SpaceX Stock Is Down 45% From Its Peak. Should Investors Buy the Dip or Run for the Hills?
2026-07-18 08:11
•Anthony Di Pizio •The Motley Fool
•••••• ••••• Axe Capital view
SpaceX Dip Doesn't Make It a Buy
Sky-high valuation and losses keep SpaceX off my radar despite growth.
SpaceX’s recent 45% drop might look tempting to some, but the fundamentals caution against jumping in. The company is targeting aggressive revenue growth, particularly in AI infrastructure, but its price-to-sales ratio sits at an eye-watering 88—far above the Nasdaq-100’s average. For South African investors, it’s a classic case of a stock that costs a lot for a promise that’s not yet delivering profits. Given the rand’s volatility against the dollar, a further sell-off in tech giants like SpaceX could tighten risk appetite here. Meanwhile, our JSE counters with tech ties, like Naspers and Prosus, which offer more sensible valuations and more diversified revenue streams. The best move might be to watch from the sidelines. Investors should note, if AI infrastructure becomes a truly explosive growth sector faster than expected, SpaceX shares could surprise on the upside. this is just my opinion and not financial advice
Avoid SpaceX shares for now and consider selective exposure to local tech plays such as Naspers and Prosus, which balance growth potential with more reasonable valuations.
- SPCX
- USD/ZAR
- Naspers
- Prosus
- AI growth disappoints
- Rand weakens sharply against USD
6/10
SpaceX stock has declined 45% from its peak of $225.64 to $125, despite strong revenue growth projections and expansion into AI infrastructure. While Wall Street forecasts revenue could double to $39.2B in 2026 and reach $72.7B in 2027, the company trades at a P/S ratio of 88—14 times higher than the Nasdaq-100. Even accounting for future growth, SpaceX remains significantly overvalued and unprofitable, suggesting further downside risk.
This article was originally published by The Motley Fool and has been adapted here for Axe Capital Trading News.
Publisher: The Motley Fool
Author: Anthony Di Pizio
Categories: Equities, Earnings, IPOs, Technology, AI, Semiconductors
Tickers: SPCX, GOOG, GOOGL, GOOGM, GOOGN
Sentiment: Negative - Despite strong revenue growth projections and expansion into high-value AI infrastructure markets, SpaceX trades at an extremely elevated valuation (P/S of 88, 14x the Nasdaq-100). The company remains unprofitable and the analyst concludes the stock is 'far from cheap' with 'exposed to even more downside potential,' recommending against buying the dip. Mentioned as a customer signing a $920 million per month data center capacity agreement with SpaceX. This represents a positive business relationship but the article does not provide sentiment analysis specific to Alphabet's stock.
Keywords: SpaceX IPO, stock valuation, AI infrastructure, Starlink, revenue growth, overvaluation, investment risk
Insights:
- SPCX: Negative: Despite strong revenue growth projections and expansion into high-value AI infrastructure markets, SpaceX trades at an extremely elevated valuation (P/S of 88, 14x the Nasdaq-100). The company remains unprofitable and the analyst concludes the stock is 'far from cheap' with 'exposed to even more downside potential,' recommending against buying the dip.
- GOOG: Neutral: Mentioned as a customer signing a $920 million per month data center capacity agreement with SpaceX. This represents a positive business relationship but the article does not provide sentiment analysis specific to Alphabet's stock.
- GOOGL: Neutral: Mentioned as a customer signing a $920 million per month data center capacity agreement with SpaceX. This represents a positive business relationship but the article does not provide sentiment analysis specific to Alphabet's stock.