Space Exploration Technologies’ (NASDAQ:SPCX) \u2014 aka SpaceX \u2014 stock is down roughly 43% from its peak in June. But that hasn’t stopped UK investors from piling in. <\/p>\n
According to Interactive Investor, SpaceX was the second most-bought stock on its platform in July. And it has topped the charts over the past month on AJ Bell. <\/p>\n
Clearly then, many UK investors have been buying the dip. Should I get involved too? <\/p>\n
I’ve been wary <\/p>\n
Before SpaceX went public, I was wary about buying shares through my investment platform. History shows that hyped-up IPOs tend to fizzle out quite quickly, leading to a lower share price. <\/p>\n
In fact, in an early-June article entitled Will SpaceX crash after the stock market IPO? I wrote: “In my experience, there’s usually a chance to invest later on at a better price if I’m patient”. <\/p>\n
Admittedly, the stock isn’t that far off its IPO price of $135, so hardly a crash when measured from that point. And when I said patient, I was thinking 12 months at least before taking a serious look. <\/p>\n
However, the company’s second quarter report certainly piqued my interest. Here’s why\u2026 <\/p>\n
The AI wildcard <\/p>\n
Having followed SpaceX as a private company for a decade, I was already familiar with the space\/rocket side of the business. I’m one of those nerds who tunes into the live Starship test launches. <\/p>\n
And the Starlink satellite constellation, while an enormous engineering challenge to build and operate, is actually quite a simple business to conceptualise. Boiled down, it’s a global telecom utility operating as a high-margin subscription service. <\/p>\n
The AI business was what I wanted to learn more about. Because SpaceX’s capital expenditure here is on track to exceed $50bn in 2026 \u2014 a colossal sum that worries me. <\/p>\n
What did I learn? <\/p>\n
SpaceX intends to make money from AI in a few ways: <\/p>\n
Rent out massive GPU capacity to external AI companies. <\/p>\n
Software subscriptions (Grok and Cursor, an AI coding tool). <\/p>\n
AI satellites in orbit offering energy-efficient, low-cost processing capacity. <\/p>\n
As is well-documented, SpaceX disrupted the launch industry through extreme vertical integration and cost-cutting innovations. As a result, it has reduced the cost of launching cargo to low Earth orbit by roughly 95% compared to NASA’s shuttle days. <\/p>\n
What interests me here is that this same disruptive mindset, alongside the expertise in building the best rockets and satellites, is being applied to terrestrial data centres. <\/p>\n
Terrestrial data centres are a trivial problem compared to making gigantic reusable rockets which are launched frequently. And the Starlink satellites also are alien-level technology\u2026 so you take a small percentage of that engineering, apply it to terrestrial data centres, and you get an amazing outcome. <\/p>\n
Elon Musk. <\/p>\n
Additionally, SpaceX plans to start launching Starmind AI satellites next year. Of course, Musk’s timelines are notoriously optimistic, and there’s a big risk that AI costs balloon much faster than expected moving forward, forcing SpaceX to take on debt and issue equity. <\/p>\n
Nevertheless, the optionality here for the existing Starlink business is already off the charts \u2014 maritime fleets, commercial airlines (just 10% penetrated), Starlink Mobile, governments, defence (Starshield), and consumers. Then Starmind to come, eventually. <\/p>\n
The stock’s still expensive today, adding risk for invertors considering it. So my plan is to build out a position over time whenever SpaceX sells off. <\/p>\n
Should you invest \u00a35,000 in Space Exploration Technologies Corp. – Class A 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 Space Exploration Technologies Corp. – Class A made the list? <\/p>\n
\u00a0See The Six Stocks <\/p>\n
\u00a0 <\/p>\n
Ben McPoland has no position in any of the companies mentioned. <\/p>\n
The post Down 43%, is SpaceX a stock to consider buying? UK investors give their verdict<\/a> appeared first on The Twelfth Magpie<\/a>. <\/p>\n More reading <\/p>\n The Twelfth Magpie 2026 <\/p>\n","protected":false},"excerpt":{"rendered":"Space Exploration Technologies’ (NASDAQ:SPCX) \u2014 aka SpaceX \u2014 stock is down roughly 43% from its peak in June.…\n","protected":false},"author":2,"featured_media":99670,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":"","_share_on_mastodon":"0"},"categories":[4],"tags":[42061,5,6],"class_list":["post-99669","post","type-post","status-publish","format-standard","has-post-thumbnail","category-uk","tag-space-exploration-technologies","tag-uk","tag-united-kingdom"],"share_on_mastodon":{"url":"https:\/\/pubeurope.com\/@UnitedKingdom\/117059050882527162","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/britain\/wp-json\/wp\/v2\/posts\/99669","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=99669"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/britain\/wp-json\/wp\/v2\/posts\/99669\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/britain\/wp-json\/wp\/v2\/media\/99670"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/britain\/wp-json\/wp\/v2\/media?parent=99669"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/britain\/wp-json\/wp\/v2\/categories?post=99669"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/britain\/wp-json\/wp\/v2\/tags?post=99669"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}