Space Exploration Technologies (NASDAQ: SPCX) isn’t a cheap stock by any means.
At over $2 trillion in market cap, it’s among the most valuable companies in the world
But many people who buy the stock, which also goes by just SpaceX, buy it for its long-term goals and the opportunities in space and artificial intelligence. SpaceX stock has a lot of promise and long-term potential. And as long as investors are optimistic about the company’s growth and its path forward, it can continue rising higher, despite its valuation.
That’s why I don’t think the biggest risk with owning the stock is necessarily its price, but the company falling short of expectations. Elon Musk has a concerning track record SpaceX CEO Elon Musk is no stranger to making bold and ambitious claims. The problem, however, is that they can be far too optimistic.