Here's the 1 Thing I'd Wait to See Before Buying SpaceX Stock.
2026-10-10 17:05
•Leo Sun •The Motley Fool
••••••• ••••• Axe Cap view
Waiting on SpaceX’s AI Proof Before Buying In
SpaceX’s AI losses overshadow Starlink profits, making its high valuation risky for now.
SpaceX is an exciting company with serious long-term potential — Starlink’s satellite internet is already turning a profit, while Starship promises to reshape space travel. But the AI division is bleeding cash, with losses jumping from $2.46 billion to $3.73 billion in just six months of 2026. That’s wiping out Starlink’s gains entirely. Trading at nearly 50 times sales for a $2.2 trillion market value feels stretched, especially as capital-intensive projects like AI become headline risks. South African investors won’t find direct JSE peers here, so watch the USD/ZAR closely: a stronger rand could make foreign exposure more expensive. A sharper US dollar or higher global rates could worsen losses on the balance sheet. I’d recommend holding off on buying SpaceX shares until there's clear evidence the AI business can turn the corner and stop draining cash. this is just our opinion and not financial advice
Wait for better clarity on AI profitability before committing capital. Meanwhile, monitor USD/ZAR volatility as it impacts overseas tech valuations for South African investors.
- SPCX
- USD/ZAR
- AI business continues to burn cash without a clear path to profits
- Rising US interest rates increase cost of capital and pressure valuation multiples
6/10
SpaceX stock has declined from its IPO high despite strong growth prospects in Starlink and Starship. However, the company's AI business segment is a major concern, with operating losses widening from $2.46 billion to $3.73 billion in H1 2026, erasing Starlink's $2.84 billion operating profit. At a 49x sales valuation with a $2.2 trillion market cap, the analyst recommends waiting until SpaceX proves its AI investments are not just a money pit before investing.
Our take is based on reporting first published by The Motley Fool.