A $3.5 Trillion Reason to Buy SpaceX Stock Today

On Friday, SpaceX (SPCX) shares garnered attention after CEO Elon Musk shared a highly optimistic revenue forecast for the company. Musk believes SpaceX could generate approximately $3.5 trillion in annual revenue by 2033, which is seven years ahead of Morgan Stanley's estimate. Currently, SpaceX stock is trading at a 30% discount to its year-to-date high.

Musk's forecast is significantly more bullish than the company's actual revenue in 2025, which was about $18.7 billion. While SpaceX's future revenue growth is driven by various factors including rockets, satellite internet, and AI infrastructure, the company's plans for a $100 billion Louisiana Starbase and substantial investment in AI infrastructure play a crucial role in his prediction.

Recent financial results reinforce the bullish thesis. In the latest quarter, SpaceX's revenue skyrocketed by 92% year-over-year, reaching $7.8 billion, well surpassing Wall Street's estimate of $6.9 billion. Additionally, Starlink's subscriber base has hit 12 million, indicating growing demand for the company's satellite internet services.

However, SpaceX's stock remains expensive with a price-to-sales (P/S) ratio of around 97x. Despite this, other Wall Street firms have recommended buying SPCX stock, with a consensus rating of "Moderate Buy" and a mean price target of $218, suggesting a potential upside of more than 50% over the next 12 months.