Is SpaceX Stock a Buy Right Now?
Key Points
Space Exploration Technologies stock dropped as investors considered how the shifting political winds might weigh on its outlook.
The company's current focus on artificial intelligence leaves it vulnerable if governments impose new AI regulations.
AI revenues now account for over half of SpaceX's top line.
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Shares of Space Exploration Technologies (NASDAQ: SPCX), better known as SpaceX, plunged in the wake of the 2026 midterm elections, falling to less than $121 per share -- well below its initial public offering price of $135 per share -- before ending the week back up around that IPO figure on Nov. 6.
As of late Tuesday morning, SpaceX stock was trading around $142, but it remains well below the high of $225.64 it reached in June, just days after it went public. Does this mean now is the time to buy shares, or are there reasons to hold off? At this point, I would wait to buy. Here's why.
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SpaceX stock's volatility
Although SpaceX is best known as a rocket company, its focus today is on artificial intelligence (AI). Management sees AI as its largest growth opportunity. That factor contributed to the stock's slide after the midterm election results.
Democrats gained control of Congress and captured governorships in states key to the AI data center build-out, such as Texas, where SpaceX is headquartered. Some Democratic leaders, including Texas Gov.-elect Gina Hinojosa, have called for a halt on construction of new data centers until more robust regulations are established. SpaceX shares could see more volatility ahead, depending in part on how those regulations impact the company.
At the same time, I think the stock is worth owning because the company's business performance is strong. That's why I bought shares. In the third quarter, SpaceX delivered impressive 161% year-over-year revenue growth to $14.6 billion. Its AI business, which it now calls its "super intelligence" (SI) segment, generated sales of $7.6 billion, a jaw-dropping jump from $813 million in 2025, as SI quickly expanded from a small part of income to more than half.
However, the SpaceX stock held by pre-IPO stakeholders is still subject to a staggered insider lockup schedule, including the traditional 180-day cliff, which will arrive on Dec. 8. These increases in the tradable supply of stock tend to increase volatility, and SpaceX's price could fall again when more shares are unlocked. Given the stock's volatility, I'd recommend investors wait for the price to drop again before buying it.
Should you buy stock in Space Exploration Technologies right now?
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Robert Izquierdo has positions in Space Exploration Technologies. The Motley Fool has positions in and recommends Space Exploration Technologies. The Motley Fool has a disclosure policy.
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