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Cramer: SpaceX Is a ‘100-Year Bond’—Buy for Your Grandkids
Jim Cramer Says SpaceX Is a ‘100-Year Investment’ Despite Post-Earnings Drop
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What Happened? SpaceX Reports Earnings, Stock Takes a Hit
On Wednesday, SpaceX (Elon Musk’s rocket and satellite company) shared its first quarterly report card since going public in June. Here’s the quick version:
- Revenue: $7.81 billion — that’s 92% higher than last year and way above the $6.93 billion Wall Street expected.
- Cash on hand: $100 billion (yes, with a B).
- Future orders (backlog): $47.5 billion.
Sounds great, right? But the stock dropped 13.61% anyway. Why? Investors got nervous about two things:
- Spending is skyrocketing — SpaceX is pouring money into new rockets and satellites (called capital expenditures).
- A flood of shares is coming — About 911 million shares that were locked up (couldn’t be sold) will soon hit the market, which could push the price down further.
Cramer’s Take: “Think in Decades, Not Days”
Jim Cramer, the loud-but-often-insightful host of CNBC’s Mad Money, told viewers not to panic. His message: SpaceX isn’t a stock you trade — it’s a stock you bequeath.
“Back in the day, people bought 100-year railroad bonds that paid off. SpaceX could be a 100-year piece of paper too.”
What Does a “100-Year Investment” Look Like?
Cramer asked viewers to imagine the world their grandkids will live in:
- Moon bases and lunar mining are routine.
- Orbital data centers — giant server farms in space, powered by the sun — handle the massive computing needs of AI.
- Starship (SpaceX’s next-gen rocket) flies daily, making space travel as normal as air travel.
“Do you think your children or your grandchildren won’t be doing stuff on the Moon someday?” — Jim Cramer
Why Cramer Still Believes (Despite the Drop)
Cramer gave three big reasons he’s staying bullish:
1. It’s the “Musk Factor”
“I would never recommend SpaceX if Musk weren’t involved. I’m confident that Musk can raise all of the money he needs.”
Elon Musk has a track record of turning “impossible” into “profitable” (Tesla, SpaceX, Starlink). Cramer bets he’ll do it again.
2. Three Massive Growth Engines
| Project | What It Is | Why It Matters |
|---|---|---|
| Starship | Fully reusable super-rocket | Cuts launch costs by 10x–100x; enables Moon/Mars missions |
| Starlink | Global satellite internet | Already millions of users; recurring revenue machine |
| AI Compute | Renting space-based computing power | Deals signed with Anthropic & Google — payback in <1 year |
3. The Numbers Are Actually Strong
- $100B cash = war chest for years of R&D.
- $47.5B backlog = guaranteed future revenue.
- AI compute demand is so high SpaceX can’t build fast enough — and each new unit pays for itself in under 12 months.
Important: The Near-Term Risks Are Real
- Stock could keep falling as locked-up shares hit the market.
- Spending will stay high — this isn’t a “profit now” company.
- Cramer admits: “One day this stock could be a huge winner. I just don’t know when that day will come.”
Translation: Only invest money you don’t need for 5–10+ years.
Summary: The Big Picture in 5 Bullet Points
- SpaceX crushed Q2 revenue ($7.81B vs. $6.93B expected), but the stock fell 13.6% on spending fears and upcoming share unlocks.
- Jim Cramer says zoom out — think of SpaceX like a 100-year railroad bond: ugly now, potentially legendary later.
- The long-term vision includes Moon bases, space-based AI data centers, and daily Starship flights.
- Cramer’s confidence rests on Musk, plus three monster businesses: Starship, Starlink, and AI compute (already paying back in <1 year).
- This is not a quick flip. It’s a “buy and forget for a generation” bet — if you believe humanity’s future is off-planet.
FAQ: Your Questions, Answered Simply
Is SpaceX publicly traded? Can I buy shares?
Yes, SpaceX had its IPO in June 2024. You can buy shares through any regular brokerage (Fidelity, Schwab, Robinhood, etc.) under the ticker SPCX (hypothetical — check your broker for the real symbol).
Why did the stock drop if earnings were good?
Two reasons: (1) Investors hate surprise spending spikes, and (2) 911 million shares are about to become sellable, which could flood the market and lower the price.
What are “capital expenditures” (CapEx)?
Money a company spends to build or buy big stuff — factories, rockets, satellites, data centers. It hurts short-term profits but (hopefully) drives long-term growth.
What’s the deal with “AI compute in space”?
Imagine a giant server farm orbiting Earth, powered by free sunlight 24/7, beaming processed data down via lasers. No cooling bills, no land costs. SpaceX is already renting this to Anthropic and Google.
Should I buy SpaceX stock today?
Only if:
- You’re investing for 10+ years.
- You can stomach big swings (30–50% drops are normal for disruptive tech).
- You believe Elon Musk will keep delivering miracles.
- This is not financial advice. Talk to a fiduciary advisor first.
Final Thought
SpaceX isn’t just a rocket company. It’s a bet on humanity becoming multi-planetary — and on the idea that the next trillion-dollar industries will be built in orbit.
As Cramer put it: “I just don’t know when that day will come.” But if it does, the people who held on won’t care about a 13% drop in 2025.
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