Here's the 1 Thing I'd Wait to See Before Buying SpaceX Stock.
Key Points
SpaceX’s AI losses are erasing Starlink’s profits.
It needs to prove the AI business isn’t a messy money pit.
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SpaceX (NASDAQ: SPCX) went public at $135 per share on June 12, reached a record high of $211.39 four days later, but now trades at about $160. The aerospace and AI company initially attracted significant attention from growth-oriented investors. Still, concerns about its capital-intensive expansion plans, steep losses, and sky-high valuation weighed on its stock.
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Why haven't I bought SpaceX yet?
SpaceX has plenty of irons in the fire. Its Starlink satellite internet service is growing rapidly, and its recent acquisition of T-Mobile's 800 MHz spectrum could turn it into a mobile powerhouse. Its namesake spacecraft business could expand significantly as it ramps up Starship launches, the largest rocket ever built. Its fragmented AI business (which includes X, Grok, and Cursor) could also flourish as it launches new products and services.
However, I wouldn't touch SpaceX's stock until its AI business stabilizes. In the first half of 2026, the AI segment's operating loss widened year over year from $2.46 billion to $3.73 billion, wiping out Starlink's operating profit of $2.84 billion. It expects the AI segment's losses to widen further as it ramps up its infrastructure investments. Those capital-intensive bets might eventually pay off, but they'll cast a dark cloud over its stock if interest rates keep rising.
With a market cap of $2.2 trillion, SpaceX trades at 49 times this year's sales. I wouldn't pay that premium unless it can prove its AI business isn't just a money pit.
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Leo Sun has no position in any of the stocks mentioned. The Motley Fool recommends T-Mobile US. The Motley Fool has a disclosure policy.
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