If I Had $5,000 to Invest Today, Here's the Trillion-Dollar Stock I'd Buy Instead of SpaceX
Key PointsSpace Exploration Technologies (SpaceX) stock recently peaked at $225, but it has since lost 29% of its value.
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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