If I Had $5,000 to Invest Today, Here's the Trillion-Dollar Stock I'd Buy Instead of SpaceX
This stock might have significantly more upside potential than SpaceX.
Overview
Elon Musk's space transportation and satellite internet connectivity company, Space Exploration Technologies (NASDAQ: SPCX), went public on Friday, June 12. It was well received by investors, and its stock climbed to a peak of $218 per share within a few days.
But with a market capitalization of $2.8 trillion and just $19.3 billion in trailing-12-month revenue, it was trading at a sky-high price-to-sales ratio of 145, making it a whopping 20 times as expensive as the Nasdaq-100 technology index.
Details
That valuation was simply unsustainable, and as of the market close on Thursday, June 18, SpaceX stock had already fallen to $185. But it's still very expensive, so if I had $5,000 to invest in one stock for my diversified portfolio, I would probably look elsewhere. In fact, here's why Microsoft (NASDAQ: MSFT) might be the better long-term buy.
Source
Originally published at www.fool.com.