Is SpaceX a Buy After Its Recent Dip? A Candid Assessment

Key Points

Space Exploration Technologies (NASDAQ: SPCX) debuted with enthusiasm among retail investors, allocating a larger-than-usual share of its IPO to non‑professional traders. The stock rose on its first day and posted a 23% gain over the first five trading sessions.

Since that peak, the share price has pulled back. Some of the decline reflects profit‑taking, while other portions suggest a broader rotation away from the name. SpaceX remains a high‑potential, innovative company, yet it carries notable risk.

Is SpaceX a buy right now on the dip? Here’s my candid take.

Image source: Getty Images.

The SpaceX story

SpaceX has been refining its launch capabilities for over two decades. Founded by Elon Musk in 2002 with the vision of lowering the cost of space access, the company now flies more than 85% of its missions with at least one reused booster. It is also preparing to launch its Starship vehicle with payloads to orbit later this year.

Beyond launch services, SpaceX operates two complementary businesses. Starlink, its satellite‑internet arm, has become the primary revenue driver, generating roughly $11 billion of the company’s $18 billion total revenue last year. Subscriber count has surged from 2.3 million in 2023 to over 10 million today, spanning customers worldwide.

The newer artificial‑intelligence division, created after the merger with xAI earlier this year, offers additional upside but also adds to expenses. To pursue ambitions such as orbital data centers, SpaceX must continue heavy capital investment. In 2025, AI‑related capex reached $12 billion, contributing to a net loss for the year.

A high‑growth phase

Following its record IPO that raised more than $85 billion, Musk described SpaceX as being in a high‑growth phase. The company issued senior unsecured notes to retire bridge financing and cover general‑purpose expenses.

Given its innovative portfolio and recent progress, many investors view SpaceX as a potential next‑big tech winner. However, sustaining ambitious goals requires continued heavy spending, which can delay profitability. The duration of this investment‑heavy phase is uncertain, especially as the AI build‑out remains in its early stages, suggesting that growth will likely be prioritized over immediate profits.

SpaceX’s reliance on new technology

Success hinges on the performance of emerging technologies. If key innovations falter, the company may miss its targets, which could affect earnings down the road.

Two primary risks stand out: substantial spending that may postpone profitability for a period, and possible technological setbacks that could hinder the achievement of investor expectations. Comfort with these factors is essential before considering an investment in SpaceX stock.

Should you buy stock in Space Exploration Technologies right now?

While SpaceX presents an intriguing growth story, I advise against rushing to purchase shares merely because the price has dipped. Instead, monitor upcoming earnings releases to gauge how the company’s heavy investments are translating into tangible growth. Other opportunities to buy on a dip may arise later.

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