If I Had $10,000 to Invest Today, Here's the Trillion-Dollar Stock I'd Buy Instead of SpaceX
More downside might be ahead for SpaceX stock, considering its sky-high valuation.
Overview
Space Exploration Technologies (NASDAQ: SPCX) went public on Friday, June 12, and promptly soared to an all-time high of $225.64. But by the market close on Friday, June 26, the stock had fallen by 32% to $153.23.
The space transportation and internet connectivity company, which was founded by Elon Musk, still has a market capitalization of $2 trillion. With just $19.3 billion in trailing 12-month revenue, its stock is trading at a price-to-sales (P/S) ratio of 103, making it 15 times as expensive as the Nasdaq-100 technology index. As a result, I think more downside could be on the way for SpaceX.
Details
If I had $10,000 to invest in one stock for my diversified portfolio, I'd definitely look elsewhere. Here's why Amazon (NASDAQ: AMZN) might be the better long-term buy.
Source
Originally published at www.fool.com.