If I Had $5,000 to Invest Today, Here's the Trillion-Dollar Stock I'd Buy Instead of SpaceX
2026-10-07 10:07
•Anthony Di Pizio •The Motley Fool
•••••• •• Axe Cap view
Why Microsoft Beats SpaceX for Your $5,000 Today
SpaceX looks pricey and shaky; Microsoft’s AI cloud growth feels solid and more reliable.
SpaceX’s steep 29% drop from its peak and an eye-watering price-to-sales ratio near 94 screams overvaluation. For South African investors, that’s a red flag, especially since there’s no easy way to buy SpaceX shares locally, and the Rand’s recent weakness only amplifies such volatility. Meanwhile, Microsoft is trading at a far more reasonable multiple, with its price-to-sales ratio at 11.6 and a price-to-earnings ratio under 30, well below its five-year average. Its success with AI enterprise tools like Copilot and the booming Azure cloud business — up 43% last quarter — translates globally. For JSE investors, Microsoft exposure via offshore funds or through gains in the USD/ZAR exchange could be a more dependable play on AI and cloud trends. That said, if global tech regulation tightens or AI adoption slows, Microsoft’s lofty multiples could also face pressure. this is just our opinion and not financial advice
Prefer buying Microsoft through international funds or ETFs and tactically watch the USD/ZAR for better entry points. Avoid any high-flying, private tech plays like SpaceX given their valuation risk and lack of liquidity locally.
- MSFT
- USD/ZAR
- regulatory crackdown on AI and cloud services
- sharp USD/ZAR moves impacting returns
6/10
SpaceX stock has declined 29% from its peak and trades at an expensive P/S ratio of 94, suggesting potential further downside. Microsoft is presented as a better investment alternative, trading at a more reasonable valuation (P/S of 11.6, P/E of 28.8) while benefiting from dominant positions in enterprise AI through Copilot and Azure cloud services, which is experiencing accelerating growth at 43% in Q4.
Our take is based on reporting first published by The Motley Fool.