Investors watched transfixed as the SpaceX (NASDAQ: SPCX) stock soared past $200 after its record-breaking IPO on 12 June. And they’ve been equally transfixed as (to give it its full name) Space Exploration Technologies Corporation shares plunge just as quickly.
It’s been quite the spectacle. Especially as it created the world’s first trillionaire in Elon Musk, then robbed him of that status within days.
Today, SpaceX shares trade around $153. The market-cap is still a stunning $2trn but the US tech sector is on a knife edge. There’s a fresh concern about the artificial intelligence (AI) revolution, which may turn out to be inflationary, as Apple hikes prices on iPads and Macbooks by up to $300 to cover the cost.
Is now the time to be wary of big tech?
SpaceX’s own AI division, xAI, is burning through cash. While its Starlink satellite internet division generates recurring revenue, it also requires heavy investment, and its 10,000 satellites erode quickly due to their low orbit.
SpaceX posted a $4.9bn net loss in 2025. In Q1 2026 alone it lost $4.28bn. We have no timeline for when it becomes profitable.
Musk’s venture has vast horizons and is arguably the most ambitious and exciting company on the planet. It will also benefit from a wall of money coming from index tracking funds over the next few weeks. But as always, with great opportunity comes great risks. Right now, this one’s too risky for me.
As investors get nervous about AI generally, I’m looking at companies that are making money today, and there are plenty of those on the FTSE 100. Like Asia-focused bank HSBC Holdings (LSE: HSBA). And it’s definitely making money – with profits of $29.9bn in 2025. It made another $9.38bn in Q1.
Half-decade profits have been climbing at a fair old lick too, as this list shows:
- 2025 – $29.9bn
- 2024 – $32.3bn
- 2023 – $30.3bn
- 2022 – $17.1bn
- 2021 – $18.9bn
The 2025 dip doesn’t worry me too much. That was mostly due to one-off items such as restructuring, legal provisions and asset sales.
Can HSBC shares keep climbing?
The HSBC share price has had a stellar run. It’s up 60% in the last year, and a staggering 250% over five. Frankly, if SpaceX posted that kind of growth from here, we’d all be raving about it.
HSBC may struggle to maintain that pace of growth. The Chinese economy has been shaky, with concerns about its property and shadow banking sector. The board has paused its generous share buyback programme to fund the $13.7bn acquisition of Hong Kong’s Hang Seng Bank.
Beijing has just placed curbs on wealthy mainland Chinese using Hong Kong banking services, potentially hitting demand for HSBC’s services. So there are risks here too. Yet I’ve bought its shares in both May and June.
Today, the HSBC share price looks reasonable value with a forward price-to-earnings ratio of 11.6. Unlike SpaceX, there’s income on offer too. HSBC’s forecast to yield 4.46% this year, rising to 4.98% in 2027. I’ll consider buying even more HSBC shares in the weeks ahead, but will tread carefully around SpaceX.
Should you invest £5,000 in Space Exploration Technologies Corp. - Class A right now?
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Harvey Jones owns shares in HSBC Holdings.
