Motley Fool contributor recommends holding SpaceX shares for now

Motley Fool

Motley Fool contributor Keithen Drury recommends holding SpaceX shares—or staying on the sidelines if you own none—rather than buying now. He cites 92% second-quarter revenue growth but says the $2 trillion market cap is 45 times estimated 2026 sales.

In the second quarter, SpaceX reported $4.3 billion in connectivity revenue, $2.6 billion from AI and $962 million from space, its smallest segment. Year over year, AI revenue rose 213% and connectivity revenue 66%. The article says the company sees growth in connectivity and AI as a way to fund its longer-term aim of developing a space economy.

Wall Street analysts estimate SpaceX will generate $44.8 billion in revenue this year. Drury says that even a hypothetical 50% profit margin would leave the shares valued at 90 times earnings; he suggests watching the stock over the next year before deciding whether to buy.

#SpaceX-stock-outlook #SpaceX-stock-buy-or-hold
Share