Space Exploration Technologies (SPCX +0.95%) stock briefly fell below $125 a share on Friday, before recovering to about a 4% loss as of 12:55 p.m. ET in the afternoon -- and it doesn't matter.
Whether down 5% or only 4% today, SpaceX stock is officially a broken IPO, returning to just pennies above its IPO price Wednesday, and falling well below it Thursday and Friday. But here's the real question.
Image source: Getty Images.
Is SpaceX's below-IPO share price good or bad news?
That's a tougher question to answer. On the one hand, SpaceX stock has lost the momentum that drove it up 67% from its IPO price in its first three days of trading. The company faces new competition from China, which just completed its first successful water landing of a reusable rocket. It's also been forced to postpone a Starship test flight when multiple engines refused to ignite at launch.
Worst of all, SpaceX's big bet on turning itself from a space stock into an artificial intelligence stock has gone awry, with investors selling off AI stocks in droves the past several days -- "SpaceXAI" among them.
We are now @SpaceXAI. pic.twitter.com/ema66xDWC9
-- SpaceXAI (@SpaceXAI) July 6, 2026
Is SpaceX stock cheap now?
NASDAQ: SPCX
Key Data Points
Those are all reasons to avoid SpaceX stock -- but now here's one reason to buy SpaceX instead:
At its new share price of $125, SpaceX stock costs 192 times forecast 2027 earnings, but earnings are expected to grow so fast that by 2028 the P/E ratio drops to 33, and by 2029 -- just 22.5.
Analysts see SpaceX earnings growing on average 152% annually over the next five years, more than doubling every year. While the future's uncertain, and the end may always be near, there's now a reasonable case to be made that SpaceX stock is approaching fair value -- and will soon be cheap enough to buy.
