Tempted To Buy the SpaceX IPO? This Is The Smarter Stock To Buy
SpaceX is set to go public with a potential valuation of up to $2 trillion, but its high price-to-sales ratio may make Amazon a more attractive investment alternative. Amazon's satellite internet division, Project Kuiper, is a competitor to SpaceX's Starlink and has shown significant investment and growth potential.
SpaceX filed confidentially to go public in early April, targeting a valuation of up to $2 trillion. With a revenue of $15.5 billion-$16 billion last year, SpaceX's price-to-sales ratio could exceed 100, making it more expensive than any S&P 500 stock. Amazon is considered a better investment alternative due to its satellite internet division, Project Kuiper, which is Starlink's closest competitor. Amazon has launched hundreds of satellites and is testing its service, with JetBlue set to be the first airline to use it for in-flight Wi-Fi next year. Amazon has also invested $8 billion in Anthropic and has a deal to invest $5 billion more, with up to $20 billion in the future. Amazon's market cap is $2.8 trillion, and it trades at a price-to-earnings ratio of 36, making it a more attractive investment option.
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