SpaceX founder Elon Musk, who recounted during the IPO's Nasdaq bell ringing from Starbase, Texas, said he once gave the space giant less than a 10% chance of succeeding.
Fast-forward 24 years, and SpaceX has become a publicly traded company, completing the largest initial public offering in history on June 12, 2026. The IPO raised more than $87.5 billion, with shares priced at $135.
The stock is now hovering around $141 per share, below its initial trading price of $150 and well off its post-IPO high of $200.
SpaceX's market capitalization has climbed to nearly $2 trillion, putting it ahead of Elon Musk's other major company, Tesla, which has a market cap of approximately $1.49 trillion as of November 10, 2026.
Both companies have become major players, but SpaceX's growth has given investors another opportunity to consider whether Musk's latest venture belongs in their portfolios and can help them get ahead financially.
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Where SpaceX actually makes money
SpaceX's Starlink satellite business remains an important part of its operations, providing broadband and mobile connectivity to customers worldwide. But the company's business has grown beyond rocket launches and satellite internet.
In its third-quarter results, covering the three months ended September 30, 2026, SpaceX reported revenue of $14.6 billion, a 161% increase from the same quarter last year.
The company generated $2.8 billion in operating income and $4.4 billion in net income. Its adjusted EBITDA reached $8.8 billion, up 306% year over year.
Connectivity contributed $5.2 billion in revenue, while the company's Super Intelligence segment generated approximately $7.6 billion. SpaceX's AI business is also expanding following its acquisition of Cursor, the AI coding platform.
SpaceX's losses have turned into quarterly profits
SpaceX's latest financial results tell a different story from its earlier losses.
For the third quarter of 2026, the company reported $4.4 billion in net income, compared with a $1.1 billion net loss during the same quarter in 2025.
Its operating income also improved to $2.8 billion, compared with an operating loss of $273 million a year earlier.
The company's Super Intelligence segment contributed $431 million in operating income during the quarter. That is a notable change from its $1.7 billion operating loss in the third quarter of 2025.
Still, investors should watch how much SpaceX spends to support its ambitious growth plans. The company reported approximately $19.6 billion in capital expenditures during the third quarter alone, including $16.4 billion for its Super Intelligence segment.
SpaceX also completed its acquisition of Cursor on August 14, 2026. The deal was based on an implied equity value of $60 billion, adding another major investment to its growing AI business.
What analysts think it's worth
Wall Street has had more time to evaluate SpaceX since its public debut, and analyst coverage has expanded considerably.
According to Google Finance, 34 analysts have issued ratings on the stock within the past three months. Of those, 28 recommend buying, five recommend holding, and one recommends selling.
The average 12-month price target is $253.57 per share. However, there's a considerable difference between the most optimistic and pessimistic outlooks. Targets range from $140 on the low end to $500 on the high end.
Here's how a $5,000 investment could look based on SpaceX's November 10 share price of $141.42. Assuming fractional shares are available, that investment would buy approximately 35.36 shares, excluding trading fees.
- $140 price target: Your investment would be worth approximately $4,950, representing a loss of about $50.
- $253.57 average price target: Your investment would be worth approximately $8,965, representing a gain of about $3,965.
- $500 price target: Your investment would be worth approximately $17,678, representing a gain of about $12,678.
These figures are hypothetical scenarios, not guaranteed returns. Analyst price targets are estimates, and the stock could trade above or below them.
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Why the Nasdaq 100 move matters
SpaceX became a member of the Nasdaq-100 Index on July 7, 2026, joining 100 of the largest nonfinancial companies listed on the Nasdaq exchange.
The Nasdaq-100 is tracked by several investment products, including the Invesco QQQ ETF. When a company joins the index, funds that track it may need to purchase shares to reflect the index's updated holdings.
That can create additional demand for a newly added stock. However, index inclusion doesn't guarantee that a company's share price will increase.
Bottom line
No question SpaceX is an intriguing company. Elon Musk has built an impressive business, and its latest quarterly results also show that the company has made significant progress in generating revenue and turning a profit.
Forbes reported that Musk became the world's first trillionaire following SpaceX's historic IPO in June 2026, with an estimated net worth of $1.1 trillion at the time.
Still, SpaceX's ambitions to build a base on Mars and expand its presence in artificial intelligence come with considerable costs and execution risks. Even with strong quarterly results, investors should consider how much growth is already reflected in the company's nearly $2 trillion valuation.
The stock could experience considerable volatility as the company expands into new markets and investors reassess its long-term potential. Speculation about a possible combination with Tesla adds another wildcard, although neither company has announced a completed transaction.
If you want to start investing in SpaceX, think carefully about your risk tolerance, investment timeline, and how much exposure to a single company makes sense for your portfolio. A conversation with a financial professional can help you decide whether the opportunity fits your broader financial goals.
This article is for informational purposes only and should not be considered investment advice
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