HeaderSPCX

SpaceX: the long-term case, without the moon dust

Equities 5 minutes to read
Ruben Dalfovo
Ruben Dalfovo

Investment Strategist

Key takeaways

  • SpaceX combines rockets, satellite internet and artificial intelligence infrastructure in one unusually ambitious business.

  • The opportunity is large, but the valuation already prices in a lot of future success.

  • Long-term investors should focus on execution, cash flow, governance and whether Starlink keeps scaling.


SpaceX has always sounded like a company from tomorrow. Reusable rockets. Satellite internet. Mars. It is the sort of business that does not fit neatly into a normal financial model.

But for long-term investors, the question is more grounded. Is SpaceX a durable infrastructure company with several large growth engines, or is the market paying too much for a future that may take longer, cost more and arrive with more turbulence than expected?

The answer is probably: a bit of both.

A company with three engines

SpaceX is best understood as three businesses living under one roof.

The first is launch. SpaceX builds and launches rockets, helped by reusable technology that can lower the cost of reaching orbit. That matters because cheaper launches can create more demand, just as cheaper air travel once opened the world to more passengers. Space is still not Ryanair, thankfully for everyone’s legroom, but the direction is important.

The second engine is Starlink, the satellite internet business. Starlink provides broadband through satellites in low Earth orbit, meaning satellites that circle relatively close to the planet. This is the most understandable part of the investment case. It sells connectivity to households, businesses, ships, aircraft and governments. In plain English, Starlink turns SpaceX from a project company into something closer to a recurring revenue business.

That distinction matters. A rocket launch can be lumpy. A broadband subscription can repeat. For investors, repeating revenue is often easier to value than heroic engineering moments, however impressive they are.

The third engine is artificial intelligence, or AI, infrastructure. This is the most ambitious and least certain part. SpaceX has outlined ideas around AI, data centres and space-based computing. The potential market could be enormous, but much of it is still unproven. This is where investors need to separate “possible” from “probable”. Markets sometimes struggle with that distinction, especially when the word AI enters the room wearing sunglasses.

Why investors are excited

The bull case starts with scale. SpaceX already operates at a size few private companies ever reach. Its 2025 revenue was about 18.67 billion USD, up from 14.02 billion USD in 2024. That is strong growth for a company building hard, expensive things in the real world.

The second attraction is integration. SpaceX builds rockets, launches satellites and uses that launch capacity to support Starlink. This creates a flywheel. Better rockets lower launch costs. Lower launch costs help Starlink expand. A larger Starlink network can generate more cash. More cash can fund more rockets, satellites and new projects.

The third attraction is strategic importance. Space is no longer only about exploration. It touches communications, defence, navigation, climate monitoring and data. Governments care deeply about those areas. That can support demand, but it also brings political and regulatory scrutiny. When a business becomes strategically important, it gets attention from both customers and supervisors. One sends contracts. The other sends forms.

For the wider market, SpaceX also changes how investors think about the space economy. Public investors can now look at space less as science fiction and more as infrastructure. That may help suppliers in satellites, defence, semiconductors, connectivity equipment and data-centre technology. It may also raise the bar for everyone else. Once the largest player becomes public, smaller space companies no longer get valued only on dreams. They get compared with the adult in the room.

The risks are not small print

The first risk is valuation. A strong business can still be a poor investment if the entry price assumes perfection. SpaceX’s early public valuation already reflects huge expectations. That means the company may need years of strong execution simply to justify what investors are paying today.

The second risk is capital intensity. SpaceX spends heavily on rockets, satellites, AI infrastructure and long-term projects. These are not cheap experiments. The company reported a net loss in 2025, despite strong revenue growth. That does not make the business weak, but it reminds investors that growth and profit are not the same animal. One runs fast. The other pays the bills.

The third risk is execution. Starship, Starlink expansion and AI infrastructure all need progress at massive scale. Delays, technical setbacks, launch failures, regulation, spectrum limits or weaker customer demand could change the story quickly. There is also governance risk. Elon Musk remains central to the company’s identity and strategy. That can be a strength, but it increases key-person risk and can make the investment case more dependent on one individual than some investors prefer.

An investor playbook for a very unusual stock

  • Watch Starlink growth, churn and pricing. Recurring revenue is the cleanest proof point.
  • Track free cash flow, not only revenue. Cash generation shows whether scale is becoming financial strength.
  • Treat AI plans as upside until proven. Big ideas need contracts, margins and working technology.
  • Size exposure with humility. SpaceX may be exceptional, but exceptional stocks can still be volatile.

The future needs a seatbelt

SpaceX is one of the rare companies that can credibly talk about rockets, broadband, defence, AI and Mars in the same presentation without everyone leaving the room. That is exactly why it is fascinating. It is also why investors need discipline.

The long-term case is not only about believing in space. It is about watching whether SpaceX can turn engineering advantage into durable cash flow, and whether Starlink can carry enough of the financial weight while the more ambitious projects mature. The market has already paid a high price for tomorrow. For investors, the question is not whether SpaceX can imagine the future. It is whether it can turn an extraordinary vision into durable financial results.

This material is marketing content and should not be regarded as investment advice. Trading financial instruments carries risks and historic performance is not a guarantee of future results.

The instrument(s) referenced in this content may be issued by a partner, from whom Saxo receives promotional fees, payment or retrocessions. While Saxo may receive compensation from these partnerships, all content is created with the aim of providing clients with valuable information and options.

Outrageous Predictions 2026

01 /

  • Carry trade unwind brings USD/JPY to 100 and Japan’s next asset bubble

    Outrageous Predictions

    Carry trade unwind brings USD/JPY to 100 and Japan’s next asset bubble

    Charu Chanana

    Chief Investment Strategist

    A Trump-driven Fed pivot crashes the carry trade, hurling USD/JPY to 100 and unleashing Japan’s wild...
  • Drone taxis make Singapore skies the new causeways

    Outrageous Predictions

    Drone taxis make Singapore skies the new causeways

    Charu Chanana

    Chief Investment Strategist

    Singapore transforms regional travel with electric air taxis that replace causeways and ferries, tur...
  • A Fortune 500 company names an AI model as CEO

    Outrageous Predictions

    A Fortune 500 company names an AI model as CEO

    Charu Chanana

    Chief Investment Strategist

    Can AI be trusted to take over in the boardroom? With the right algorithms and balanced human oversi...
  • Dollar dominance challenged by Beijing’s golden yuan

    Outrageous Predictions

    Dollar dominance challenged by Beijing’s golden yuan

    Charu Chanana

    Chief Investment Strategist

    Beijing does an end-run around the US dollar, setting up a framework for settling trade in a neutral...
  • Dumb AI triggers trillion-dollar clean-up

    Outrageous Predictions

    Dumb AI triggers trillion-dollar clean-up

    Jacob Falkencrone

    Global Head of Investment Strategy

    Agentic AI systems are deployed across all sectors, and after a solid start, mistakes trigger a tril...
  • Quantum leap Q-Day arrives early, crashing crypto and destabilizing world finance

    Outrageous Predictions

    Quantum leap Q-Day arrives early, crashing crypto and destabilizing world finance

    Neil Wilson

    Investor Content Strategist

    A quantum computer cracks today’s digital security, bringing enough chaos with it that Bitcoin crash...
  • SpaceX announces an IPO, supercharging extraterrestrial markets

    Outrageous Predictions

    SpaceX announces an IPO, supercharging extraterrestrial markets

    John J. Hardy

    Global Head of Macro Strategy

    Financial markets go into orbit, to the moon and beyond as SpaceX expands rocket launches by orders-...
  • Taylor Swift-Kelce wedding spikes global growth

    Outrageous Predictions

    Taylor Swift-Kelce wedding spikes global growth

    John J. Hardy

    Global Head of Macro Strategy

    Next year’s most anticipated wedding inspires Gen Z to drop the doomscrolling and dial up the real w...
  • Executive Summary: Outrageous Predictions 2026

    Outrageous Predictions

    Executive Summary: Outrageous Predictions 2026

    Saxo Group

    Read Saxo's Outrageous Predictions for 2026, our latest batch of low probability, but high impact ev...
  • Despite concerns, U.S. 2026 mid-term elections proceed smoothly

    Outrageous Predictions

    Despite concerns, U.S. 2026 mid-term elections proceed smoothly

    John J. Hardy

    Global Head of Macro Strategy

    In spite of outstanding threats to the American democratic process, the US midterms come and go cord...

Disclaimer

The Saxo Group entities each provide execution-only service, and access to analysis permitting a person to view and/or use content available on or via the website is not intended to and does not change or expand on this. Such access and use are at all times subject to (i) The Terms of Use; (ii) Full Disclaimer; (iii) The Risk Warning; (iv) the Inspiration Disclaimer and (v) Notices applying to Trade Inspiration, Saxo News & Research and/or its content in addition (where relevant) to the terms governing the use of hyperlinks on the website of a member of the Saxo Group by which access to Saxo News & Research is gained. Such content is therefore provided as no more than information. In particular, no advice is intended to be provided or to be relied on as provided nor endorsed by any Saxo Group entity; nor is it to be construed as solicitation or an incentive provided to subscribe for or sell or purchase any financial instrument. All trading or investments you make must be pursuant to your own unprompted and informed self-directed decision. As such no Saxo Group entity will have or be liable for any losses that you may sustain as a result of any investment decision made in reliance on information which is available on Saxo News & Research or as a result of the use of the Saxo News & Research. Orders given and trades effected are deemed intended to be given or effected for the account of the customer with the Saxo Group entity operating in the jurisdiction in which the customer resides and/or with whom the customer opened and maintains his/her trading account. Saxo News & Research does not contain (and should not be construed as containing) financial, investment, tax or trading advice or advice of any sort offered, recommended or endorsed by Saxo Group and should not be construed as a record of our trading prices, or as an offer, incentive or solicitation for the subscription, sale or purchase in any financial instrument. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, would be considered as a marketing communication under relevant laws.

Please refer to our full disclaimer and notification on non-independent investment research for more details.

None of the information contained here constitutes an offer to purchase or sell a financial instrument, or to make any investments. Saxo Markets does not take into account your personal investment objectives or financial situation and makes no representation and assumes no liability as to the accuracy or completeness of the information nor for any loss arising from any investment made in reliance of this presentation. Any opinions made are subject to change and may be personal to the author. These may not necessarily reflect the opinion of Saxo Markets or its affiliates.

Saxo Markets
88 Market Street
CapitaSpring #31-01
Singapore 048948

Contact Saxo

Singapore
Singapore

Saxo Capital Markets Pte Ltd ('Saxo Markets') is a company authorised and regulated by the Monetary Authority of Singapore (MAS) [Co. Reg. No.: 200601141M ] and is a wholly owned subsidiary of Saxo Bank A/S, headquartered in Denmark. Please refer to our General Business Terms & Risk Warning to consider whether acquiring or continuing to hold financial products is suitable for you, prior to opening an account and investing in a financial product.

Trading in financial instruments carries various risks, and is not suitable for all investors. Please seek expert advice, and always ensure that you fully understand these risks before trading. Trading in leveraged products such as Margin FX products may result in your losses exceeding your initial deposits. Saxo Markets does not provide financial advice, any information available on this website is ‘general’ in nature and for informational purposes only. Saxo Markets does not take into account an individual’s needs, objectives or financial situation.

The Saxo trading platform has received numerous awards and recognition. For details of these awards and information on awards visit www.home.saxo/en-sg/about-us/awards.

The information or the products and services referred to on this website may be accessed worldwide, however is only intended for distribution to and use by recipients located in countries where such use does not constitute a violation of applicable legislation or regulations. Products and Services offered on this website are not intended for residents of the United States, Malaysia and Japan. Please click here to view our full disclaimer.

This advertisement has not been reviewed by the Monetary Authority of Singapore.

Apple and the Apple logo are trademarks of Apple Inc, registered in the US and other countries and regions. App Store is a service mark of Apple Inc. Google Play and the Google Play logo are trademarks of Google LLC.