If I Had $10,000 to Invest Today, Here’s the Growth Stock I’d Buy Instead of SpaceX
Elon Musk’s Space Exploration Technologies (NASDAQ: SPCX) went public in June. Investors were initially very optimistic about the company’s space transportation, satellite internet connectivity, and artificial intelligence businesses, so they piled into its stock, which sent it soaring to a peak of $225. However, it has since plummeted by 34% and closed at $148.68 last Friday, Sept. 25.
But SpaceX is still expensive. Based on the company’s hefty market capitalization of $2.02 trillion and its trailing-12-month revenue of $23 billion, its stock is trading at a price-to-sales (P/S) ratio of 87, making it 13 times as expensive as the technology-heavy Nasdaq-100 index.
As a result, more downside might be ahead for SpaceX stock, so if I had $10,000 to invest today, I’d probably look elsewhere. I think Netflix (NASDAQ: NFLX) could perform better over the long term thanks to its robust streaming business and attractive valuation. Read on.
Source: www.fool.com — article syndicated from the publisher’s feed; all rights remain with the original publisher.