SpaceX stock (NASDAQ: SPCX) has had a wild first few weeks as a public company.
The shares, priced at $135 in the company’s record June 12 IPO, surged to an intraday high of $225.64 by June 16, and then slid to around $153 by June 27.
That is a drop of roughly 32% from the peak, even though the stock is still above its IPO price.
SpaceX stock: Not necessarily a bargain
The first thing investors need to separate is price from value.
A stock falling 32% can feel cheap because it is no longer trading at its recent high. But that does not automatically mean the valuation makes sense.
As per market data, SpaceX was still trading at about 107 times 2025 sales after the pullback.
That is an extreme multiple, even by the standards of AI and space-infrastructure stocks. Nvidia, by comparison, recently traded at roughly 21 times sales.
The financial picture also shows why some investors are cautious. SpaceX lost $4.9 billion in 2025, even as revenue reached $18.7 billion.
The business is growing fast, led by Starlink and its launch dominance, but it is not yet profitable at the group level.
That is the core bear-case argument. SpaceX may be one of the most exciting companies ever to hit the public market, but the stock is still priced for years of huge execution wins.
Why Morningstar says wait
Morningstar’s Nicolas Owens has one of the clearest cautious views on the stock.
The analyst gave the company credit for its launch cost advantage, Starlink’s scale and the possibility of orbital AI infrastructure. It still comes out well below where the market is trading the stock.
Owens wrote that SpaceX shares are likely to look “overvalued in almost any scenario, at least in the near term”.
Morningstar also said long-term investors may get “more margin of safety” later, when lockups expire and more shares become available for sale.
That lockup point is important as SpaceX has a small public float, meaning only a limited portion of its shares can currently trade.
When supply is tight and demand is intense, prices can swing violently.
As more insider and employee shares become eligible for sale later this year, the market will get a better test of where natural demand really sits.
Bull case still standing
None of this means SpaceX is an empty story.
The company dominates the global space launch. As per analyst estimates, SpaceX launched 83% of the mass sent to orbit from Earth in 2025, nearly 10 times more than its nearest competitor.
Starlink is another pillar of the bull case. The satellite broadband business has become SpaceX’s clearest path to near-term cash generation, helped by its ability to launch satellites at in-house cost.
Starlink is expected to remain the company’s main cash-flow engine in the medium term, the analysts noted.
Index demand may also support the shares in the short term as SpaceX is being added to Russell indexes and will join the Nasdaq 100 on July 7, forcing passive funds that track those benchmarks to buy the stock.
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