Space Exploration Technologies (NASDAQ: SPCX), or SpaceX, roared out of the gate following its initial public offering on June 12, reaching an intraday high of roughly $225.64 per share on June 16. As of this writing, the company's share price is down roughly 27% from that high point.

SpaceX has leading positions in rocket-launching technologies and satellite internet and mobile services, and it appears to be in the early stages of building a top artificial intelligence (AI) services business. Should investors buy the stock following its substantial valuation pullback?

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Does SpaceX stock offer compelling value right now?

SpaceX still has a market capitalization of roughly $2.16 trillion. At that valuation, the company trades at approximately 115 times last year's $18.7 billion in revenue. SpaceX posted annual sales growth of 33% in 2025, and there's a good chance the business is actually poised for meaningful acceleration when it comes to revenue growth this year, thanks to new AI processing contracts, expansion for the adoption of Starlink services and product portfolios, and continued growth for its rocket-launching services.

But there's a good chance that SpaceX's net loss will also expand significantly from last year. The business posted a net loss of roughly $4.9 billion last year, with its AI business accounting for the vast majority of those losses. Notably, the AI unit is the focal point of the company's growth ambitions -- and massive infrastructure spending this year should lead to a large increase in the business's net loss.

Even though SpaceX has seen a big valuation pullback following its post-IPO high, the company still trades at an enormously growth-dependent valuation. The likelihood that the company's net loss will jump significantly this year presents a big risk factor, and that isn't the only potential valuation headwind on the horizon. If investors become less willing to assign big valuation premiums to AI processing and space tech stocks, SpaceX stock could continue to tumble.

With that in mind, I think that investors who want to own a piece of the company will be best served by waiting for a better entry point.

Should you buy stock in Space Exploration Technologies right now?