Space Exploration Technologies (SPCX -3.41%), popularly known as SpaceX, finally made its highly anticipated debut last week, and closed yesterday at $201.80 per share, up 34.5% from the June 12 opening price of $150. With a market cap near $2.6 trillion, SpaceX is one of the biggest companies in the world. Is the stock a buy now?
SpaceX's performance is earthbound
SpaceX is the largest rocket-launching company in the world and works with the U.S. government as well as private clients. CEO Elon Musk envisions a future that's "multiplanetary," and he hopes to eventually settle the moon and Mars.
Image source: Getty Images.
While colonizing Mars may be the most exciting SpaceX ambition, the Starlink segment has the most momentum. Starlink has 9,600 satellites in space, and it plans to launch a new wave of more powerful satellites in the coming months. Starlink accounts for most of the company's revenue, and it increased 50% in 2025.
Artificial intelligence (AI) revenue was $3.2 billion last year, but the segment reported a $6.3 billion loss. The AI business is the smallest right now, but management sees it as having the largest market opportunity.
Although these are three separate businesses, they're linked in their focus on space. The AI business fits in because the company believes the energy required to drive data centers and AI development is constrained on Earth, and it hopes to build data centers in orbit using solar power.
Should you believe in the hype?
Whatever the business, the company's main attraction is its trillionaire CEO. Musk's vision for the future has led to the creation of world-changing companies, including Tesla and PayPal Holdings, and SpaceX could be the most consequential of all. SpaceX investors are buying into this vision.
NASDAQ: SPCX
Key Data Points
However, there's a steep price to pay. Shares are trading at a price-to-sales ratio around 135, and the company is losing money. Sales increased 15% year over year in the 2026 first quarter after a 33% increase in 2025. It reported a $4.9 million loss last year.
Stocks with this kind of valuation can fall pretty quickly. Even Tesla is considered expensive, trading at a price-to-sales ratio of 15. The fundamentals just don't back up such a premium price tag for SpaceX.
SpaceX may eventually turn a profit, and sales growth could accelerate, but even if those things happen, the stock would still be overvalued. Patient investors who love SpaceX's vision are better off waiting for a better entry point before buying shares.
