $14.6 billion and net income at $4.4 billion. Its AI segment now out-earns Starlink, signalling the company’s tech depth. But from a South African investor’s lens, this doesn’t scream ‘buy’ yet. The $2 trillion valuation already bakes in aggressive growth and flawless execution, which is a big gamble. The $19.6 billion being poured into capital expenditure means they’re still spending heavily to get there. For those tracking USD/ZAR, SpaceX’s success might keep the dollar buoyant, pressuring the rand, especially if investors seek safer opportunities locally or in commodities. If the company stumbles—even slightly—expect earnings expectations and share price to cool off sharply. this is just our opinion and not financial advice
Watch SpaceX and the USD/ZAR closely, but do not buy now. Wait for a significant correction before considering entry to reduce valuation risk.
- SPCX
- USD/ZAR
- Valuation too rich despite strong earnings
- Heavy capex may delay cash generation
6/10
SpaceX reported exceptional Q3 results with revenue doubling to $14.6 billion and returning to profitability with $4.4 billion net income. Its AI business segment generated $7.56 billion in revenue, surpassing Starlink's $5.25 billion. However, the analyst cautions that while the business is strengthening, the $2 trillion valuation already prices in significant future growth. With $19.6 billion in capital expenditures, investors should wait for a more compelling entry price rather than chase the earnings rally, as strong business performance doesn't guarantee stock returns.
Our take is based on reporting first published by The Motley Fool.
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