Billionaire Bill Ackman, CEO of Pershing Square Capital Management, recently expressed cautious optimism about Space Exploration Technologies (NASDAQ: SPCX), specifically highlighting its Starlink satellite internet service as having a “near monopoly.” Despite this praise, Ackman is refraining from investing in SpaceX due to concerns over its current valuation, which stands at $1.49 trillion with a trailing price-to-sales ratio of approximately 79. For comparison, Nvidia, a leading tech company, has a price-to-sales ratio of 18.7.
Ackman noted that SpaceX is not part of his investment strategy at this time, citing a lack of predictability and high valuations, which can limit upside potential. He plans to monitor the company, especially as SpaceX is expected to report its first earnings as a public entity on August 4. The high valuation raises concerns about substantial pullbacks if performance doesn’t meet market expectations.
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