What $5,000 Invested in SpaceX Could Be Worth by 2030
Here are the bull, base, and bear cases every investor should consider.
Overview
Predicting where any stock will trade four years out is guesswork, and that goes double for Space Exploration Technologies (NASDAQ: SPCX), the newly public company most people know as SpaceX. Still, since it now trades on the open market at around $150 per share, it's worth walking through what a $5,000 stake might become by 2030, and, more important, what would have to go right or wrong for it to get there.
At roughly $150, $5,000 would buy about 33 shares. Every scenario that follows starts with that same handful of shares. The difference is what the market decides they're worth once Starlink, Starship, and the company's space-based computing ambitions play out.
Details
The optimistic path runs through Starlink. The satellite broadband unit already generates most of SpaceX's revenue, and in a strong scenario, that business, paired with a successful Starship rocket, could push company revenue toward $60 billion to $70 billion by 2030. If that happens and investors keep paying a premium multiple for the company, the stock could reach the $800 range that the most bullish Wall Street analyst covering it -- Brian Gesuale of Raymond James -- has floated. That would turn $5,000 into roughly $26,000.
Source
Originally published at www.fool.com.