SpaceX Won't Be Free-Cash-Flow Positive Until 2029 and It's Already Taking on $25 Billion in Debt. Here's What That Means for Your Investment.
Investors should look beyond the IPO excitement and realistically evaluate the risk-reward potential of SpaceX stock.
Overview
Space Exploration Technologies' (NASDAQ: SPCX) initial public offering (IPO) has given investors access to a company that combines rocket launches, satellite broadband, mobile connectivity, and artificial intelligence (AI) infrastructure. However, although SpaceX has one of the strongest positions in the global space economy, it is still expected to burn cash for years.
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S&P Global Ratings, part of S&P Global, expects elevated capital spending to keep SpaceX's free cash flow negative through 2029, even after its blockbuster IPO. Hence, the company's growth story depends on when its other businesses become profitable.
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Source
Originally published at www.fool.com.