The space between the pegs is wide enough to fit 5 guitars if they are aligned properly. I've had at times 3 electric guitars and 2 acoustic ones on it. However if one of the guitars was placed at an angle it would take up more than it's space. Also placing a guitar back on a stand in the middle positions, assuming all other slots are full, has to be done with a bit of care, especially if it has a tremolo arm. wider spacings between the pegs would be nice. But it works well enough for this price range.
As for stability, what can I say. It's pretty stable and the metal pieces which fold into each other at either side are quite stiff to unfold, so it holds it's shape very well.
I'm very happy with it and might just get another one in the future when I'll expand my guitar collection.
One thing I would have liked though was for the space between the bottom bars, the ones which keep the guitars off the floor to be a bit wider. That way, maybe my Jackson KV might fit without the edges touching the floor, but I guess that's more of a personal problem.