Updated
Updated · The Motley Fool · Jun 14
Analyst Backs 3 Stocks Over SpaceX as $1.75 Trillion Valuation Stretches
Updated
Updated · The Motley Fool · Jun 14

Analyst Backs 3 Stocks Over SpaceX as $1.75 Trillion Valuation Stretches

3 articles · Updated · The Motley Fool · Jun 14

Summary

  • $1.75 trillion SpaceX valuation led a Motley Fool analyst to favor Amazon, Meta Platforms and Nebius as better long-term buys.
  • Amazon stood out for scale: management plans $200 billion in 2026 data-center capex, versus SpaceX's $20.7 billion in 2025, with AWS already contributing 59% of first-quarter operating profit.
  • Meta was pitched on price, trading at 21 times trailing earnings and 18 times forward earnings even after 33% quarterly revenue growth, roughly matching SpaceX's 2025 growth rate.
  • Nebius was the growth pick after first-quarter revenue jumped 684%; it targets $7 billion to $9 billion in annual recurring revenue by end-2026 from $1.25 billion by end-2025.
  • The comparison hinges on value versus hype: the analyst argues SpaceX would need far higher profits and much larger revenue to justify its premium against established AI and ad-driven peers.

Insights

Is SpaceX's $1.75T valuation a sign of an AI bubble, or are traditional metrics simply outdated for revolutionary tech companies?
Backed by Nvidia, can the unprofitable Nebius outgrow giants like Amazon and become the new king of the AI cloud?
With public opposition to data centers at 71%, can the AI industry's massive expansion plans actually be sustained long-term?