Is SpaceX Stock a Buy Before Its First Earnings Report as a Public Company?

Now that Space Exploration Technologies (NASDAQ: SPCX), oregon SpaceX for short, has arrived connected Wall Street, investors tin statesman looking up to its archetypal net study arsenic a nationalist company. It mightiness beryllium the astir anticipated lawsuit of the net season, expected sometime successful aboriginal August.

Not lone volition CEO Elon Musk present updates connected SpaceX's business, but a ton has happened implicit the past fewer weeks. The institution is acquiring Cursor, an artificial quality (AI) start-up, for $60 cardinal successful stock. Additionally, SpaceX present has conscionable implicit $100 cardinal successful currency to enactment to enactment toward its ambitious goals, including putting AI information centers successful space.

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Despite each the buzz, I'm not a purchaser heading into SpaceX's archetypal net report. Here's why.

SpaceX volition request clip to present connected its immense imaginable

The company's S-1 filing turned heads, pegging SpaceX's full addressable marketplace astatine $28.5 trillion. Although astir radical cognize SpaceX for Starlink and its rocket launches, the institution attributes the immense bulk of its addressable marketplace to AI.

SpaceX is surely a unsocial company, with a tantalizing premix of maturation opportunities crossed AI and space. However, achieving its ambitious goals, including those orbital information centers, won't hap overnight. Elon Musk is known for mounting a precocious bar, adjacent if it takes years to present results.

For arsenic overmuch maturation imaginable SpaceX has successful AI, it's besides presently the company's slightest profitable concern portion and faces steep contention from OpenAI and others. Starlink is SpaceX's astir profitable business, but its gross maturation slowed dramatically from 96.4% successful 2024 to 49.8% past year.

SpaceX's IPO is simply a crippled changer, and it wouldn't beryllium astonishing to spot maturation accelerate crossed the institution arsenic Elon Musk deploys billions of dollars of caller capital. That said, SpaceX's entreaty is acold much rooted successful its semipermanent opportunities than what the institution volition apt present by its archetypal net report.

That valuation could spell occupation successful the meantime

It's not a atrocious happening to look ahead. After all, Wall Street typically trades stocks based connected what it believes volition happen, not the past. But it gets tricky with SpaceX, a banal with a marketplace headdress of $2.2 trillion. That's astir 118 times the company's full gross past year.