If I Had $10,000 to Invest Today, Here's the Growth Stock I'd Buy Instead of SpaceX
2026-10-01 07:29
•Anthony Di Pizio •The Motley Fool
•• •••• Axe Cap view
Why Netflix Beats SpaceX as a Growth Pick Today
Netflix’s reasonable valuation and growth path make it a smarter choice than the overheated SpaceX IPO.
SpaceX’s current valuation feels more like speculation than investment. Trading at a price-to-sales ratio near 87, it’s priced as if its future cash flows will be unlike any tech or industrial company we’ve seen. Contrast that with Netflix, which trades at a more grounded P/S of 6.2 and a P/E of 22.4. Yes, streaming is competitive, but Netflix has a massive subscriber base and is still under-penetrated globally. Their advertising segment is expected to double by 2026, giving them a solid growth runway. For South African investors with limited direct exposure to fast-growing US tech, watching USD/ZAR is crucial here. A weak rand amplifies the local cost of accessing these stocks but also boosts dollar-earning counters like Naspers or Prosus, which have significant Netflix-like growth exposure via their tech holdings. The risk? A global growth slowdown or regulatory clampdowns in ad tech could dampen Netflix’s story. this is just our opinion and not financial advice
I’d allocate new growth capital towards Prosus for exposure to Netflix and global digital growth while watching USD/ZAR to manage currency risks. Avoid direct exposure to SpaceX at these frothy levels.
- Prosus
- USD/ZAR
- global growth slowdown
- regulatory changes in digital advertising
7/10
SpaceX has lost 34% from its peak since going public in June and trades at an expensive P/S ratio of 87, suggesting further downside. Netflix, with a P/S ratio of 6.2 and P/E of 22.4, offers better value and growth potential, having captured only 7% of its $670 billion addressable market. The streaming giant's advertising business is expected to double to $3 billion by 2026, positioning it as a more attractive long-term investment.
Our take is based on reporting first published by The Motley Fool.