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Better Buy: SpaceX or the "Magnificent Seven"?

The Motley Fool·
Better Buy: SpaceX or the "Magnificent Seven"?

SpaceX's recent IPO has brought it to trillion-dollar valuation comparable to tech giants, but the article argues it remains overvalued compared to the Magnificent Seven. While SpaceX generated $18.7B in revenue in 2025 with a negative 26% profit margin, achieving its 45% target margin would still leave it far behind established tech leaders in absolute profits. The analysis suggests SpaceX would need seven years of 40% annual growth to match Amazon's profit levels, meaning significant future growth is already priced into the stock. The author recommends the Magnificent Seven companies as better investments with less speculative valuation.

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