Seeking Alpha says SpaceX remains above IPO price despite volatility

Share price and trading backdrop

According to Seeking Alpha, SpaceX (SPCX) has had a volatile run, rising by almost double digits before dropping back down. The article says that after this swing, the stock is still only in the single digits above its IPO price. It also says the float has continued to expand.

Valuation concerns

Seeking Alpha says the shares trade at about 180 times earnings. The article frames this valuation as being supported by growth in the company’s neocloud and connectivity businesses, but it argues that the growth comes with significant capital spending. The summary also says this sets up a large gap between the stock’s price and the business fundamentals described in the article.

Core space business

The article says SpaceX’s core space segment is showing only marginal growth. It also says that segment continues to post losses. On that basis, Seeking Alpha presents the company’s traditional space operations as weaker than the market price might suggest.

Connectivity and cellular operations

Seeking Alpha says the connectivity and cellular segments are producing strong revenue growth. At the same time, the article says these businesses require heavy capital investment and face operational risks. It also says competition is increasing, both from established carriers and from newer entrants.

Additional risks and author position

The article says stock-based compensation adds to dilution pressure. It also highlights geopolitical risk, particularly related to Ukraine, as a strategic vulnerability. In the disclosure section, the author says they have a beneficial short position in SPCX through stock ownership, options, or other derivatives and that the article reflects their own opinions.