Want to Buy SpaceX? Why You May Be Better Off Just Buying Alphabet's Stock
The tech giant has a significant stake in the space company.
Overview
Space Exploration Technologies Corp (NASDAQ: SPCX) captivated the market when it went public back in June. And while it's down considerably from its peak, its valuation remains massive at around $1.4 trillion as of the end of last week. Growth opportunities in not only space but also artificial intelligence (AI) as a whole have investors excited about its potential.
However, there will inevitably be considerable volatility in the stock. The company, better known as SpaceX, isn't profitable and is burning through a ton of cash as it invests in its future growth opportunities. A better option for investors may simply be to invest in a top tech company that already holds a large position in SpaceX: Alphabet (NASDAQ: GOOG)(NASDAQ: GOOGL).
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Originally published at www.fool.com.