CNBC's Jim Cramer said Wednesday that investors evaluating SpaceX should adopt a decades-long investment horizon following the company's 13.6% stock decline. SpaceX shares fell on Wednesday as Wall Street assessed the rocket-and-AI company's first earnings report since its June IPO, which showed revenue topping expectations but disclosed sharply higher capital expenditures. Cramer argued the stock should be viewed as a multi-generational investment comparable to century-long railroad holdings, stating investors focused on quarterly performance are missing the company's long-term value proposition.
SpaceX Stock Declines Following Q2 2026 Earnings Report
SpaceX shares fell 13.6% on Wednesday following the company's first earnings report since its June IPO. The Q2 2026 earnings showed revenue in the quarter topped expectations, though the company disclosed sharply higher capital expenditures. The "Mad Money" host stated, "SpaceX could be a 100-year piece of paper," comparing the investment to century-long railroad holdings that ultimately rewarded patient investors.
Cramer Recommends Multi-Generational Holding Strategy
Cramer said investors should "stop thinking in quarters and start thinking in decades" when evaluating SpaceX. He suggested investors "put some away for the next generation or even the one after that." Cramer stated, "I would never recommend SpaceX if Musk weren't involved," adding, "I'm confident that Musk can raise all of the money he needs." He acknowledged the stock could face additional near-term pressure but argued investors focused on the next few quarters are missing the bigger picture.
SpaceX Business Segments Include Starship and Starlink
Cramer pointed to several growth opportunities across the company, including Starship, Musk's fully reusable rocket program; Starlink's expanding satellite internet business; and SpaceX's growing compute footprint. Currently, SpaceX has compute-rental agreements with Claude creator Anthropic and Alphabet's Google. Cramer said those businesses may take years or even decades to reach their full potential. "One day this stock could be a huge winner," he said. "I just don't know when that day will come."
911 Million Shares Become Eligible for Trading Thursday
Cramer acknowledged the stock could face additional near-term pressure with approximately 911 million previously locked-up shares becoming eligible for trading Thursday. While SpaceX's ambitions will require enormous amounts of capital, Cramer said Musk has consistently proven he can raise money for projects many initially dismissed as unrealistic.
FAQ
Why did SpaceX stock fall on Wednesday?
SpaceX shares fell 13.6% on Wednesday as Wall Street digested the company's first earnings report since its June IPO. While revenue in the quarter topped expectations, the company disclosed sharply higher capital expenditures.
What is Jim Cramer's investment recommendation for SpaceX?
Cramer said investors should adopt a decades-long investment horizon when evaluating SpaceX, comparing it to century-long railroad investments. He suggested investors "put some away for the next generation or even the one after that" and stated he would not recommend SpaceX without Musk's involvement.
What business segments does SpaceX operate?
SpaceX operates several business segments including Starship, Musk's fully reusable rocket program; Starlink's satellite internet business; and a growing compute footprint. The company currently has compute-rental agreements with Anthropic and Alphabet's Google.
