If I Had $10,000 to Invest Today, Here's the Trillion-Dollar Stock I'd Buy Instead of SpaceX
SpaceX's sky-high valuation leaves very little room for positive returns in the near term.
Overview
Space Exploration Technologies (NASDAQ: SPCX) was founded by Elon Musk in 2012. Its original mission was to reduce the cost of space travel, but it has since expanded into the satellite connectivity and artificial intelligence (AI) industries. The company went public in June, and investors quickly sent its stock soaring to a peak of $225, but it has since declined by 32% to close at $152.71 last Friday.
Despite the recent slide, SpaceX still has a market capitalization of $2.1 trillion. With just $23 billion in revenue over the last four quarters, its stock is trading at a ludicrous price-to-sales (P/S) ratio of 91, making it nearly 15-times more expensive than the technology-heavy Nasdaq-100 index.
Details
That means more downside might be ahead, so if I had $10,000 to invest today, I'd look elsewhere. Here's why I think Google parent Alphabet (NASDAQ: GOOGL)(NASDAQ: GOOG) might be the better buy over the long term.
Source
Originally published at www.fool.com.