SpaceX Stock Reaches All-Time Low. Here's the Case for Buying Before Aug. 4 Earnings.
2026-07-29 06:05
•Ryan Vanzo •The Motley Fool
••• • Axe Cap view
SpaceX's Dip: What South African Investors Should Watch
Despite a 10% drop from IPO price, SpaceX's future pivots on heavy spending and tech breakthroughs.
SpaceX’s recent share decline might catch some off guard, especially after a record $87.5 billion raised through the IPO, plus $25 billion in bonds. The company remains unprofitable and faces an eye-watering $350 billion in planned spending until 2030. That’s a mountain to climb for any business. Yet, the technology progress, especially with the Starship tests, points to genuine long-term potential. For South African investors watching the USD/ZAR, SpaceX’s capital intensity and cash burn could keep the dollar strong against the rand as global tech remains highly dollar-linked. If US tech cools, the rand usually gains, but with recent dollar resilience, local tech-linked stocks like Naspers and Prosus may feel ongoing pressure. That said, if SpaceX nails earnings and growth prospects improve, it could boost overall tech sentiment broadly, and thus drag the rand lower in a shift back toward risk appetite. The view could be wrong if the firm executes faster than expected or if global tech sentiment suddenly swings positive for emerging markets, lowering the USD/ZAR. this is just our opinion and not financial advice
Watch USD/ZAR closely; consider trimming exposure to tech-linked South African names like Naspers and Prosus on strength. Avoid chasing SpaceX-related tech hype directly, given the uncertain capital outlook.
- USD/ZAR
- Naspers
- Prosus
- SpaceX failing to control capital expenditures
- Unexpected global shift in tech and currency sentiment
6/10
SpaceX stock has declined over 10% from its IPO price despite raising $87.5 billion in the offering plus $25 billion in bonds. While the company remains unprofitable and faces $350 billion in planned capital expenditures through 2030, analysts argue the lower valuation (now $1.5 trillion vs. $1.77 trillion at IPO) makes it more attractive. Recent successful Starship test flights validate the company's growth strategy, though significant financing will still be needed.
Our take is based on reporting first published by The Motley Fool.