🚨 SpaceX Plunges 12%, Loses Over $205 Billion in Market Value
• SpaceX shares fell as much as 12% in early trading, wiping out more than $205 billion in market capitalization as investors worried about soaring AI spending and capital expenditures following the company's first post-IPO earnings report.
• Despite the selloff, major Wall Street firms remained largely bullish. Morgan Stanley reiterated an Overweight rating with a $300 price target and expects annual recurring revenue to exceed $100 billion by the end of 2026, with 2027 revenue projected at $102 billion.
• Wells Fargo maintained an Overweight rating but cut its target price to $215 from $230, citing potential delays in SpaceX's compute expansion plans despite management targeting more than 8 GW of capacity by 2027.
• Deutsche Bank ($235 PT), Goldman Sachs ($220 PT), Citigroup ($200 PT), JPMorgan ($240 PT) and UBS ($210 PT) all maintained bullish ratings, highlighting AI growth, Starlink expansion, data-center scaling and management's accelerated goal of reaching $1 trillion in revenue by 2030 or earlier.
• Analysts expect near-term volatility due to heavy spending, lockup expiries and execution risks, but see significant upside from partnerships with Anthropic, Google and Reflection AI, as well as future Starship and Starlink deployments.
$SPCX
• SpaceX shares fell as much as 12% in early trading, wiping out more than $205 billion in market capitalization as investors worried about soaring AI spending and capital expenditures following the company's first post-IPO earnings report.
• Despite the selloff, major Wall Street firms remained largely bullish. Morgan Stanley reiterated an Overweight rating with a $300 price target and expects annual recurring revenue to exceed $100 billion by the end of 2026, with 2027 revenue projected at $102 billion.
• Wells Fargo maintained an Overweight rating but cut its target price to $215 from $230, citing potential delays in SpaceX's compute expansion plans despite management targeting more than 8 GW of capacity by 2027.
• Deutsche Bank ($235 PT), Goldman Sachs ($220 PT), Citigroup ($200 PT), JPMorgan ($240 PT) and UBS ($210 PT) all maintained bullish ratings, highlighting AI growth, Starlink expansion, data-center scaling and management's accelerated goal of reaching $1 trillion in revenue by 2030 or earlier.
• Analysts expect near-term volatility due to heavy spending, lockup expiries and execution risks, but see significant upside from partnerships with Anthropic, Google and Reflection AI, as well as future Starship and Starlink deployments.
$SPCX