SpaceX Just Posted Its First Profitable Quarter. Is Now the Time to Buy the Stock?

SpaceX reached a significant milestone this quarter, becoming the first publicly traded company to turn a profit. During Q3, the company generated $0.35 in earnings per share, marking positive operating income boosted by various factors. While SpaceX's space segment, which includes rocket and satellite launches, was the smallest and only unprofitable segment in Q3, generating only $1.8 billion in revenue, its connectivity and Super Intelligence (SI) divisions proved highly successful.

Connectivity, primarily driven by SpaceX's Starlink internet service, experienced a 69% year-over-year growth and delivered a strong 45% operating margin. Super Intelligence, SpaceX's AI division, saw an incredible 830% growth in revenue, growing from $813 million to $7.56 billion, and generated $431 million in operating income.

Despite the AI division's astonishing growth, SpaceX has made substantial capital expenditures, investing $16.4 billion in its SI division alone, demonstrating faith in its AI capabilities. However, priced at about $160 per share following the profitable quarter, the stock remains highly valued. With a flat stock price, an annualized earnings per share of $0.35 would price the stock at around 114 times earnings, significantly higher than most big tech stocks, which trade around 30 times earnings.

While SpaceX shows promising growth and potential, it remains a somewhat polarizing stock. If you believe in SpaceX's future, the data suggests that buying the stock and holding it for the long term could be a worthwhile investment.