Currently, Space Exploration Technologies (SPCX -3.86%) trades for under $150 per share. It opened at around $150 per share, so it's still below that price tag. While that may be a red flag for some investors, I don't think it's that big of a deal. Any stock will go through a volatile period when it hits the public markets, as supply and demand for the stock have to shake out for a bit. With the stock hovering around its opening price, I think this suggests it was fairly valued heading into the initial public offering (IPO).
But what comes next?
I think there are a few things that SpaceX investors need to watch for, as they could determine the next direction of the stock move.
Image source: The Motley Fool.
SpaceX's growth rates are picking up speed
When SpaceX first went public, there were questions about its growth rate. Investors wanted to know whether SpaceX could continue growing as quickly as it had been, or whether its growth rates had been artificially boosted during the IPO phase to attract more investors. Investors got the answer to that in the second quarter (Q2), as SpaceX's growth accelerated.
All of SpaceX's divisions showcased strong revenue growth, with its artificial intelligence (AI) segment in particular more than tripling its revenue during Q2. Overall, revenue rose 92% year over year -- an impressive mark. Q2 results were everything investors could hope for, and SpaceX also inched closer to turning a profit.
NASDAQ: SPCX
Key Data Points
Those solid results helped boost market sentiment, but it still has a way to go. I think the next thing investors have to watch for is ensuing earnings reports. Any company can produce one or two good quarters, but if SpaceX can do this for over a year, I think it could be worth investing in.
I think the market is in a see-it-to-believe-it mindset with SpaceX, which makes sense since it's new to public markets. If SpaceX can continue expanding the reach of its Starlink internet platform and see increased use of Grok from xAI, the two primary revenue drivers of SpaceX will continue to produce enough growth to keep investors interested. While the space economy and exploration are SpaceX's ultimate purpose, these two divisions are really driving the business right now, and continued success in them will bode well for SpaceX as a whole.
While I'm not buying the stock right now, if these two divisions continue to produce impressive growth rates as they did in Q2, it may be an investment worth making.
