Is SpaceX Stock a Buy at a $2.5 Trillion Valuation?
A closer look at its three segments reveals a valuation that is hard to wrap your head around.
Is SpaceX Stock a Buy at a $2.5 Trillion Valuation?
Overview
Space Exploration Technologies (NASDAQ: SPCX) made its public debut on June 12 at a valuation of nearly $2 trillion. As of June 18, just a few days later, SpaceX has added another roughly $500 billion to its market capitalization. Is it worth buying at this price?
The company is really three businesses under one roof: space, connectivity, and artificial intelligence (AI). The first involves developing and launching rockets. Connectivity covers Starlink, the company's satellite internet service. And then there is the AI segment, which includes the social media platform X as well as xAI, Elon Musk's answer to OpenAI and creator of Grok.
Of the three, only one makes money. While the launch business is the face of the company, Starlink is the financial engine. You can see a basic breakdown of SpaceX's financials by segment in the table below:
Details
Source
Originally published at www.fool.com.
