If I Had $10,000 to Invest Today, Here's the Trillion-Dollar Stock I'd Buy Instead of SpaceX
SpaceX's sky-high valuation leaves very little room for positive returns in the near term.
Space Exploration Technologies (NASDAQ: SPCX), founded by Elon Musk in 2012, initially aimed to lower the cost of space travel but has since ventured into satellite connectivity and artificial intelligence industries. Following its IPO in June, the stock skyrocketed to $225, only to plummet by 32% and settle at $152.71 last Friday.
Despite this decline, SpaceX boasts a staggering market capitalization of $2.1 trillion. However, with merely $23 billion in revenue over the past four quarters, the stock trades at an eye-watering price-to-sales (P/S) ratio of 91, nearly 15 times the valuation of the technology-focused Nasdaq-100 index. This suggests that more downside risk may be on the horizon, so if one had $10,000 to invest today, an alternative option comes to mind.
Alphabet (NASDAQ: GOOGL) (NASDAQ: GOOG), the parent company of Google, could be a more prudent long-term investment choice.
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