SpaceX IPO and Cloud Computing Market Insights
The upcoming SpaceX IPO has generated significant investor interest, yet analysts argue that established cloud computing companies like Amazon (NASDAQ: AMZN), Microsoft (NASDAQ: MSFT), and Alphabet (NASDAQ: GOOG) represent better long-term investments. These three companies have robust, profitable cloud divisions that are set to benefit from increasing demand, especially from AI startups.
In 2026, it is projected that the combined capital expenditures of Amazon, Microsoft, Alphabet, and Meta Platforms for data centers will reach approximately $650 billion, with Nvidia forecasting that this figure will exceed $1 trillion. Currently, Amazon and Microsoft are viewed as historically undervalued, with a focus on operating cash flow for valuation, while SpaceX is valued at a hefty price-to-adjusted EBITDA ratio of 379, making it less attractive by comparison.
As cloud demand rises, analysts suggest that Amazon, Microsoft, and Alphabet are well-positioned for significant revenue growth, contrasting with SpaceX’s need to justify its high valuation through future performance.
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