SpaceX Just Posted Its First Profitable Quarter. Is Now the Time to Buy the Stock?
2026-10-24 13:46
•Keithen Drury •The Motley Fool
••••• • Axe Cap view
SpaceX’s First Profitable Quarter: Worth the Premium?
SpaceX’s record profit and sky-high valuation call for a cautious but patient approach.
SpaceX turning a profit is monumental, especially with Starlink ramping up and AI delivering explosive growth—830% year-on-year is no joke. Still, trading at 114 times earnings means the market is pricing in a future where everything goes right, from global broadband dominance to AI breakthroughs. For South African investors, the immediate play isn’t the stock itself—it’s the rand. If SpaceX’s tech revolution succeeds, it could spur further US dollar strength, putting pressure on the rand (USD/ZAR). Bigger picture: local firms like MTN could benefit from cheaper tech infrastructure globally, but that’s a stretch for now. The better bet is watching the rand; a firmer dollar might weigh on it for a while. If US tech rides high, the rand faces headwinds, so defensive sectors or exporters might be safer on the JSE. this is just our opinion and not financial advice
Avoid buying SpaceX stock directly given the frothy valuation. Instead, watch USD/ZAR closely; a rising dollar could pressure the rand and local markets. Consider trimming rand-exposed, domestic-heavy stocks and look for exporters or defensive names on the JSE.
- SPCX
- USD/ZAR
- MTN
- AI growth disappoints, failing to meet lofty expectations
- US dollar weakens, supporting the rand and lowering risk off flows
6/10
SpaceX achieved its first profitable quarter as a public company with $0.35 EPS, driven by strong performance in its Connectivity (Starlink) and Super Intelligence (AI) divisions. While the AI segment showed explosive 830% year-over-year growth, the stock trades at a premium 114x earnings valuation. The analyst suggests the company is on the right track but needs to triple earnings to reach reasonable valuation levels, making it a potential long-term buy for believers in its future despite current high valuation.
Our take is based on reporting first published by The Motley Fool.