SpaceX vs. Meta Platforms: Which Will Reach the $2 Trillion Club First?

Although Space Exploration Technologies (NASDAQ: SPCX) reached the $2 trillion mark shortly after its initial public offering (IPO) in June, it has fallen significantly since then and is now valued at about $1.45 trillion. Meta Platforms (NASDAQ: META) has never been a member of the $2 trillion club, peaking at $1.988 trillion. Currently, it's valued at $1.5 trillion.

Of these two, which one will be the first to get into the $2 trillion club? This is an important question, as each stock will need to rise at least 33% to get there. If either one can do that during the next year or two, it would be a worthwhile investment, as it could outperform the broader market on its way to this exclusive club, which currently has only six members.

Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »

Meta Platforms' business is fairly simple to understand. For the most part, it's an advertising business. It operates several social media sites, including Facebook, Instagram, Threads, WhatsApp, and Messenger, and sells ads on them. This is an incredibly profitable business that generates nearly all of Meta's revenue and profits.

Meta is also heavily involved in developing AI models and spending significant money to realize its AI vision. While Meta has integrated AI across various parts of its advertising business, the market is still waiting for a meaningful AI model to come online and be useful to the public.

SpaceX is a much broader business. It owns xAI, the makers of Grok, which is actively competing against Meta's models. Additionally, xAI owns X, formerly known as Twitter, a competing social media platform. The similarities end there, as SpaceX also offers Starlink internet and other businesses that launch payloads into space.

SpaceX is a very wide business network, which is both good and bad. However, from a business standpoint, Meta is the established, dominant company in the social media segment. Still, I like the potential of the SpaceX business, so I'll give it the nod in this category, but I wouldn't argue with anyone if they named Meta the winner here either .

From a revenue growth standpoint, it isn't much of a contest. SpaceX's revenue grew 92% year over year in Q2, primarily driven by soaring AI and connectivity revenue. However, SpaceX is unprofitable and posted a $541 million loss for the quarter.