If I Had $5,000 to Invest Today, Here's the Growth Stock I'd Buy Instead of SpaceX
This company continues to report excellent operating results, and its stock looks like a bargain.
Overview
Elon Musk's Space Exploration Technologies (NASDAQ: SPCX) went public on June 12. Investors were initially enthusiastic about the company's space transportation, satellite internet, and artificial intelligence (AI) businesses, so its stock quickly surged to a peak of $225. However, it has since plummeted by 39% and closed at just $136.97 on Friday, Aug. 21.
SpaceX still has a market capitalization of $1.86 trillion, and based on the company's trailing 12-month revenue of $23 billion, its stock remains at a sky-high price-to-sales (P/S) ratio of 80.8. Therefore, it's still a whopping 13 times as expensive as the Nasdaq-100 technology index.
Details
That hefty valuation leaves plenty of room for more downside in SpaceX stock, so if I had $5,000 to invest today, I'd probably be looking elsewhere. Here's why I think Netflix (NASDAQ: NFLX) stock could perform far better over the long term.
Source
Originally published at www.fool.com.