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Cramer: SpaceX Is a ‘100-Year Bond’ for Your Grandkids’ Future
Jim Cramer Says SpaceX Is a "100-Year Investment" Despite Post-Earnings Drop
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What Happened?
On Wednesday, Jim Cramer (the loud, energetic host of CNBC’s Mad Money) went on TV and told investors something surprising: Don’t panic about SpaceX’s stock drop. Instead, he said, think of SpaceX like a really, really long-term savings bond—the kind your great-great-grandkids might cash in.
ELI5 Analogy: Imagine planting a giant oak tree. For the first few years, it just looks like a stick in the dirt. But if you wait 50 years? You’ve got a massive tree providing shade, wood, and oxygen for generations. Cramer says SpaceX is that oak tree.
Why Did SpaceX Stock Fall?
SpaceX just went public (had its IPO—Initial Public Offering) in June. This week, they reported their first quarterly earnings as a public company. Here’s the scorecard:
| Metric | Result | What It Means |
|---|---|---|
| Revenue | $7.81 billion | Beat expectations! (Wall Street expected $6.93B) |
| Year-over-Year Growth | +92% | Nearly doubled in size |
| Cash on Hand | $100 billion | Massive war chest |
| Future Contracts (Backlog) | $47.5 billion | Guaranteed work lined up |
| Stock Price Reaction | –13.61% | Dropped sharply |
So why did the stock drop if revenue was great?
Two main reasons spooked investors:
-
High Spending (Capital Expenditures)
SpaceX is pouring tons of money into building rockets, satellites, and data centers. Investors worry this spending will hurt short-term profits. - Locked-Up Shares Unlocking Soon
About 911 million shares that early investors couldn’t sell are about to become available. This could flood the market with sellers, pushing the price down further.
Cramer’s Long-Term Case for SpaceX
Cramer isn’t worried about the next few months. He’s looking at the next few decades.
The "100-Year Railroad Bond" Comparison
"Back in the day, people bought 100-year railroad bonds that paid off. SpaceX could be a 100-year piece of paper too."
Translation: In the 1800s, people bought bonds to build railroads across America. It took forever, but those railroads became the backbone of the economy—and the bonds paid off huge. Cramer thinks SpaceX is building the "railroads of space."
"Will Your Grandkids Work on the Moon?"
Cramer asked viewers:
"Do you think your children or your grandchildren won’t be doing stuff on the Moon someday?"
He also mentioned orbital data centers powered by the sun—giant computers in space that could handle AI workloads without overheating Earth’s power grids.
SpaceX’s Strong Financials (The "Boring" But Important Stuff)
Even with the stock drop, the numbers look impressive:
- $7.81B revenue (up 92% from last year)
- $100B in cash — enough to fund almost anything
- $47.5B backlog — customers already committed to paying
- AI compute investments paying back in < 1 year — very fast for big infrastructure
Key Growth Areas: The "Big Three"
Cramer highlighted three engines that could drive SpaceX for decades:
| Project | What It Is | Why It Matters |
|---|---|---|
| Starship | Giant, fully reusable rocket | Could slash launch costs 100x; enables Mars missions |
| Starlink | Satellite internet constellation | Already millions of users; global coverage + high margins |
| AI Compute | Renting out computing power in space | Deals with Anthropic and Google; payback < 1 year |
Fun Fact: SpaceX isn’t just launching rockets anymore—they’re becoming a cloud computing landlord in orbit.
Important Points to Remember
CALL OUT BOX: KEY TAKEAWAYS
- Cramer’s stance: SpaceX is a multigenerational bet, not a quick trade.
- The risk: Near-term volatility from share unlocks and high spending.
- The bull case: Musk’s track record (Tesla, SpaceX, PayPal), massive cash reserves, and three massive growth engines.
- Cramer’s own words: "I would never recommend SpaceX if Musk weren’t involved. I’m confident that Musk can raise all of the money he needs."
- Bottom line: "One day this stock could be a huge winner. I just don’t know when that day will come."
Summary
Jim Cramer believes SpaceX is the kind of investment you buy for your grandchildren. Yes, the stock dropped 13% after earnings because investors are nervous about short-term spending and a flood of shares hitting the market. But the business is booming: revenue nearly doubled, they have $100B in the bank, and they’re building the infrastructure for a future where space is just another place to do business.
If you believe humans will live, work, and compute in space—Someday—SpaceX might be the "railroad bond" of our era. If you need your money next year? Probably not the right pick.
FAQ
1. Is SpaceX publicly traded now?
Yes! SpaceX had its IPO (Initial Public Offering) in June 2025. Before that, it was private—only wealthy investors and employees could own shares.
2. Why did the stock drop if earnings were good?
Stock prices often react to expectations and forward-looking concerns, not just past results. Investors worried about:
- High spending (CapEx) hurting near-term profits
- 911 million shares unlocking for sale soon
3. What are "locked-up shares"?
After an IPO, early investors and employees usually can’t sell their shares for 90–180 days. When that "lock-up" expires, many sell at once—which can push the price down temporarily.
4. What is Starship, and why does it matter?
Starship is SpaceX’s next-gen rocket: fully reusable, massive, and designed for Mars. If it works, it could drop launch costs from ~$60M to ~$2M per flight. That changes everything for space economics.
5. Does Cramer own SpaceX stock?
The article doesn’t say. But he explicitly tied his recommendation to Elon Musk’s involvement—saying he wouldn’t recommend it without Musk. Always check for disclosures before acting on TV personality picks.
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