David Jagielski, CPA, The Motley Fool Mon, November 9, 2026 at 12:08 PM EST 3 min read SPCX +5.53% NVDA -4.92% Explore stocks on Coinbase Trading disclosure Trading disclosure The above button links to Coinbase. Yahoo Finance is not a broker-dealer or investment adviser and does not offer securities or cryptocurrencies for sale or facilitate trading. Coinbase pays us for certain activity generated through this link. Prices displayed are informational.
Shares of Space Exploration Technologies Corp (NASDAQ:SPCX) initially fell following the midterm election results last week, as investors worried about the potential consequences of a Democratic-controlled Congress. CEO Elon Musk clearly saw a lot at stake, spending close to $500 million on the elections to help Republicans, only to see those efforts fail.
While it may be a disappointing result for Musk and his related businesses, the midterm elections don't make SpaceX a worse buy. Here's why.
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Investing in a space company whose long-term ambitions involve sending people to Mars and putting data centers into space is going to require tremendous patience. It's very likely going to take several years, potentially even decades, to see the company achieve some of its most ambitious aims -- assuming it'll be able to.
Political parties will inevitably change over that stretch, and the company will need to succeed and grow under varying political and economic circumstances and policies.
In the short term, there may be some greater restrictions on artificial intelligence (AI) and increased oversight as a result of changing government policies, but that doesn't make SpaceX any worse of a buy in the long run. And it certainly doesn't detract from its long-term growth potential.
While SpaceX didn't become any worse of a buy due to the midterm results, it didn't get better or less risky, either. The biggest obstacle to its rising in value is that, with a market cap of around $2 trillion and significant capital expenditures, investors need a high risk tolerance to buy the stock, given the inflated expectations that accompany its high price tag.
The company's revenue more than doubled in its most recent quarter, to $14.6 billion. However, the stock didn't surge on the results simply because that type of growth is arguably expected for a business that's valued as highly as SpaceX; high expectations are priced in. For investors, that means it may take a lot to give the stock a meaningful boost from its current share price.
SpaceX has ample growth opportunities across telecom, AI, and space, and if it can capitalize on all of them, its valuation could rise significantly. It is, however, a big 'if'.
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David Jagielski, CPA has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Space Exploration Technologies. The Motley Fool has a disclosure policy.
Why the Midterm Election Results Don't Make SpaceX Any Worse of a Buy was originally published by The Motley Fool
