SpaceX Valuation Reaches Dot-Com Bubble Levels, Raising Concerns

SpaceX's market capitalization has reached $2.1 trillion, with its price-to-sales ratio (P/S) standing at a staggering 98. This has led to comparisons with Amazon's valuation during the dot-com bubble.

While some growth investors are optimistic about SpaceX's prospects, a closer look at Amazon's history offers a cautionary tale. In 2009, Amazon generated $24.5 billion in revenue and had a P/S ratio between 1.5 and 2.5. If it were valued at the same multiple as SpaceX today, its market cap would be around $2.4 trillion.

However, even accounting for two decades of growth and shareholder dilution, Amazon's stock price in a hypothetical scenario where an investor bought in 2009 at a P/S ratio of 98 would likely be lower today than it was back then.

This raises concerns that SpaceX might not be worth the current valuation. With a revenue growth rate of 92% last quarter and a gross profit margin of 52%, investors should be cautious about the stock's future performance.