If I Had $5,000 to Invest Today, Here's the Trillion-Dollar Stock I'd Buy Instead of SpaceX
This company is attacking the artificial intelligence opportunity from multiple angles.
Elon Musk's Space Exploration Technologies, trading under the NASDAQ symbol SPCX, debuted publicly in June. Investor enthusiasm propelled its stock price to a peak of $225. However, this optimistic beginning faded, and the stock has since plummeted by 29% to $158.96, according to the market close on October 2. The valuation appears to be the reason behind this decline.
SpaceX boasts a market capitalization of $2.1 trillion. With a trailing 12-month revenue of $23 billion, the stock trades at a price-to-sales (P/S) ratio of 94, which is 14 times more expensive than the technology-focused Nasdaq-100 index. Despite management's prediction of substantial revenue growth in the coming years, potential short-term downside for SpaceX stock looms.
Value investors might consider other investment options for better returns. If I had $5,000 to invest in a single stock today, I believe Microsoft (NASDAQ: MSFT) would be a superior choice.
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