Prediction: Here’s What a $1,000 Investment in SpaceX Stock Could Be Worth in 2031
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Space Exploration Technologies (NASDAQ: SPCX), better known as SpaceX, has had a bumpy takeoff since its IPO. After rocketing higher to $225 per share within days of its $135 initial public offering, the stock fell more than 50% over the following weeks. It now trades around $150 per share, but still exhibits considerable volatility.
In the near term, the stock could face significant pressure as insiders and early investors sell additional shares. Most shares, except those owned by Elon Musk, will unlock by the end of the year, but some will remain locked until next summer. Musk’s shares unlock a year after the IPO, but the CEO has said he has no intention of selling any of his stake.
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In the long run, the stock price will be determined by the company’s ability to generate revenue and profits. And the potential is high. That’s why the stock currently garners a price-to-sales ratio close to 100.
The next five years could prove critical for SpaceX bulls. Here’s how much a $1,000 investment in the stock today could be worth by 2031.
Can SpaceX reach $1 trillion in revenue within five years?
During SpaceX’s second-quarter earnings call, Musk said the company updated its revenue growth timeline. It now expects to reach $1 trillion in annual revenue by 2030. Considering the business generated just over $20 billion in revenue over the past four quarters, that would be absolutely remarkable growth.
Driving that growth is SpaceX’s AI segment, and most of the revenue growth there stems from renting out compute capacity. It’s signed deals with Anthropic, Alphabet, Reflection AI, and an additional undisclosed <a href="https://bitcomme.com/customer-engagement-is-bankings-new-battleground/” title=”Customer Engagement Is Banking’s New Battleground”>customer. Management expects to sign many more of these deals over time as it expands its compute capacity.
To that end, management says it can stand up new data centers and servers extremely quickly. It expects to end the year with 2 gigawatts of capacity and to end next year with “closer to 10 gigawatts of compute than 5 gigawatts of compute,” Musk told investors.
CFO Bret Johnsen also shared, “The current economics have translated into a less than one-year payback on our new capital deployments for compute.” Whether that refers to total capital (including structures) or just the cost of new servers, it’s still an incredibly high rate of return.
