Is Intuitive Machines Stock a Buy Now?

The current market downturn may have some investors running for the safety of conservative stock picks. Others, however, recognize today as a great time to pick up out-of-this-world growth stocks at a discount. Intuitive Machines (NASDAQ: LUNR), for example, fits the bill perfectly. After rocketing 611% higher in 2024, the space stock has come back to Earth and plunged 53% so far in 2025 as of this writing.

But does this pullback mean that it's a good time to click the buy button, or is it better to watch Intuitive Machines from a distance for the time being? Let's take a closer look at the bull and bear cases.

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Bulls are over the Moon about the company's potential

It's may be difficult to tell by simply looking toward the stars, but the space economy is booming. Consulting firm McKinsey & Company estimates that the global space economy was valued at $630 million in 2023, and will rise to $1.8 trillion over the next decade. This presents a sizable market opportunity for Intuitive Machines, which has its hands in the following: lunar access services, orbital services, lunar data services, and space products and infrastructure.

Essentially, the company's business directly revolves around the Moon. In its 10-K, for example, Intuitive Machines states explicitly that the company is "committed to fundamentally disrupting lunar access economics." Already the company is making progress toward achieving this goal. In addition to partnering with NASA for four missions, the company includes the U.S. Department of Defense and international government agencies in Europe and Asia as customers.

Image source: Getty Images.

While skeptics may surmise that the company's space ambitions are nothing more than pie-in-the-sky dreams, Intuitive Machines is already generating sales, and it's well-positioned for future sales as well. The company reported revenue of $228 million in 2024, and its backlog at the end of 2024 totaled $328.3 million.

Bears are afraid to be lost in space

Intuitive Machines has certainly achieved some impressive feats since its founding in 2023, but plenty of investors remain unconvinced that picking up the stock is a savvy move. For one, there's doubt that the space economy's growth will materialize in the auspicious manner that some analysts expect.

Between the current market downturn and the numerous cost-cutting measures occurring in Washington, D.C. -- a recent Trump administration 2025 budget proposal suggests a 20% cut to NASA's budget, for example -- confidence in the belief that there's strong interest in developing lunar business seems questionable.

What's more, there's currently a limited number of potential customers available to Intuitive Machines. While the space economy may eventually burgeon to the point where there are numerous parties with business on and around the Moon, right now that's not the case. The fact that a single customer accounted for 74% and 90% of revenue in 2023 and 2024, respectively, illustrates the currently tenuous nature of its business.

Founded in 2013, Intuitive Machines may still be a relatively young business, but the fact that its bottom line is inconsistent raises questions about how profitable the lunar business endeavor may ultimately be. While revenue jumped to $228 million in 2024 from $80 million in 2023, the company's diluted earnings per share plummeted to negative $4.63 in 2024 from positive $2.42 in the previous year.

For now, success still looks far off

With the space economy market expected to blast off in the coming decade, it's not surprising that investors are turning their attention to Intuitive Machines. At this point, however, the company seems like it should only be on the radars of investors with lengthy time horizons who are not averse to a more speculative stock. Those looking for a more conservative option operating in the final frontier aren't out of luck, as there are a number of other space stocks to consider.

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Scott Levine 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.