Analyst warns against bottom-fishing SpaceX at 85x price-to-sales despite a 48% drop from its IPO price.
SpaceX shares have fallen 48% from their $135 IPO price, trading at 85 times price-to-sales, one of the highest valuations for a large-cap stock. The decline follows broader market skepticism over the company’s aggressive spending on AI and space infrastructure initiatives.
Despite the drop, shares recently surged 16% in a single session, highlighting extreme volatility. The stock had initially traded near $160 on its first day before retreating. Analysts caution that even at reduced levels, the valuation remains stretched relative to fundamentals.
Investors face a dilemma: betting on long-term space innovation or avoiding a stock still priced at a premium despite its correction. Deutsche Bank previously dubbed SpaceX a potential ‘haloscaler,’ but near-term risks persist.