Space Exploration Technologies Corp (NASDAQ: SPCX) captivated the market when it went public back in June.
And while it’s down considerably from its peak, its valuation remains massive at around $1.4 trillion as of the end of last week
Growth opportunities in not only space but also artificial intelligence (AI) as a whole have investors excited about its potential. However, there will inevitably be considerable volatility in the stock. The company, better known as SpaceX, isn’t profitable and is burning through a ton of cash as it invests in its future growth opportunities.
A better option for investors may simply be to invest in a top tech company that already holds a large position in SpaceX: Alphabet (NASDAQ: GOOG)(NASDAQ: GOOGL). Alphabet owns a considerable amount of SpaceX shares When Alphabet reported earnings last month, one of the large, eye-popping figures was just how much of a gain it posted from its investments — more than $99 billion. To put into context how massive that is, consider that its core operating income was just $41 billion.