Is SpaceX Stock Worth Buying While It's Below $140?
Key PointsArtificial intelligence (AI) is a massive part of SpaceX's business, which is why it can often trade like a tech stock.
SpaceX's stock has been on a downward trend, falling by 11% in October as investor confidence in artificial intelligence (AI) stocks wanes. Despite SpaceX's ambitious plans for Mars, space data centers, and AI leadership, the stock has dropped to below $140, close to its IPO price of $135. While Elon Musk's vision is inspiring, it's crucial to remember that these goals are not guaranteed and often take years to materialize.
Recently, The New York Times found that many of Musk's claims about his companies are difficult to verify, and when they are achieved, they're often delayed. SpaceX's operating profit from Q3 came from its Starlink connectivity business, while the space segment remains unprofitable. The Super Intelligence segment showed modest profitability, but the company invested $16.4 billion in AI, significantly more than its quarterly revenue of $14.6 billion.
This heavy investment in AI comes with risks, as the payoff is uncertain, and the company faces stiff competition and potential slowdowns due to rising interest rates. For risk-tolerant investors, SpaceX could be an enticing play, but for those seeking stability and steady returns, the volatility and high expectations surrounding the stock may prove too daunting.
Written by urgent.news from Motley Fool's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
This story
This is one outlet's version. Read the fullest account.
