Elon Musk’s SpaceX went public in June and saw a rapid rise in stock price before experiencing a 34% decline. Currently trading at $148.68, it has a high P/S ratio of 87, making it significantly more expensive than the Nasdaq-100 index, which raises concerns about further downside.
In contrast, the article suggests that Netflix presents a better investment opportunity, with a P/S ratio of just 6.2 and strong revenue prospects through its expanding advertising revenue. Netflix is the leader in streaming, boasting over 325 million subscribers, and is forecasted to double its advertising revenue to $3 billion by 2026. Additionally, Netflix’s stock is trading at a P/E ratio of 22.4, lower than its historical average and cheaper than the broader market.
In conclusion, the author believes that investing in Netflix could offer more favorable returns compared to SpaceX, given its attractive valuation and growth potential in the streaming and advertising markets.
