Key Points

SpaceX shares debuted on the public market Friday, June 12, finishing the session with a market capitalization of $2.1 trillion.
The firm operates across three primary revenue streams: space launches, connectivity services, and artificial intelligence solutions.
Analysts project strong revenue expansion ahead, yet the elevated valuation leaves this observer cautious about entering now.

SpaceX (NASDAQ: SPCX) began trading publicly on Friday, June 12, posting a 19 percent advance by the close. Its market value stood at $2.1 trillion, ranking it as the seventh-largest company globally by that measure.

Although SpaceX is recognized for pioneering reusable rocket technology, leadership views space operations as the smallest long-term revenue driver. Greater potential lies in connectivity and AI offerings, both of which already generate commercial traction.

Even so, current revenue remains modest compared with the company's substantial market capitalization, creating an uneven balance of risk and reward. That imbalance explains the decision to avoid purchasing shares at present.

Image source: The Motley Fool.

Breakdown of SpaceX Operations

SpaceX structures its activities around three main areas:

Space: Falcon 9, Falcon Heavy, and Starship vehicles deliver satellites and commercial payloads for corporate and governmental clients.
Connectivity: More than 9,600 Starlink satellites supply internet service to over 10.3 million subscribers worldwide.
Artificial intelligence: Following the February acquisition of xAI, the combined entity runs large-scale data centers to develop models such as Grok while leasing excess capacity to partners including Anthropic and Alphabet.

Management assigns a $370 billion addressable market to the space segment, a $1.6 trillion opportunity to connectivity, and a $26.5 trillion potential market to AI.

SpaceX already accounts for more than 80 percent of global mass launched into orbit, outpacing all rivals by a wide margin. Starship's 100-metric-ton payload capacity, over four times that of Falcon 9, should widen this lead further.

On the connectivity front, V3 satellites scheduled for launch later this year will deliver more than ten times the bandwidth of the current V2 series. Starship will also enable batches of up to 60 V3 satellites per flight versus 27 on Falcon 9.

The AI segment earns revenue chiefly through Grok subscriptions and data-center capacity leases. The xAI acquisition brought facilities such as Colossus and Colossus II, which contain hundreds of thousands of GPUs supplied in part by Nvidia.

Future plans include placing AI clusters in orbit to operate on solar power without water-intensive cooling systems, with data relayed to Earth via Starlink for a distinct competitive edge.

Revenue Expansion and Valuation Concerns

SpaceX recorded $18.7 billion in revenue for 2025, marking 33 percent growth from the prior year. Segment results were as follows:

Business Segment	Revenue	Year-Over-Year Growth
Space	$4.1 Billion	8%
Connectivity	$11.4 Billion	50%
AI	$3.2 Billion	22%

Connectivity led both in size and growth rate last year. Momentum could shift, however, with an existing agreement to provide Anthropic $1.25 billion in monthly computing capacity and a separate pact with Alphabet for $920 million per month beginning in October. Those two contracts alone could generate $26 billion in annualized AI revenue.

Wall Street therefore anticipates up to $64.5 billion in total revenue for 2027, more than tripling the 2025 figure. Even at that level the stock would trade at a forward price-to-sales ratio of 32.5.

By comparison, the Nasdaq-100 technology index currently carries a price-to-sales multiple of 6.8, near historic highs. This gap implies SpaceX may be priced richly relative to large technology peers.

While the underlying narrative appears constructive, the valuation prices in flawless execution. Meeting the 2027 revenue target would still leave the shares expensive, capping further gains. Shortfalls versus expectations could trigger a steep pullback. Such a profile does not present an appealing risk-reward setup, so shares are not being purchased at this time.

Evaluating an Investment in Space Exploration Technologies

Prior to committing capital to Space Exploration Technologies, investors should weigh additional considerations.

Independent research teams have identified ten equities they regard as the strongest opportunities for purchase today, and Space Exploration Technologies did not appear on that list. The selected names are viewed as having potential for substantial returns over the coming years.

Historical examples illustrate the impact of timely selections: an investment tied to Netflix in late 2004 or Nvidia in 2005 would have produced outsized gains. Broader portfolios following similar guidance have delivered average returns of 935 percent, surpassing the S&P 500's 207 percent over comparable periods.

Latest recommendations are available through established investment services designed for individual participants.

*Performance data as of June 15, 2026.

Anthony Di Pizio holds no positions in the securities discussed. The Motley Fool maintains holdings in and endorses Alphabet and Nvidia. A standard disclosure policy applies.

The perspectives presented are those of the author and may not align with the positions of Nasdaq, Inc.