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.
Axe note: SpaceX’s AI losses overshadow Starlink profits, making its high valuation risky for now.