On June 11, 2026, SpaceX went public. The company debuted at $135 per share, raising approximately $75 billion and achieving a valuation of roughly $1.77 trillion—making it the largest initial public offering (IPO) in history. Overnight, SpaceX became worth more than Boeing, Mastercard, Disney, McDonald’s, American Express, and Starbucks combined.

SpaceX has become one of the most admired companies in the world, and many view its CEO, Elon Musk, as one of the defining entrepreneurs of our generation. The company pioneered reusable rockets, built the Starlink satellite network that many Filipinos use for internet access in remote areas, and even expanded into artificial intelligence through xAI.

Shares opened at $150 and closed their first day of trading at $160.95, cementing SpaceX’s status as one of the world’s most valuable corporations. On June 16, the stock reached a peak of $225.64 per share before closing at $201.80. Yet just days later, the stock tumbled, closing at $153.23 per share on June 26—a 32 percent drop from its high. Many are left wondering: will SpaceX’s stock go to the moon again?

Does a good reputation guarantee a good investment? Many investors assume that if a company has excellent products, talented management, and a bright future, its stock must automatically be a good buy. Investing doesn’t work that way. No matter how great a company is, there is always the risk of paying too much.

For example, back in the year 2000, many investors bought shares of Intel because they correctly believed computers would change the world. They pushed the stock to extreme levels, pricing it at around $70 per share even though the company had made only $1.57 in profit per share the previous year—a tiny earnings yield of just around two percent. Then, when people realized that technology companies weren’t generating enough profits to justify their sky-high prices, markets fell in what is now known as the dot-com crash. Intel's stock plunged to less than $35 per share, and it took more than two decades to return to $70 in 2026.

It’s easy to spot companies doing life-changing work, but the challenge lies in determining whether that excellence is already priced in. SpaceX generated approximately $18.7 billion in revenue during 2025. At its IPO valuation of roughly $1.77 trillion, investors were paying around 95 times annual sales. For comparison, Alphabet—the parent company of Google, YouTube, and Gemini AI—trades at roughly 10 times sales. This implies that SpaceX will need extraordinary growth for its cash flows to justify the investment, requiring far more than Alphabet's expected growth.

Still, there are reasons SpaceX could justify its valuation. The company has exposure to several industries that may grow dramatically over the coming decades, including satellite internet, space infrastructure, launch services, and artificial intelligence. If these opportunities become massive enough, today’s valuation may not look unreasonable in hindsight.

SpaceX’s IPO was one of the most anticipated financial events in modern history. Few companies have transformed entire industries the way it has, which is why many investors have so much faith in Elon Musk’s vision. The company is an innovator with a dominant market position, strong technological advantages, and multiple avenues for rapid growth.

However, even if all of this remains true, investors should be wary of overpaying for these fantastic characteristics. A company is not its stock. You can make bad investments in good companies, and you can make good investments in bad companies. Just like any other purchase, what matters at the end of the day is the price you pay relative to the quality you get.

Where will SpaceX’s stock end up over the next few years? Will today’s stock price eventually look expensive and stay grounded, as Intel’s did back in 2000? Or will it shoot for the stars, making today’s prices look cheap in comparison to everything SpaceX will achieve? Right now, it’s too early to say. Only time will tell.