Space Exploration Technologies (NASDAQ: SPCX), also known as SpaceX, just had the largest IPO in history and turned Elon Musk into the world’s first trillionaire.
However, that doesn’t mean investors should rush to buy the stock
As of Tuesday morning, the company — which remains unprofitable — had a price-to-sales ratio of around 130. That’s a fairly high premium to pay. Luckily, you can choose from among many other growth stocks that have more reasonable valuations and enticing growth prospects.
For example, these three megacap tech companies all make more sense to add to your portfolio than SpaceX’s stock at current levels. Nvidia Nvidia (NASDAQ: NVDA) isn’t exactly the world’s biggest secret as an investment. It’s the most valuable company by market cap, and its AI chips have fueled the entire AI boom.