SpaceX or Micron: If I Could Only Own One for the Next 5 Years, It Would Be This
Between a newly public rocket company with a volatile stock and a concentrated CEO, and a memory chip maker with $100 billion in contracted demand already locked in, here's why one is the easier buy-and-hold pick.
When forced to choose between investing in SpaceX or Micron Technology for the next five years, Micron Technology appears to be the more suitable choice. Despite SpaceX's remarkable achievements, such as reusable rockets and a profitable satellite internet business, the stock exhibits high volatility due to its dual-class share structure and the influence of Elon Musk.
SpaceX's IPO saw its stock price soar to nearly double its initial offering price before experiencing a significant downturn, creating considerable uncertainty for long-term investors. In contrast, Micron Technology has posted exceptional financial results, with revenue more than tripling since the prior year and signing numerous multi-year customer contracts guaranteeing substantial revenue streams for the foreseeable future.
Moreover, Micron pays a quarterly dividend, whereas SpaceX does not offer any dividends to its shareholders. Thus, Micron's business model and financial stability make it a more reliable investment option compared to SpaceX, which is subject to the whims of its CEO and exhibits significant stock price fluctuations.
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