Altria Is A Better Buy Than SpaceX

SpaceX shares could face volatility around an IPO, including a first-day jump followed by profit-taking selling. The company could also be valued skeptically if investors compare it to Facebook’s early public-market pattern, where later valuation concerns led to a sharp decline. Revenue concentration is another concern, since Starlink accounts for about 60% of revenue and is the only profitable unit, with satellite internet coverage across seven continents and 160 countries. SpaceX’s AI operations have lost billions and face intense competition from major AI leaders, with no sign of reduced effort. Some investors may shift toward recession-resistant dividend income, such as Altria, which has raised its dividend for 55 consecutive years and offers yields just under 6%.

"People could then dump shares to make immediate profits. SpaceX could look like Facebook did in 2012. It went public at $38 on May 8 and moved up after that first day. Later in the year, Barron's hammered the Facebook valuation. Skeptical investors sold it down to $20."

"People might worry that 60% of SpaceX's revenue comes from the Starlink super-internet product. It was the only profitable unit last year. The internet, via its satellite network, reaches all seven continents and 160 countries."

"SpaceX's AI operations have lost billions of dollars. It is up against the wildly successful products from Google, OpenAI, and Anthropic. There is no reason to think it will catch up. However, CEO and controlling shareholder Elon Musk shows no sign of throttling back his AI efforts."

"People could take the money they set aside for SpaceX and play it safe. If a recession is coming, one company has products that are recession-proof. It has raised its dividend for 55 consecutive years. Its rock-solid dividend yields just shy of 6%. Where else can people get that kind of return? Altria ( NYSE: MO | MO Price Prediction)."

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