Morningstar IncMORN
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Morningstar IncSpace Economy
Morningstar IncSpaceX shares have fallen about 32% from their post-IPO high of $225.64 to around $153, raising the question of whether the pullback is a buying opportunity. The company grew revenue 33% in 2025 to $18.7 billion, led by its Starlink satellite internet business which generated $11.4 billion in revenue and $4.4 billion in operating profit. However, overall SpaceX posted a net loss of $4.9 billion for the year, weighed down by spending on its Starship rocket and the absorbed xAI artificial intelligence segment. Even after the decline, the stock trades at a market capitalization above $2 trillion and a price-to-sales ratio of more than 100, which Morningstar considers significantly overvalued relative to its fair value estimate of about $780 billion. The author believes the business has strong long-term prospects but finds the current valuation impossible to justify, and will remain on the sidelines.
Morningstar Inc