If You'd Bought $10,000 of SpaceX Stock at the IPO, Here's What You'd Have Today
2026-07-28 08:05
•Steven Porrello •The Motley Fool
••• • Axe Capital view
SpaceX IPO: Overhyped and Overpriced for Now
SpaceX shares have fallen sharply since IPO, making the current valuation tough to justify.
SpaceX debuted at $135 and has since dropped to roughly $110, turning a $10,000 stake into about $8,200. This drop, paired with a sky-high valuation at 78 times sales, suggests the market is pricing in near-perfect growth—a risky bet, especially when global economic pressures persist. For South African investors, the takeaway isn’t about chasing space tech but about being patient and cautious. The rand's recent volatility against the dollar (USD/ZAR) means foreign listings like SpaceX can feel even more expensive or cheaper in local terms, so timing matters. Instead of biting at inflated tech IPOs, investors might consider well-established JSE counters that offer tangible earnings and dividends, like Naspers or MTN, which have clearer earnings visibility. That said, if SpaceX delivers on future innovation or secures major contracts, valuations could jump again—though that’s a high-risk scenario. this is just my opinion and not financial advice
Wait on SpaceX or foreign tech IPOs until valuations normalize; lean on established JSE names like Naspers and MTN for now.
- USD/ZAR
- Naspers
- SpaceX may outperform and justify premium valuations
- Rand volatility could affect foreign asset returns
6/10
SpaceX stock has declined significantly since its IPO at $135, with a $10,000 investment now worth approximately $8,200. Despite shedding over 50% from its peak price of $225, the company maintains a $1.45 trillion market cap and trades at 78 times sales. The article suggests investors should wait for better entry points rather than buying at current valuations, recommending ETFs as a safer alternative.
This article was originally published by The Motley Fool and has been adapted here for Axe Capital Trading News.
Publisher: The Motley Fool
Author: Steven Porrello
Categories: Equities, Earnings, IPOs
Tickers: SPCX
Sentiment: Negative - The article highlights significant losses for IPO investors (-18% from IPO price, -50% from peak), describes the stock as 'overvalued' despite its decline, and notes it trades at expensive multiples (78x sales). The author recommends waiting for better entry points and suggests ETFs as a safer alternative, indicating lack of confidence in the stock at current valuations.
Keywords: SpaceX IPO, stock decline, valuation, market cap, investment returns, earnings report
Insights:
- SPCX: Negative: The article highlights significant losses for IPO investors (-18% from IPO price, -50% from peak), describes the stock as 'overvalued' despite its decline, and notes it trades at expensive multiples (78x sales). The author recommends waiting for better entry points and suggests ETFs as a safer alternative, indicating lack of confidence in the stock at current valuations.
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