If I Had $1,000 to Invest Today, Here's the Trillion-Dollar Stock I'd Buy Instead of SpaceX
2026-08-03 09:15
•Anthony Di Pizio •The Motley Fool
••••••• •• Axe Cap view
Why Microsoft Beats SpaceX Despite the Hype
SpaceX’s lofty valuation doesn’t match its recent performance; Microsoft’s cloud and AI engines offer stronger local appeal.
SpaceX’s recent share price decline and sky-high price-to-sales ratio make it tough to swallow. At 74 times sales, you’re paying a massive premium for future potential that might take years to materialize—if at all. Contrast that with Microsoft, whose Azure cloud division is growing at 43% yearly and drives a $678 billion order backlog. On the JSE, companies like Naspers and Prosus rely heavily on Microsoft’s technology, so a healthy Microsoft supports local tech ecosystem stocks. Plus, Microsoft’s AI push with Copilot shows it’s not just about cloud storage but practical tools businesses want now. The valuation difference is stark—Microsoft trades around 25 times earnings, seriously cheaper and more grounded. If Microsoft stumbles from regulation or slower AI adoption, the bear case for South African tech-linked stocks and the rand tech sector could worsen. But for now, Microsoft offers a clear buying edge over SpaceX’s long shot. this is just our opinion and not financial advice
Focus on adding stocks or ETFs with significant Microsoft exposure through Prosus or Naspers while avoiding speculative names like SpaceX at current prices.
- MSFT
- USD/ZAR
- Naspers
- Prosus
- AI adoption disappoints
- Regulatory clampdowns on big tech
- Rand volatility impacting tech-linked stocks
7/10
SpaceX stock has lost half its value since going public and trades at an expensive 74 price-to-sales ratio. Microsoft is recommended as a better investment alternative, with strong Azure cloud growth, a $678 billion order backlog, accelerating AI adoption through Copilot, and a more attractive valuation at 25.1 P/E ratio compared to SpaceX's premium pricing.
Our take is based on reporting first published by The Motley Fool.
More stories like this
- P&G Guided Below Estimates and Sits 5% Above a 52-Week Low. I'm Not Buying It Yet, and Here's What Would Change That.
- Warren Buffett's Successor, Greg Abel, Started His Tenure With a Bang by Slashing Berkshire's Chevron Stake and Making a Virtual Monopoly the New No. 5 Holding
- Semiconductor Stocks Are Down 22%. Here's the 1 Chip Stock I'd Buy Right Now.