Is it still advisable to buy SpaceX?

By: Kaustav Basu (Chief Editor)

The Financial markets often reflect investor confidence in a nation’s economic outlook. Global financial markets have once again demonstrated their resilience and demonstrated their remarkable elasticity. After months of uncertainty, stock indices across the US market and Asia have rebounded strongly, driven largely by renewed investor confidence in artificial intelligence. The recent historic boom in SpaceX IPO proved again how investors are reacting to the AI market.

The red hot Space Exploration Technologies (NASDAQ:SPCX) didn’t quite seem to keep the high expectation. Surging to as high as $200 a share to crashing below 150. With big bets and high confidence from the owner itself stock gave an initial momentum which does lure investor to get a pie of the profit.  The current AI revolution also adds to the rapid growth of the company.

But then come the big question: Is it still advisable to buy SpaceX?

We tried to find the answer in 3 parts: The Bearish / Fundamental View, The Moderate / Post-Earnings View and the bullish or the post earning view.

1: The fundamental view: As per Morningstar analysis SpaceX is overvalued. The independent and equity research methodology from Morningstar weighs this share against the prevailing market price. Next comes the Risk profile, many experts find the enormous capital needed to run this deep space exploration, heavy infrastructure deployment and the Mars runs itself is a gigantic project and is tied to an individual person’s ambition, Elon Mask himself draws the key public perception.

2: The Post-Earnings View: The report published by The Motely Fool questions how big is the market appetite for the risk? As per the analysis the questions arise is the ground reality is same as the big promise made by the company? Considering the not so superfast growth of the company and the big future picture may not be enough for institutional investment strategy.

3: The bullish view: As per Billionaire investors Ron Baron who sees a promising future for the company valuing at $30 trillion in next 10-20 years making each share valuing at $3050 which is 16tims more than todays valuation.

Takeaway

With a long list of upcoming projects from moonshot to actual interplanetary colonization SpaceX will need massive investment and probably come to dilution to the stock holders. Investors need to understand not only the financial market but also the geo political scenario which might and will affect next 10-20 years before investing a fortune on SpaceX

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