Fantastic News for SpaceX Stock Investors!
The stock has climbed significantly from the lows it reached in early August.
Overview
Space Exploration Technologies (NASDAQ:SPCX) boasts a $2.1 trillion market cap despite generating just $7.8 billion in revenue in the second quarter and being unprofitable. There are other signs that the stock is richly valued. For instance, SpaceX's forward price-to-earnings ratio is 204, which is incredibly high by any standard. However, the bulls would argue that given SpaceX's prospects, particularly in the artificial intelligence (AI) market, it is worth the hefty premium.
In the second quarter, the rocket company's AI revenue was $2.6 billion, up 247.5% from the year-ago period, representing a much faster growth rate than the rest of the business. According to CEO Elon Musk, SpaceX expects to reach $1 trillion in annual revenue by 2030, with most of the company's value coming from AI. That's an ambitious goal, but recent developments make it at least a bit more likely.
Image source: The Motley Fool.
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Originally published at www.fool.com.