Bill Ackman Says "Never Bet Against Elon," Even as He Passes on SpaceX Stock. Here's Why He's Staying Out.
2026-08-03 15:15
•Lyle Daly •The Motley Fool
••••• • Axe Cap view
Why Bill Ackman Is Steering Clear of SpaceX Stock
Ackman admires Elon Musk's SpaceX but avoids the stock due to valuation and business complexity concerns.
Bill Ackman’s take on SpaceX is a rare mix of respect and caution. He acknowledges Starlink’s near-monopoly in satellite internet and its move into profitability—a huge deal in an otherwise capital-heavy and unpredictable space business. But the stock’s sky-high valuation, at around 75 times sales, makes him wary. SpaceX's mix of ventures—from money-burning AI projects to expensive rockets—doesn’t fit cleanly into Ackman’s playbook that favours clarity and consistent cash flow. Local investors should note there isn’t a neat parallel on the JSE; the rand, for example, might be impacted by broader tech trends but doesn’t move tight with SpaceX’s fortunes. This calls for patience and focus on companies with more transparent earnings, like Standard Bank or MTN, while keeping an eye on USD/ZAR for wider risk appetite signals. The bet here is quality with discipline, not chasing hype. this is just our opinion and not financial advice
Avoid investing in SpaceX stock due to its stretched valuation and unpredictable business lines. Focus on South African names with clearer earnings like Standard Bank and MTN while watching USD/ZAR to gauge risk sentiment.
- USD/ZAR
- Standard Bank
- MTN
- SpaceX valuation might justify future growth
- Rand volatility from global tech sentiment shifts
6/10
Billionaire investor Bill Ackman praised Elon Musk and SpaceX's business fundamentals, particularly highlighting Starlink's profitability and near-monopoly on satellite internet. However, Ackman is avoiding SpaceX stock due to its high valuation (75x sales) and lack of predictability across its mixed business segments. He cited the company's capital-intensive rocket business, profitable Starlink division, and money-losing AI operations as factors making it unsuitable for his investment criteria.
Our take is based on reporting first published by The Motley Fool.