SpaceX: The Stock Dropped 32% — Is it a Buy?
SpaceX, the rocket and satellite company run by Elon Musk, went public in mid-June 2026, with the biggest stock market debut ever. Shares were priced at $135, shot up as high as $225.64, and have since fallen about 32% to around $153. So the big question investors are asking: now that it's cheaper, is it a good deal?
What the company actually does
SpaceX makes money in three main ways:
● Starlink (satellite internet): The star of the show. It brought in $11.4 billion in 2025, about 61% of all the company's money, growing 48% in a year, with more than 10 million customers. Best of all, it actually makes a profit, about $4.4 billion.
● Rockets (launches for NASA and others): added roughly $4 billion, but a lot of that is spent building the new Starship rocket (about $3 billion a year).
● xAI (the artificial intelligence business it recently bought): It brought in about $3.2 billion but lost money.
The catch: the whole company loses money. Even with Starlink doing great, all the spending on rockets and AI means SpaceX lost $4.9 billion in 2025 overall. So it's a company with one very profitable piece surrounded by two expensive bets.
Why do people say it's too expensive?
The company is valued at over $2 trillion, but it only made about $18.7 billion in sales last year. That means investors are paying roughly $100 for every $1 of yearly sales, and remember, the company isn't even profitable yet. For a stock to be worth that much, almost everything has to go right for years: Starlink keeps booming, Starship succeeds, and the AI business stops bleeding cash. That's a lot of "ifs".
Even Wall Street is sceptical. Morningstar, a respected research firm, thinks SpaceX is really worth about $780 billion, roughly half of what the market is pricing it at, and calls it significantly overvalued.
The other side. None of this means the business is bad. SpaceX dominates rocket launches and owns one of the fastest-growing, most profitable internet services around. The issue isn't the company, it's the price tag. And because the stock has a huge fan base and a famous founder, it could keep climbing on excitement alone, even if the numbers don't justify it. But buying on hype is risky.
Market sentiment:
Sentiment around SpaceX is cautious and clearly split. The 32% slide from its peak shows early excitement is cooling as reality sets in, with shares now near the low end of their range. Professional analysts lean negative. Morningstar's roughly $780 billion valuation suggests the stock is priced far above what the business is currently worth, even as they admire Starlink's strong, profitable growth. At the same time, SpaceX's loyal retail following and Elon Musk's star power could keep the stock elevated regardless of the fundamentals.
Disclaimer:
This content has been generated using AI technology and is intended for informational purposes only. While efforts have been made to ensure accuracy and relevance, this text should not be considered professional advice or an official statement. Always verify information from authoritative sources before making any decisions. This is not financial advice.
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