CNBC’s Jim Cramer said Wednesday investors looking at Elon Musk’s SpaceX should stop thinking in quarters and start thinking in decades.
“SpaceX could be a 100-year piece of paper,” the “Mad Money” host said, arguing that SpaceX should be viewed much like the century-long railroad investments that ultimately rewarded patient investors. “Maybe you put some away for the next generation or even the one after that.”
Shares of SpaceX fell 13.6% on Wednesday as Wall Street digested the rocket-and-AI company’s first earnings report since its historic June IPO. While revenue in the quarter topped expectations, the company disclosed sharply higher capital expenditures.
Cramer acknowledged the stock could face additional near-term pressure with roughly 911 million previously locked-up shares becoming eligible for trading Thursday.
Still, he argued investors focused on the next few quarters are missing the bigger picture. Instead, he thinks SpaceX’s long-term value rests on Musk’s ability to repeatedly build transformative businesses.
While SpaceX’s ambitions will require enormous amounts of capital, Cramer said Musk has consistently proven he can raise money for projects many initially dismissed as unrealistic.
“I would never recommend SpaceX if Musk weren’t involved,” he said. “I’m confident that Musk can raise all of the money he needs.”
Cramer also pointed to several long-term growth opportunities across the company, including Starship, Musk’s fully reusable rocket program; Starlink’s expanding satellite internet business; and SpaceX’s growing compute footprint, which could eventually be used internally or rented to more outside customers. Currently, SpaceX has compute-rental agreements with Claude creator Anthropic and Alphabet’s Google.
While Cramer acknowledged those businesses may take years — or even decades — to reach their full potential, he said that’s precisely why investors should evaluate SpaceX differently from a typical stock.
“One day this stock could be a huge winner,” he said. “I just don’t know when that day will come.”
