Here's Why I'm Not Buying SpaceX Stock Quite Yet

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SpaceX is excessively costly

On the surface, a terms of $135 per stock doesn't look that expensive, but that's not the point. What truly matters with immoderate banal is its valuation. While investors don't person a afloat year's worthy of SpaceX's nationalist results to look astatine yet, we bash person immoderate estimates astir however it volition execute this year. The statement among Wall Street analysts covering the institution is that it volition make astir $44.25 cardinal successful gross during 2026.

SpaceX isn't profitable, truthful the price-to-sales ratio is the champion valuation measurement investors tin usage to measurement the stock, and based connected that gross estimate, its guardant price-to-sales ratio is 41. Most investors would telephone a banal trading astatine 41 times earnings expensive, fto unsocial sales.

For reference, immoderate of the largest companies successful the satellite commercialized astatine acold little price-to-earnings ratios.

This shows however costly SpaceX banal is, which is 1 of the reasons wherefore I'm avoiding it for now.

Another crushed is that the lockup periods preventing pre-IPO insiders from selling their shares volition extremity successful phases passim the coming year. Those aboriginal shareholders volition beryllium permitted to merchantability ever-growing fractions of their holdings arsenic a acceptable of cardinal dates pass. The past of those dates volition travel 1 twelvemonth aft the IPO, erstwhile CEO Elon Musk (the company's largest shareholder) volition yet beryllium allowed to commencement selling immoderate of his ain shares -- if helium chooses.

In the meantime, the phased extremity of the lockup could messiness with the supply-and-demand dynamic for the stock, arsenic a increasing interval of disposable shares could conscionable lackluster request and crater the banal price. Earlier this month, the archetypal of the lockup periods ended and the banal terms did not tank, truthful this contented whitethorn not person a large interaction connected the shares aft all, but I inactive deliberation it's a hazard that investors should support successful mind.