SpaceX Stock Is Down 50% From Its Peak. Here's 1 Reason to Buy the Dip, and 1 Reason to Run for the Hills.
2026-08-07 10:15
•Anthony Di Pizio •The Motley Fool
•••••• ••••• Axe Cap view
SpaceX’s Meteoric Slide: Tempting But Too Hot to Hold
SpaceX’s 50% fall post-IPO highlights a risky valuation despite strong revenue growth.
SpaceX is a fascinating story: nearly doubling revenue year-on-year and pushing hard into AI infrastructure alongside its space ventures. That said, its price-to-sales ratio of 65 is absurdly high, especially when you compare it to the Nasdaq-100 average of just over 6. This disconnect suggests the market is pricing in almost flawless execution of its lofty $100 billion AI revenue goal by year’s end. For South African investors, there’s little direct exposure on the JSE — and frankly, I’d rather keep an eye on USD/ZAR here. A weaker rand could make any offshore tech exposure pricier, which dovetails poorly with a premium valuation like SpaceX’s. That said, if you’re a believer in AI and satellite tech’s long-term potential, this selloff might be a tempting entry point. Just know it’s a speculative bet with considerable execution risk, so patience is key. this is just our opinion and not financial advice
Avoid direct exposure to SpaceX for now. Instead, watch USD/ZAR closely—if the rand weakens further, it could amplify volatility for offshore tech investments. Wait for clear proof of SpaceX hitting its AI revenue targets before considering a buy.
- USD/ZAR
- Naspers
- SpaceX fails to meet ambitious AI revenue targets
- Rand depreciates sharply, increasing offshore investment costs
5/10
SpaceX has fallen 50% from its $225 peak to $110 following its June IPO, driven by valuation concerns despite strong fundamentals. The company generated $7.8B in Q2 2026 revenue (92% YoY growth) across space transportation, satellite connectivity, and AI infrastructure businesses. While SpaceX's AI business is rapidly growing with $6.7B in new contracts, its current P/S ratio of 65 appears overvalued compared to the Nasdaq-100's 6.4. The stock may be worth waiting on until the company proves it can achieve its projected $100B AI revenue run rate by end of 2026.
Our take is based on reporting first published by The Motley Fool.