On Wednesday, Jim Cramer urged investors to look beyond Space Exploration Technologies Corp.’s (NASDAQ:SPCX) post-earnings sell-off, arguing that Elon Musk’s aerospace company should be viewed as a multigenerational investment.
Cramer Says SpaceX Is a Long-Term Bet On the Future
During Wednesday’s episode of CNBC’s Mad Money, Cramer said investors should think about where SpaceX could be in decades, rather than focusing on short-term earnings or the stock’s recent decline.
Cramer compared the company to century-long railroad bonds that ultimately rewarded patient investors. “Back in the day, people bought 100-year railroad bonds that paid off. SpaceX could be a 100-year piece of paper too.”
He also pointed to the company’s long-term ambitions, asking viewers to imagine a future where lunar exploration and orbital infrastructure become commonplace.
“Do you think your children or your grandchildren won’t be doing stuff on the Moon someday?” Cramer said. He added that orbital data centers powered by the sun could one day become a practical solution as demand for AI computing grows.
Why SpaceX Stock Fell After Earnings
SpaceX shares dropped 13.61% on Wednesday after the company reported its first quarterly results since its June initial public offering.
While revenue topped Wall Street estimates, investors focused on sharply higher capital expenditures, raising concerns about near-term spending.
Cramer also acknowledged another potential overhang: roughly 911 million previously locked-up shares are set to become eligible for trading, a development that could increase near-term selling pressure.
Why Cramer Still Likes SpaceX
Despite those headwinds, Cramer argued that SpaceX’s long-term investment case remains intact because of Musk’s track record of executing ambitious, capital-intensive projects.
“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 highlighted SpaceX’s long-term growth opportunities, including Starship, Starlink and the company’s expanding AI compute business, which already has compute-rental agreements with Anthropic and Alphabet Inc.’s (NASDAQ:GOOG) (NASDAQ:GOOGL) Google.
“One day this stock could be a huge winner,” Cramer said. “I just don’t know when that day will come.”
SpaceX Q2 Revenue Beats Estimates
Earlier this week, SpaceX reported second-quarter revenue of $7.81 billion, up 92% year over year and ahead of the Street consensus estimate of $6.93 billion. The company ended the quarter with $100 billion in cash and cash equivalents and a $47.5 billion backlog.
Looking ahead, SpaceX said it continues to see strong demand across all three business segments, particularly cloud services and expects the AI compute supply-demand imbalance to persist, with new compute investments currently delivering a payback period of less than one year.
Price Action: SpaceX shares rose 1.61% in after-hours trading, though the stock remains down 32.51% over the past month, according to Benzinga Pro.
Benzinga Edge Stock Rankings show SpaceX continues to trade in a bearish trend over the short, medium and long term.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Photo Courtesy: katz / Shutterstock.com
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