Investing $1,000 in SpaceX: Could It Deliver Life-Changing Returns?

Now that the IPO hype surrounding Space Exploration Technologies (NASDAQ: SPCX), better known as SpaceX, has died down, investors may be better able to analyze the stock for what it is. Furthermore, it's priced at less than $140 per share, and is near the lowest price that retail investors have been able to buy it at. If you've got $1,000 sitting around waiting to be invested, is SpaceX the perfect stock to buy right now? Or are there better options out there?

Image source: The Motley Fool.

Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now, when you join Stock Advisor. See the stocks »

SpaceX is already quite large

First, let's discuss what qualifies as a "life-changing" return on an investment. I'd consider that to be something along the lines of a tenfold to hundredfold return, or turning $1,000 into $10,000 to $100,000. If that's what investors are looking for with SpaceX, they may be sorely disappointed. Currently, it has a market cap of about $1.8 trillion. So a tenfold return from here would be a $18 trillion company -- more than Nvidia (NASDAQ: NVDA), Apple (NASDAQ: AAPL), Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL), and Microsoft (NASDAQ: MSFT) combined at their current valuations. An outcome like that is probably a bit too far-fetched to expect.

However, could SpaceX still be a solid investment that consistently beats the market? I think that's a much more realistic expectation.

SpaceX's business has three core segments: artificial intelligence (AI), connectivity, and space. Space is the component that most recognize, as SpaceX regularly launches payloads into orbit with its Falcon rockets, and the company has well-publicized grand plans to colonize Mars and perform other activities in space. Its AI unit is also well defined, as SpaceX purchased xAI, the company that developed the Grok large language model, shortly before going public. The connectivity division may have investors questioning it a bit more, but it's currently SpaceX's most important division.

The connectivity unit's business is mostly centered on Starlink, a satellite-powered broadband service that gives users access to high-speed internet practically wherever they are in the world. This is SpaceX's most important division: Its revenue grew by 50% to $11.4 billion in 2025, accounting for more than half of SpaceX's total top line. For comparison, the space business had revenue of $4.1 billion and grew only 8% year over year. Its AI division had revenue of $3.2 billion, growing at a 22% rate. (The AI division's revenues also include ads from X, formerly known as Twitter).

As of now, SpaceX is primarily a telecommunication business. Those historically haven't been the greatest investments, and although there is a lot of hype surrounding its other divisions, that's what it boils down to. As a result, I think SpaceX may struggle for a bit, as its valuation is quite high for a company that's essentially currently a telecom. Now, if SpaceX can achieve other goals in space and AI, my opinion may change, but as of now, I don't think it's the best investment option out there.

Keithen Drury has positions in Alphabet, Microsoft, and Nvidia. The Motley Fool has positions in and recommends Alphabet, Apple, Microsoft, and Nvidia. The Motley Fool has a disclosure policy.