Should You Buy SpaceX Stock in October?
2026-10-07 10:30
•Adam Spatacco •The Motley Fool
••••••• •••••• Axe Cap view
SpaceX IPO: Exciting but Tread Carefully
SpaceX’s ambitious growth in AI and space tech is impressive, but the $2 trillion valuation leaves little margin for error.
SpaceX is no longer just about rockets. Its recent AI infrastructure contracts with giants like Google and Anthropic point to a diversified, forward-looking business. The Starship launch milestone adds credibility to its long-term vision. But here’s the rub: at a $2 trillion valuation, much of this optimism is baked in. The firm still faces losses, and the big question is whether these contracts will turn into meaningful revenue soon. For South African investors, the direct play is limited since SpaceX isn’t on the JSE. However, Nvidia and Google’s involvement with SpaceX offers indirect exposure for those with USD/ZAR risk appetite. The rand’s weakness versus the dollar could add volatility if you chase global tech rebounds without caution. The safest path may be phased buying, avoiding big lumps just ahead of Q3 earnings. Markets often punish high expectations that don’t quickly translate into cash flow. this is just our opinion and not financial advice
Avoid jumping in heavily on SpaceX stock at its current valuation. Instead, consider small, regular purchases (dollar-cost averaging) if you want exposure through global tech counters like Nvidia, while monitoring USD/ZAR trends closely.
- USD/ZAR
- Nvidia (NVDA)
- Google (GOOG)
- SpaceX failing to convert contracts into sustainable revenue
- Rand volatility impacting offshore tech exposure returns
6/10
SpaceX has expanded significantly beyond rockets into AI infrastructure, with major compute contracts worth billions annually from companies like Reflection AI, Google, and Anthropic. Recent milestones include Starship reaching orbit and successful launch cadences. However, at a $2 trillion valuation, the stock may already reflect this growth. The author recommends dollar-cost averaging rather than chasing momentum ahead of Q3 earnings, as the company needs to demonstrate these contracts are translating into actual revenue and improved economics.
Our take is based on reporting first published by The Motley Fool.
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