Elon Musk's space transportation, satellite internet connectivity, and artificial intelligence (AI) infrastructure company, Space Exploration Technologies (NASDAQ: SPCX), went public on June 12 with an opening price of $150 that day. In the days that followed, stock quickly rallied to an all-time high of $225.64, resulting in a market capitalization of almost $3 trillion.
However, as of the market close on Thursday, July 16, SpaceX stock was down 45% to just $125 as of mid-afternoon Friday. Although Wall Street is forecasting significant revenue growth for the company, its stock continues to trade at a sky-high valuation, which could lead to further volatility from here.
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »
Should retail investors take this opportunity to buy the dip, or would they be better advised to steer clear?
Elon Musk founded SpaceX in 2002 with a clear mission to make the human race interplanetary, but in the years since, it has expanded its focus. The company went on to develop the world's first reusable rocket, which dramatically lowered the cost of launching humans and commercial payloads into orbit, and also reduced the downtime between launches.
The Falcon 9 rocket is responsible for most of SpaceX's successful launches to date, but its Falcon Heavy and Starship rockets have much higher payload capacities. This means they can carry more satellites (and eventually humans) into space per trip, further reducing costs. Starship is expected to enter regular service in a couple of years with a payload capacity of 100 tons, whereas Falcon 9 can carry a maximum of 23 tons.
However, launching astronauts and commercial payloads into space is actually SpaceX's least valuable business, with an addressable market of around $370 billion. The company's satellite internet connectivity segment is capturing a slice of a much larger opportunity worth $1.6 trillion. So far, SpaceX has sent over 9,600 of its Starlink satellites into orbit, where they provide wireless broadband internet access to 10.3 million paying customers here on Earth.
The company will start launching its new V3 satellites later this year, which will offer 10 times the bandwidth of its current V2 satellites. This is where Starship will become especially valuable, because it can deploy 60 satellites at a time, whereas Falcon 9 has a maximum capacity of just 27.
Source: Yahoo Finance Top News — This article was automatically imported from the source. Read full article at original source →
