SpaceX Has Fallen 45% Since Its Peak: Gary Black Says Investors Are Breaking the ‘Number One Rule in Inve
‘Don’t Conflate A Great Business With A Great Stock’
He said SpaceX’s roughly $1.7 trillion market capitalization “shouldn’t mathematically” command a forward enterprise value-to-revenue multiple of about 40 times, calling it a valuation with no historical precedent among trillion-dollar companies.
Black Compares SpaceX With Nvidia, Tesla And Other Mega-Caps
According to the response, NVIDIA’s trailing EV-to-revenue multiple briefly approached 45 times.
Still, its forward multiple generally remained between 10 and 25 times as revenue growth accelerated.
Bulls And Bears Remain Divided on SpaceX
Black has consistently maintained that SpaceX’s valuation leaves little room for upside, saying last week that the IPO should not have been priced at $135 and that he would not get excited about the stock until it trades below $100.
Investors are now looking ahead to SpaceX’s first earnings report as a public company, expected around August 17 or earlier, followed by the expiration of the IPO lockup period, both of which are expected to be the next major catalysts for the stock.
Price Action: SPCX closed 5.43% lower on Friday at $123.99 and edged marginally higher at 0.12% in extended trading.
Benzinga edge rankings indicate SPCX has a negative price trend across the short, medium and long term.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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