SpaceX Stock Rises 35% Since August, But Analyst Questions Timing of Purchase
Space Exploration Technologies (SPCX) has rebounded strongly after falling earlier this year. The stock is up 35% from its low in August and currently trades at $147.79 with a market cap of $2.01 trillion, despite being down nearly 10% since its first-day closing price. This resurgence followed strong second-quarter earnings where revenue grew by 92%, net loss was cut almost in half, and Starlink subscriptions doubled to 12 million. The company is also making strides in AI through xAI, with a 247% year-over-year revenue increase and major contracts signed. However, the stock's price-to-sales ratio remains high at 68—well above industry averages—and there are concerns about profitability and an upcoming lockup expiration in December that could lead to short-term volatility. While SpaceX continues to attract investor interest due to its ambitious projects like Starlink and Starmind AI satellites, analysts caution against buying now given the valuation risks. The company has yet to turn a profit, raising questions over whether current prices justify future potential.
Tickers: $SPCX
Topics: AI business expansion IPO performance SpaceX Starlink growth