Prediction: This Artificial Intelligence (AI) Stock Will Be Worth More than SpaceX Before 2026 is Over
2026-08-25 01:15
•Keithen Drury •The Motley Fool
••••• •• Axe Cap view
Meta’s AI Edge Could Outpace SpaceX by 2026
Meta trades at a modest earnings multiple while SpaceX sports a lofty sales valuation — that gap looks set to close.
Meta Platforms is quietly emerging as one of the most compelling AI plays on the table. Unlike SpaceX, which remains prized for potential and hype despite no profits, Meta backs its valuation with actual earnings—$15.8 billion in quarterly profit is no joke. Trading at just 17.5 times forward earnings, Meta’s shares suggest the market hasn’t fully priced in how AI could turbocharge its advertising and new business lines. SpaceX’s 40 times sales valuation might appeal to dreamers, but the lack of profitability and a crowded cap table could trigger corrections once lockup periods end. For South African investors, this means watching USD/ZAR closely since any shifts in US tech valuations ripple through our currency. Local tech exposure via Prosus or Naspers remains compelling but keep an eye on regulatory and global growth risks. The bull case for Meta is intact, but if AI hype fades or regulatory pressure mounts, profits may fall short and valuations could reset. this is just our opinion and not financial advice
I would watch Meta closely, considering a position on dips while keeping risk tight. Avoid chasing SpaceX’s current private valuation multiples from the sidelines for now.
- META
- USD/ZAR
- Prosus
- Slower than expected AI monetization impacting Meta’s profits
- US regulatory crackdown on big tech
- SpaceX’s valuation holding firm due to investor appetite for tech disruption
6/10
The article argues that Meta Platforms will likely surpass SpaceX in valuation by the end of 2026. Meta currently trades at a low 17.5x forward earnings compared to the S&P 500's 21.4x, while SpaceX is valued at nearly 40x sales despite generating no net income. Meta's $15.8 billion quarterly profit dwarfs SpaceX's $7.8 billion revenue, suggesting Meta's valuation is more justified and has room to grow.
Our take is based on reporting first published by The Motley Fool.