Fantastic News for SpaceX Stock Investors
2026-10-23 13:31
•Prosper Junior Bakiny •The Motley Fool
••••• • Axe Cap view
SpaceX's Stellar Growth Faces Hurdles for SA Investors
Exceptional AI and connectivity gains boost SpaceX earnings, but valuation and execution risks keep caution warranted.
SpaceX's recent results are impressive: revenue soared 161% year-on-year, driven by its AI-focused Super Intelligence unit and expanding Starlink connectivity. This kind of growth validates CEO Elon Musk's ambitious $1 trillion revenue target within a few years. But here’s the catch—a price-to-sales ratio near 70 demands serious caution. South African investors should watch USD/ZAR closely, as major tech successes impact risk sentiment and the rand’s volatility. Locally listed companies like Naspers and Prosus, which have exposure to global tech themes, could feel the indirect ripple effects. Still, these gains are shadowed by significant risks: potential delays in the Starship rocket program and any slowdown in AI sector growth would quickly cool enthusiasm. Until these execution issues clear, it’s prudent to monitor rather than chase this story. this is just our opinion and not financial advice
Watch USD/ZAR for broader tech sector signals; avoid chasing SpaceX-related risk in local counters for now. Focus on quality JSE shares with more stable fundamentals like Standard Bank or MTN.
- USD/ZAR
- Naspers
- Starship development setbacks
- slowing AI industry growth impacting profitability
6/10
SpaceX delivered strong Q3 2026 results with revenue soaring 161% YoY to $14.6B, driven by exceptional growth in its Super Intelligence (830% YoY) and Connectivity (69.5% YoY) segments. The company posted $4.4B net income versus a $1.1B loss in the prior year. CEO Elon Musk's $1 trillion revenue target by 2029-2030 appears more achievable, supported by growing AI cloud services demand and the development of the reusable Starship rocket. However, the stock's 68.5 price-to-sales ratio remains extremely high, and risks include Starship development delays and potential slowdown in AI industry growth.
Our take is based on reporting first published by The Motley Fool.