If I Had $5,000 to Invest Today, Here's the Trillion-Dollar Stock I'd Buy Instead of SpaceX
This stock might have significantly more upside potential than SpaceX.
If I Had $5,000 to Invest Today, Here's the Trillion-Dollar Stock I'd Buy Instead of SpaceX
Overview
Elon Musk's space transportation and satellite internet connectivity company, Space Exploration Technologies (NASDAQ: SPCX), went public on Friday, June 12. It was well received by investors, and its stock climbed to a peak of $218 per share within a few days.
But with a market capitalization of $2.8 trillion and just $19.3 billion in trailing-12-month revenue, it was trading at a sky-high price-to-sales ratio of 145, making it a whopping 20 times as expensive as the Nasdaq-100 technology index.
Details
That valuation was simply unsustainable, and as of the market close on Thursday, June 18, SpaceX stock had already fallen to $185. But it's still very expensive, so if I had $5,000 to invest in one stock for my diversified portfolio, I would probably look elsewhere. In fact, here's why Microsoft (NASDAQ: MSFT) might be the better long-term buy.
Source
Originally published at www.fool.com.
