$SPCX
Phillip Securities sticks with Sell, price target $75.
The concerns are straightforward: AI revenue looks shaky, customer base is too concentrated, Space segment is bleeding money, and capex is running at 2.4x revenue.
When you're spending more than twice your revenue on capex while core revenue streams remain fragile and losses pile up in key divisions, the math doesn't work. This isn't about missing the AI story—it's about whether the business model can sustain itself at current valuations.
Concentration risk plus operational losses plus massive capital intensity is a tough combination to defend.
Phillip Securities sticks with Sell, price target $75.
The concerns are straightforward: AI revenue looks shaky, customer base is too concentrated, Space segment is bleeding money, and capex is running at 2.4x revenue.
When you're spending more than twice your revenue on capex while core revenue streams remain fragile and losses pile up in key divisions, the math doesn't work. This isn't about missing the AI story—it's about whether the business model can sustain itself at current valuations.
Concentration risk plus operational losses plus massive capital intensity is a tough combination to defend.