SpaceX Asks Investors To Reach For The Stars With A Revenue Multiple Higher Than Nvidia, Apple And Every Mag 7 Member

SpaceX‘s upcoming stock market debut is putting a spotlight on the company’s valuation, with some investors questioning whether its revenue can support one of the richest multiples in the market.

Pricier Than The Magnificent Seven

For all the excitement surrounding what is expected to be the world’s largest IPO on June 12, SpaceX remains a company that has yet to turn a profit. After posting a $4.9 billion loss in 2025, investors are left valuing the company on its revenue generation rather than its earnings power.

Based on the company’s revenue of $18.7 billion in 2025, investors would be paying nearly $93.6 for every dollar of revenue generated by SpaceX, according to a report by The Motley Fool, giving the company a higher revenue multiples than NVIDIA Corp (NASDAQ:NVDA), Broadcom Inc (NASDAQ:AVGO) and every member of the Magnificent Seven.

The valuation towers over Nvidia’s, with investors paying 4.7 times more for each dollar of revenue than they do for one of Wall Street’s most richly valued stocks and the poster child for premium valuations in the AI era.

It is also more than 26 times Amazon.com Inc.‘s (NASDAQ:AMZN) revenue multiple and roughly 6.5 to 9.9 times that of the others in the group, based on market valuations on Thursday.

Why Investors Are Willing To Pay Up

Despite concerns about its valuation, investor appetite for the offering appears strong. Reuters reported Tuesday that SpaceX’s IPO attracted more than $250 billion in orders.

The demand implies the offering was oversubscribed by roughly 3.5 times, suggesting many investors are willing to look past near-term profitability concerns in exchange for exposure to one of the world’s most closely watched private companies.

That optimism was echoed by billionaire investor Ron Baron, who earlier this week said SpaceX could ultimately become the most valuable company ever created, forecasting its valuation could grow from less than $2 trillion at IPO to as much as $30 trillion over time.

“I would steer clear of investing in SpaceX at its IPO because of the virtually inevitable volatility and risks. That doesn’t mean it won’t eventually be a good investment, but I’d give it time to breathe,” said Stefon Walters, an analyst at The Motley Fool.

Morningstar struck a similarly cautious note on Monday, saying its $780 billion fair value estimate remains roughly 55% below SpaceX’s reported IPO valuation despite incorporating ambitious assumptions about the company’s future growth prospects.

Priced For Perfection?

Walters argued that a great company does not always make a great investment, particularly when lofty expectations are already reflected in the valuation.

According to the analyst, SpaceX’s valuation leaves little room for disappointment and increases the risk of volatility once shares begin trading publicly.

“Regardless of how promising a company is, if you’re investing while it’s trading at a high premium and priced for perfection (which is the case with SpaceX), you can limit your upside and increase the risk of a post-IPO pop sell-off.” Walters said.

While he did not rule out the possibility that SpaceX could become a successful long-term investment, Walters suggested investors may want to wait for the stock to establish a trading history before buying into the IPO.

Benzinga Edge Rankings indicate that NVDA has a Momentum score in the 79th percentile and a Growth score in the 98th percentile.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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