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The SpaceX (NASDAQ:SPCX) share price has held up well recently despite fears of a post-lock-up sell-off. Currently around $140, it’s the same price as back in mid-July.
And since SpaceX’s first-ever quarterly results were published in early August, the stock has risen by over 10%. So it’s survived a couple of early tests.
That said, the share price does remain 37% lower than mid-June’s peak. Might this dip be a generational buying opportunity for long-term investors?
Has the ‘easy’ money been made?
A ‘generational buy’ will mean different things to different people. If I gain 25 times my money on a stock, some might consider that to be one. However, if I only originally commit £500, then the total would be £12,500.
That’s not a life-changing sum for most people. In SpaceX’s case, the really big money has already been made by early backers whose stakes have risen by an insane amount over the past two decades.
Today, the rocket company has a $1.9trn market cap, making it the sixth-largest in the US. Therefore, due to its massive valuation, it’s very unlikely this stock will go up 25 times in value. After all, that would put the valuation at almost $50trn — an implausible scenario, I feel.
A very rare company
That said, while I’m unlikely to make generational wealth from an investment today, SpaceX does appear to me to be a generational company. That is, a business so rare and significant that they only come along once in a blue moon.
How so? Well, nobody comes close to it in rocket launches. And this relentless cadence has enabled it to put over 11,000 Starlink satellites into orbit, more than seven times the nearest four competitors, including Amazon.
It has built this lead through its Falcon 9 workhorse rocket, which recently completed its 100th successful mission of 2026 by sending another 29 Starlink satellites into orbit. Remarkably, it was the 37th time the rocket’s first stage was reused.
And the Starship mega-rocket is set to quadruple payload capacity and reduce launch costs by 10 times due to being fully reusable. Starship will deliver the next-generation, significantly-more-powerful V3 Starlink satellites.
We expect to launch about an order of magnitude more Starlink V3 satellites. That would mean a roughly two order of magnitude increase in the delivered bandwidth...I think people are really underestimating Starlink here.
Elon Musk.
SpaceX is already lightyears ahead with Falcon 9 rockets and Starlink V2 satellites. Imagine what transitioning to V3 satellites via Starship could do!
We do not believe investors appreciate the scale of what SpaceX is planning with Starship.
Morgan Stanley.
What about valuation?
The main risk is that all this promise doesn’t translate into fast enough growth or profitability to justify today’s lofty valuation.
Also, Musk has basically committed to getting as many Nvidia AI chips as SpaceX can buy. So capital expenditure could get out of hand, putting pressure on the company’s finances even as revenue grows rapidly.
According to Morgan Stanley, the stock’s trading at 25 times 2028’s forecast operating profit. Certainly not cheap, but given the unique market opportunities converging around rocket launches, solar-powered orbital AI and Starlink, I’ve been buying the shares recently.
It may not produce true generational wealth, but I think SpaceX is worth taking seriously today.
Should you invest £5,000 in SpaceX right now?
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Ben McPoland owns shares in Nvidia and SpaceX.
This story originally appeared on Motley Fool
