Market Cap Overtakes Tesla, Meta...Will SpaceX (SPCX) Prove Its $1.48 Trillion Valuation?

▲ SpaceX (SPCX), Nasdaq, IPO/AI generated image

SpaceX (SPCX) has surpassed Tesla and Meta with a market capitalization of $1.48 trillion. However, its revenue size and growth rate fell short of the top 7 large US tech stocks. Its price-to-sales ratio also reached 77 times, putting it in a position where it must prove its high valuation.

According to Nasdaq on August 2 (local time), SpaceX was officially included in the Nasdaq 100 on July 7. Even the index regulations were changed for its rapid inclusion. Since its inclusion, the S&P500 has fallen by 2% and the Nasdaq 100 by 7%. SpaceX's stock price dropped by 25% during the same period.

SpaceX initially planned to raise $75 billion during its IPO process. Due to strong demand, underwriters exercised over-allotment options, increasing the amount raised to $86 billion. The company's valuation at the time of the IPO was $2 trillion.

Revenue for the recent 12 months was only $19 billion. The revenue of the top 7 large US tech stocks during the same period ranged from $104 billion to $743 billion. SpaceX's price-to-sales ratio was 77 times, significantly exceeding these companies' ratios of 3 to 19 times. Its recent quarterly revenue growth rate was also 15%, lower than Apple's (AAPL) 16%.

Wall Street projected SpaceX's revenue to increase by 87% from $39 billion in 2026 to $73 billion in 2027. Goldman Sachs predicted that AI revenue would increase 100-fold by 2030. Morgan Stanley estimated 2040 revenue at $3.4 trillion.

Profitability remains a challenge to be solved. While Starlink is generating net income, SpaceX's net loss in the first quarter exceeded $4 billion. Wall Street projected earnings per share of $0.08 for the third quarter. It is expected to record a loss of $0.55 per share in 2026, then turn to earnings per share of $0.65 in 2027. After acquiring xAI, SpaceX operates rocket launches, satellite internet, and artificial intelligence businesses. A Nasdaq article assessed that if it fails to prove long-term growth and profitability, the gap with large tech stocks could widen again.

[Article Key Summary]

-SpaceX's market capitalization surpassed Meta and Tesla at $1.48 trillion.

-Recent 12-month revenue was $19 billion, and the price-to-sales ratio reached 77 times.

-With a net loss exceeding $4 billion in the first quarter, proving growth and profitability to support its high valuation remains a challenge.

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