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If You'd Invested $10,000 in SpaceX at Its IPO, Here's How Much You'd Have Today

The Motley Fool · 1d ago

Key Points

  • Space Exploration Technologies shares, which have been volatile, are currently 9% below the price they started trading at on June 12.

  • Revenue growth has been incredible, AI-related capital expenditures are soaring, and the valuation is steep.

Space Exploration Technologies (NASDAQ: SPCX) set a record for the largest initial public offering (IPO) in capital markets history. It raised nearly $86 billion in June. The market capitalization at open exceeded $2 trillion, with shares trading at $150.

If you invested $10,000 in this leading space stock at its IPO, here's how much you'd have today.

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SpaceX on black filter with Earth's outline in background.

Image source: The Motley Fool.

In its extremely short trading history, SpaceX shares have fallen 9% since the IPO opening price (as of Sept. 29). If you invested $10,000 when the stock hit public markets, you'd have $9,137 today.

The ride has been highly volatile. At its low point on Aug. 5, the stock was down 33%. Since then, it has rocketed 37% higher.

Revenue growth has been spectacular, up 92% year over year in the second quarter (ended June 30). This was driven by a 66% gain in connectivity and a 274% surge in artificial intelligence, the latter supported by new cloud service agreements.

The business remains unprofitable, although the operating loss shrank considerably in Q2. Significant cash burn is another key part of the financial story. SpaceX's capital expenditures climbed 550% year over year to $18.4 billion in the second quarter as it invests in AI infrastructure.

No one denies that this is an extremely exciting company. However, investors might want to think twice about buying shares right now. They trade at a price-to-sales ratio of 95.

Neil Patel has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.