Consumer Spending Is Slowing and SpaceX Is Burning Billions. Is Now Really the Right Time to Buy SPCX?

Space Exploration Technologies (NASDAQ: SPCX) had no shortage of buyers during its first days on the market. It surged from its first-day open of $150 on June 12 to over $225 on June 16. SpaceX's share price has fallen almost as quickly, back to $153 by the week ending June 26, but it's still one of the most popular stocks by trading volume.

Despite all the excitement, buying SpaceX stock right now is a risky move, and not just because of its staggering valuation.

Image source: Getty Images.

The macro environment is shaky

The U.S. annual inflation rate rose to 4.2% in May, its highest level since April 2023. Two-thirds of consumers said they plan to cut back on spending because of rising prices, according to The Conference Board's Consumer Confidence Survey. In a separate University of Michigan survey, over half of consumers said high prices were weighing down their personal finances.

As a rocket company, SpaceX might not seem particularly vulnerable to a slowdown in consumer spending. But its only business segment that turns a profit, connectivity, is anchored by Starlink, a satellite internet service that sells to consumers and small businesses. Lower consumer spending could lead to slower subscriber growth and higher cancellations, hurting SpaceX's biggest source of revenue.

Sky-high spending

Any dip in revenue would be a serious issue for SpaceX, as it carries significant debt and is spending heavily on Starship, satellite constellations, and artificial intelligence infrastructure. Capital expenditures in 2025 totaled $20.7 billion, of which $12.7 billion was allocated to its AI business. Capex in the first quarter of 2026 has already hit $10.1 billion.

To SpaceX's credit, its revenue has grown significantly over the last three years, including by 33% to $18.7 billion in 2025. But its losses have also been growing, with the space company reporting a net loss of $4.9 billion in 2025 and $4.3 billion already in Q1 2026.

SpaceX flagged in its S-1 that it expects capex and operating expenses to increase in the future, and that failure to maintain or increase revenue could keep it from achieving profitability. This is already a company with a stretched valuation, given its $2 trillion market cap. It needs rapid growth to justify that, and any negative news could cause it to plummet.

Should you hold off on buying SpaceX?

Between Starlink, the launch business, and AI, SpaceX has three businesses with growth potential. Potential doesn't pay the bills, though, and right now, this is an unprofitable, cash-hungry company recently trading at more than 100 times sales. Insiders also can't sell their shares yet, and the economy is looking fragile.

SpaceX is an interesting investment, but it's not one I'd make today. Instead, consider putting it on your watch list and reviewing the next couple of earnings reports to see how it does, rather than buying today while volatility is high.

Lyle Daly 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.