Jim Cramer said investors should take a long-term view on SpaceX and treat the stock as a generational asset, drawing a comparison to the 100-year railroad bonds that investors once bought, according to BlockBeats on August 8.
Speaking on CNBC’s Mad Money, Cramer said SpaceX could become a similar long-duration value asset. He said future economic growth may come from lunar commercial activity, orbital data centers, and broader space infrastructure.
At a CNBC Investing Club meeting, Cramer added, “If it were my children, I would own this stock,” and described SpaceX founder Elon Musk as a visionary entrepreneur.
Still, Cramer did not tell investors to rush into large purchases of SpaceX shares. He had previously warned that an increase in share supply could pressure the stock in the short term.
After a lock-up expiration on August 6, about 911.5 million SpaceX shares became tradable. That lifted the company’s public float from about 639 million shares to 1.55 billion shares, adding more than $100 billion in tradable stock to the market.
SpaceX shares have fallen for five consecutive weeks. The stock also dropped 13.61% in one day after the company released its first quarterly earnings report since going public. Earlier, capital expenditures came in more than $5 billion above Wall Street expectations, adding to investor concern.
Cramer’s long-term thesis for SpaceX
- Starlink satellite internet: The business has become SpaceX’s main profit source, covering more than 160 markets and serving about 12 million users.
- AI computing infrastructure: SpaceX plans to use data centers and computing resources to participate in the AI compute market.
- Starship and commercial launch services: Reusable technology could lower the cost of reaching space.
- Orbital data centers: SpaceX is looking at computing infrastructure in space using solar energy and environmental advantages, though this remains at an early stage.
- Lunar commercial ecosystem: As one of the partners in NASA’s Artemis moon program, SpaceX could take part in future lunar infrastructure projects.
Cramer said SpaceX’s long-term value rests on its potential to build the infrastructure of the space economy over the coming decades, even as near-term price swings and valuation pressure remain issues for investors to watch.