Alphabet Inc Class CAlphabet's deal with SpaceX for computing capacity is mentioned as a short-term gain, but long-term margin pressure from hyperscalers building own infrastructure.
SpaceX shares could decline by 50% or more before the end of the year, according to a Motley Fool analysis. The company went public on June 12 at $135 per share, reaching a market cap of $1.77 trillion, and has since settled around $185. Despite a 33% year-over-year revenue increase to $18.7 billion in 2025, its price-to-sales ratio of 125 far exceeds the S&P 500 average of 3.7. The report argues that the valuation is driven by speculative bets on generative AI rather than its core space business, noting that its AI subsidiary xAI's Grok model holds less than 5% market share compared to ChatGPT's 46.4% and Gemini's 27.7%. A recent deal with Alphabet to provide computing capacity for $920 million monthly may offer short-term gains but faces long-term margin pressure as hyperscalers build their own infrastructure.
Alphabet Inc Class CAlphabet's deal with SpaceX for computing capacity is mentioned as a short-term gain, but long-term margin pressure from hyperscalers building own infrastructure.
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Space Exploration Technologies Corp. Class A Common StockMotley Fool analysis predicts 50% decline due to overvaluation (125x P/S) and speculative AI bets, with xAI's Grok having low market share.
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