Somewhat confusingly, Rolls-Royce (LSE: RR.) shares and SpaceX (NASDAQ: SPCX) stock feature on both the ‘most popular buy’ and ‘most popular sell’ tables on several platforms. So, which is the better investment right now? <\/p>\n
For a giggle, I decided to see what an AI bot thought. I can’t say I agreed with what it said. <\/p>\n
On the upside\u2026 <\/p>\n
To be fair, ChatGPT did manage to highlight some of the strengths of both companies. For example, it recognised that Rolls-Royce had “several powerful growth drivers” beyond its civil aerospace business. Tragically, ongoing armed conflicts and geopolitical tensions will do no harm to its defence division, for example. <\/p>\n
The bot also touched on the fact that recent half-year results were excellent, pushing the company to raise its full-year outlook. <\/p>\n
For SpaceX, it stated that the company’s growth potential was “extremely high”. It also commented on its “exceptional” competitive moat, highlighting its Starlink satellites and launch services. <\/p>\n
It said what about Rolls-Royce shares?! <\/p>\n
Then again, there were a few things said by the AI bot that I’d question. <\/p>\n
For one, it said that the risk attached to Rolls-Royce shares was ‘moderate’. With the shares currently trading on a price-to-earnings (P\/E) ratio of 38, I beg to differ. To justify such a price tag, CEO Tufan Erginbilgi\u00e7 needs to execute to perfection going forward. <\/p>\n
Even if this comes to pass, I can see holders dumping the shares in the event of a market-wide correction or crash. This is always a drawback with high-performing but expensive growth stocks. <\/p>\n
Back down to earth <\/p>\n
With SpaceX, ChatGPT said that “the issue isn’t the business; it’s the price”. Actually, I think it’s both. <\/p>\n
Even the most bullish of analysts conceded that the valuation slapped on Elon Musk’s company at IPO was ludicrous. Since then, we’ve seen some common sense prevail. But loss-making SpaceX still looks monstrously overvalued, even if it did just announce revenue of $7.8bn in its first quarterly report as a public company (beating expectations). <\/p>\n
The fact that one of its rockets is now reported to have crashed into the moon doesn’t exactly inspire confidence that the stock will shoot back up in value either. <\/p>\n
To be clear, prospective buyers should know that this is not primarily a space business; ironically, it’s an enormous bet on AI. And we know that the markets are getting increasingly skittish about whether that will pay out. <\/p>\n
Conveniently, ChatGPT didn’t mention this. More worryingly, it estimated I could multiply my money between five and 10 times if things went well but neglected to say how it arrived at these multiples. <\/p>\n
Here’s where I’m at <\/p>\n
For my part, I’m not interested in buying either Rolls-Royce shares or SpaceX directly. I’m far more content to get my exposure via exchange-traded funds. This reflects my risk tolerance. I like to sleep at night. <\/p>\n
Will this always be the case? I’m not sure. I might be tempted to get involved if either were to suffer a severe and sustained fall. <\/p>\n
What I am confident about today, however, is that ChatGPT (or any other AI tool) should not be the only method used for picking stocks. <\/p>\n
Trusting a bot to secure my wealth is likely to end in tears. <\/p>\n
Should you invest \u00a35,000 in Rolls-Royce Plc right now? <\/p>\n
When investing expert Mark Rogers and his team have a stock tip, it can pay to listen. After all, the flagship Twelfth Magpie Share Advisor newsletter he has run for nearly a decade has provided thousands of paying members with top stock recommendations from the UK and US markets. <\/p>\n
And right now, Mark thinks there are 6 standout stocks that investors should consider buying. Want to see if Rolls-Royce Plc made the list? <\/p>\n
\u00a0See The Six Stocks <\/p>\n
Paul Summers has no position in any of the shares mentioned <\/p>\n
The post I asked ChatGPT which is the better buy, SpaceX or Rolls-Royce shares. It said\u2026<\/a> appeared first on The Twelfth Magpie<\/a>. <\/p>\n More reading <\/p>\n The Twelfth Magpie 2026 <\/p>\n","protected":false},"excerpt":{"rendered":"Somewhat confusingly, Rolls-Royce (LSE: RR.) shares and SpaceX (NASDAQ: SPCX) stock feature on both the ‘most popular buy’…\n","protected":false},"author":2,"featured_media":84061,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":"","_share_on_mastodon":"0"},"categories":[20731],"tags":[4939,1238,21966,3702,5486],"class_list":["post-97857","post","type-post","status-publish","format-standard","has-post-thumbnail","category-rolls-royce","tag-chatgpt","tag-rolls-royce","tag-rolls-royce-holdings-plc","tag-shares","tag-spacex"],"share_on_mastodon":{"url":"https:\/\/pubeurope.com\/@UnitedKingdom\/117043042878445370","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/britain\/wp-json\/wp\/v2\/posts\/97857","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/britain\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/britain\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/britain\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/britain\/wp-json\/wp\/v2\/comments?post=97857"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/britain\/wp-json\/wp\/v2\/posts\/97857\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/britain\/wp-json\/wp\/v2\/media\/84061"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/britain\/wp-json\/wp\/v2\/media?parent=97857"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/britain\/wp-json\/wp\/v2\/categories?post=97857"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/britain\/wp-json\/wp\/v2\/tags?post=97857"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}