The Future Fund LLC Managing Partner Gary Black on Sunday said investors are breaking the "number one rule in investing" by treating Space Exploration Technologies Corp.
(NASDAQ:SPCX) as a great stock simply because it is a great business.
'Don't Conflate A Great Business With A Great Stock' Black, in a post on X, said his criticism was not directed at SpaceX CEO Elon Musk or its long-term prospects, adding that the company may be a "great, uniquely positioned business" but that investors should distinguish between the quality of a business and the price they pay for its shares.
He said SpaceX's roughly $1.7 trillion market capitalization "shouldn't mathematically" command a forward enterprise value-to-revenue multiple of about 40 times, calling it a valuation with no historical precedent among trillion-dollar companies.
I asked Grok if there has ever been a company in the history of the stock market like $SPCX with more than $1 trillion market cap that traded for over 40x forward EV/Rev?Grok’s response: No, there has never been a company with a sustained >$1 trillion market cap trading at…— Gary Black (@garyblack00) July 19, 2026 Read Also: Top Analysts are Extremely Bullish on 3M Stock Ahead of Earnings: Here’s Why Black Compares SpaceX With Nvidia, Tesla And Other Mega-Caps After asking Grok whether any company with a market capitalization above $1 trillion had ever sustained a forward EV-to-revenue multiple above 40 times, Black shared the chatbot's response that none had, including the world's second most valuable company, Nvidia Corp.
