SpaceX Sank Today -- Is the Stock a Buy Right Now?
Key Points
SpaceX stock slipped today amid bearish momentum for the broader stock market.
The company has huge growth potential, but its valuation profile comes with a lot of risk.
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Wednesday saw Space Exploration Technologies (NASDAQ: SPCX) stock record its first day in the red since going public on June 12. The company's share price slid roughly 5% in a daily session that saw the S&P 500 decline roughly 1.2% and the Nasdaq Composite fall 1.3%.
There wasn't any business-specific news behind SpaceX's valuation pullback today, but it's not shocking that the stock has taken a breather on the heels of its red-hot IPO. Even with today's pullback, the company's share price is up roughly 42% from where it stood at the close of the market on the day of its public debut.
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Is SpaceX stock a buy right now?
Even though SpaceX's valuation retreated today, the company still has a market capitalization of roughly $2.52 trillion. With the company recording revenue of roughly $18.7 billion last year, the tech specialist is valued at approximately 135 times last year's sales. The business grew its revenue 33% in 2025 and will likely continue to post strong expansion momentum for the foreseeable future, but the stock looks risky at current valuation levels.
CEO Elon Musk has recently said that SpaceX could post revenue of $1 trillion by 2030. If the business were to meet that sales target, the passage of time would likely show that the company's stock was significantly undervalued at current levels. On the other hand, scaling from $18.7 billion in sales last year to $1 trillion in revenue by 2030 would be an extraordinary feat. SpaceX doesn't necessarily have to hit that sales target to deliver wins for shareholders, but patient investors may be able to secure a significantly more attractive entry point if they are willing to wait for additional valuation pullbacks.
Should you buy stock in Space Exploration Technologies right now?
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Keith Noonan has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
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