Could Buying SpaceX Stock Today Set You Up for Life?

The temptation to go all-in on a newly public company like Space Exploration Technologies (NASDAQ: SPCX) that's getting lots of attention is understandable.

Media companies talk the stock up, friends and family wonder whether they should buy it, and the frenzy can lead to share price pops that perpetuate the feeling that a stock can help you strike it rich.

And yet, that's not how people statistically make the most money in the stock market.

Fidelity research shows that contributing 15% of your income over decades to a 401(k) or IRA, which earns an average annual return of about 7% to 10%, is how most people reach $1 million or more.

That may sound boring, but it's far more stable than betting on SpaceX to set you up for life. Here's why it's probably best not to expect SpaceX to make you rich.

Image source: Getty Images.

SpaceX is burning through cash with no end in sight

SpaceX has some very ambitious goals, like colonizing Mars and launching AI data centers into space. The thing about doing both of those things, though, is that it's extremely expensive. The company's capital expenditures (capex) surged 86% in 2025 to $20.7 billion.

And it's not slowing down. Capex spending reached $10 billion in Q1 2026, indicating SpaceX will spend even more this year than last.

While its rocket business and artificial intelligence businesses are costing it money, there is one profitable business: Starlink. SpaceX's connectivity segment (which is made up primarily of Starlink) had about $11.4 billion in sales last year and $4.4 billion in operating income.

Unfortunately, that's not enough to offset the company's total spending, resulting in a net loss of $1.69 per share in 2025.

One of the big problems with SpaceX stock right now is that in addition to the company burning through cash and having significant losses, its shares are still very expensive. The stock has a price-to-sales (P/S) ratio of about 109 right now, compared to the tech sector average P/S ratio of 9.

So, to recap: SpaceX is making big bets on costly tech, its capex spending is ramping up, it's unprofitable, and its shares are very expensive.

Don't bet it all on SpaceX

Look, I understand the appeal of a rocket company. And SpaceX could reduce some of its costs if it achieves certain efficiencies with its Starship rockets. Some analysts project that Starship could cut launch costs by 90% or more compared to its Falcon rockets.

It's also true that SpaceX is doing a good job growing its Starlink business. It now has 12 million subscribers, up from just 2.3 million in 2022. Starlink will likely help SpaceX grow its sales over the coming years and become an even more important part of its business than it is already.

But all of that doesn't cancel out the company's high costs. Nor does it eliminate the inherent volatility most stocks exhibit after a major IPO. Decades of data show that large IPOs typically fizzle out for at least a year, with gains of less than 4% after their IPO date.

All of which means that buying SpaceX today likely won't set you up for life. And if you're tempted to buy some shares right now, it's probably best to wait until the company reports a few quarterly results to see if it's achieving its goals. In the meantime, consider taking the boring route to $1 million by contributing to a retirement account.

Chris Neiger 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.