CNBC’s Becky Quick reported that Elon Musk’s SpaceX (NASDAQ:SPCX) tapped the bond market for $25 billion in a sale that priced less than two weeks after its record-breaking IPO. The deal landed at terms typically reserved for the highest-quality corporate borrowers, signaling that fixed-income investors are willing to lend to the newly public space, connectivity, and AI company on terms close to those granted to America’s most established blue-chip companies.
SpaceX Had $90 Billion of Orders for the $25 Billion Debt Raise According to Quick, the financing was priced across five tranches with 5, 7, 10, 20, and 30-year maturities. The benchmark 10-year notes were priced at just 1.4 percentage points above U.S. Treasuries, an unusually tight spread for a company that only recently began trading publicly. For context, the 10-year Treasury yield closed at 4.51% on June 22, 2026, near the upper end of its 12-month range that spanned 3.97% to 4.67%.
People familiar with the fundraising told CNBC that the sale drew close to $90 billion in orders, well in excess of the $25 billion offered. SpaceX said the proceeds will be used to repay a bridge loan and fund other corporate purposes, shifting the capital structure from short-term bridge financing toward a layered ladder of long-dated debt.
The Credit Market Is Treating SpaceX Like a Blue-Chip Company The 1.4 percentage point spread on the 10-year tranche is the headline number for credit investors. Spreads in that neighborhood are typically associated with single-A or strong triple-B issuers with long, predictable cash flow histories. SpaceX is a brand-new public reporting company whose valuation, as The Atlantic recently put it, looks “untethered from traditional corporate finance metrics.” The willingness of bond buyers to take that spread and submit roughly $90 billion in orders against a $25 billion book indicates the credit market is treating the company as a strategic infrastructure operator rather than a speculative growth name.
That framing aligns with how Defiance ETFs CIO Sylvia Jablonski has described the business, arguing investors are underestimating SpaceX by viewing it solely as an aerospace firm when its multi-platform footprint spans launch operations, communications, defense, and AI connectivity. The company’s Starlink network, powered by approximately 9,600 satellites in Low-Earth Orbit, now delivers service across 164 countries, territories, and other markets, and the company has launched more than 80% of the world’s mass to orbit each year since 2023. That kind of recurring, infrastructure-like revenue base is exactly what fixed-income desks look for when underwriting investment-grade paper.
The Stock Has Slumped, But the Bond Market Isn’t Worried The bond market’s enthusiasm contrasts with how SPCX has traded since its debut. The IPO priced at $135 and peaked at over $225 before retreating. Shares were trading near $153.57 in early action on June 24, after a 22.64% slide over the prior week. The pullback has not dented the company’s status as one of the most valuable issuers on the NASDAQ, with a market capitalization of roughly $1.16 trillion.
What to Watch Next For stockholders, the debt raise removes a near-term overhang by extending the bridge loan and locking in financing across a 5- to 30-year maturity ladder. For credit investors, the combination of a 1.4 percentage-point 10-year spread and roughly $90 billion in demand suggests the institutional credit market has already made up its mind, even as public equity traders continue to debate the right valuation for the company.
Space Exploration Technologies (SPCX +0.44%), aka SpaceX, has been the talk of the town. The rocket launch, satellite, and artificial intelligence (AI) company had its initial public offering (IPO) earlier this month, and to say it was a success might well be an understatement. The company raised $85.7 billion, the stock jumped 19% on its first day of trading, and its market cap jumped to a cool $2 trillion.
And while it was undoubtedly the biggest, SpaceX wasn't the only blockbuster IPO so far this year. AI chipmaker Cerebras Systems (CBRS 18.18%) debuted to much fanfare last month, soaring 68% on its first day of trading after selling 34.5 million shares in all and raising $6.38 billion. Moreover, the successful debut was seen as paving the way for the upcoming SpaceX IPO.
Cerebras reported its first financial results as a public company, offering an important lesson for SpaceX investors. Let's dive into the details.
Image source: The Motley Fool.
All investors wanted and moreFor the first quarter, Cerebras generated revenue of $193.4 million, up 94% year over year and 13% sequentially. The results were driven higher by hardware revenue of $110.6 million, up 59% year over year, and by cloud and other services revenue, which surged 178% to $82.8 million. The company also edged closer to profitability, with an adjusted loss per share of $0.04.
For context, Wall Street's consensus estimates were guiding for revenue of $181 million and an adjusted loss per share of $0.16, so the chipmaker surpassed expectations on both counts.
Cerebras highlighted several recent wins that bode well for the future. The company entered into a multi-year partnership with Amazon Web Services (AWS) to bring its fast AI inferencing technology to the company's cloud customers. It also underscored a multi-year agreement with start-up OpenAI to provide 750 megawatts (MW) of computing capacity, in a deal valued at $20 billion.
The chipmaker provided an upbeat forecast. For the second quarter, Cerebras is guiding for revenue of $194 million, up 88% year over year, outpacing Wall Street's estimates of $174.3 million. The company also increased its full-year guidance for core revenue to a range of $855 million to $865 million, well ahead of expectations for $828 million. Management noted that its 47% gross margin would narrow as the year progressed.
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Cerebras' Wafer Scale Engine (WSE) is an AI chip that uses the entire silicon wafer, rather than cutting it down into hundreds of smaller chips. This process keeps all processing on a single chip, reducing the latency (time delay) inherent in communication between semiconductors.
Management noted that this gives the company an advantage over the competition, as it "delivers the fastest AI in the world." Speed is increasingly important in AI, as users seek answers and solutions more quickly.
This is all good news, right? In response to better-than-expected results and an improved outlook, the stock plunged 18% (as I write this).
What does this have to do with SpaceX?The first few quarters can be fraught with peril for any newly public company -- particularly in the wake of a blockbuster IPO. Investor expectations can be unrealistic, and the results may not go to plan, causing increased volatility. The stock could face a reckoning when SpaceX reports its first quarterly results in late July or early August.
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Moreover, the volatility could be amplified, as the company's staggered lockup expiration will likely complicate matters. Specifically, the first tier will be released just two days after SpaceX reports results, allowing the sale of 20% of shares held by employees and early investors. Furthermore, if the stock trades at 30% above its IPO price -- or $175 -- that could trigger the release of another 10% of insider shares.
Finally, SpaceX is selling for 110 times sales and 54 times next year's expected sales, which is exorbitant by any measure. A valuation of this magnitude will likely amplify volatility even further.
SpaceX could deliver a stellar earnings report, outpacing Wall Street expectations across the board -- and the stock could still plunge.
Tim Horan, Oppenheimer’s satellite and AI infrastructure analyst, went on CNBC Monday to defend a price target that sounds absurd until you back into the math. He kept his buy rating and $250 price target on SpaceX as the stock fell in its third consecutive session of decline, and floated a five-year valuation of $10 trillion. For context, that would make SpaceX (NASDAQ:SPCX) worth roughly the GDP of Germany and Japan combined.
The stock is having a rough debut. Shares are at $158, down from $192.50 a week earlier, and CNBC noted the average post-IPO buyer is almost underwater after the slide, with the five-day volume-weighted average sitting near $181. Tuesday brought a 5.34% bounce to $162.86, but Reddit has spent the past week dissecting threads with titles like “The math isn’t mathing on the SpaceX IPO” and “SPCX – Beware, institutional money is NOT buying this trash on the open market”. Horan is leaning into that doubt.
The vertical integration thesis What SpaceX is, in Horan’s framing, is no longer a launch company. “The company we think has doubled their valuation in the last six months by entering the AI market,” he told CNBC, “and we think they’re going to continue to do incredibly creative things.” The pivot point was the early-2026 acquisition of xAI, which folded Grok and its X-platform integration into SpaceX as a core business pillar.
That repositioning matters because of what Horan thinks the addressable market looks like. “They think AI is a $25 trillion TAM, and they are the only vertically integrated company that can attack every segment of this and really disrupt an awful lot of industries,” he said. Then the part that sounds like science fiction. “SpaceX is making their own solar panels. They want to make their own chips… build a fab that will create five times the amount of chips that the whole world is producing.”
Take that claim with appropriate skepticism. But the underlying point survives even if the fab is half that size. SpaceX already controls the launch stack. It launched more than 80% of the world’s mass to orbit annually since 2023, with Falcon rockets at over 99% mission success. Owning the rockets, the satellites, the ground network, the AI model, and eventually the chips is exactly the moat the bull case requires.
Starlink as the funding engine The cash to fund all of this is supposed to come from Starlink. “We think Starlink will be worth roughly $1 trillion,” Horan said. “Over the next 5 to 10 years they’re going to increase capacity a hundred fold. They already have about 12 million broadband subscribers globally. We think they could easily support a couple of hundred million.”
Moreover, the constellation is already enormous. As of March 31, 2026, Starlink served customers across 164 countries through roughly 9,600 low-Earth-orbit satellites, with a satellite-to-mobile layer extending coverage to about 30 countries. There is also a quietly compelling tailwind. A recent GAO assessment noted the Department of Energy projects data centers will account for up to 12% of U.S. electrical demand by 2028, driven by AI, and that since January 2026 the FCC has received three applications from U.S. companies for large satellite constellations operating as orbital data centers. If compute migrates toward orbit, the company that owns cheap heavy-lift launch capacity collects rent from everyone.
What can go wrong Horan named the near-term risk himself. “Short term it’s really getting the starship to work. We need the starship to kind of get the new communications satellites up.” Without Starship reaching reliable operational cadence, the hundredfold Starlink capacity expansion does not happen, and the $1 trillion in revenue Musk has targeted stays a slide.
For investors, the gap between Horan’s view and market consensus shows in the price action itself. SpaceX, registered with the SEC, currently trades around $158, well off its 52-week high of $225.64. The Atlantic this week described the stock as “a financial instrument for Musk, a meme, and a testament to the irrationality of the modern stock market.” Horan’s $250 target and $10 trillion long-term call assume the meme grows into the moat. The next twelve Starship launches will settle the argument.
While investors watch to see if and when SpaceX will be added to major stock indexes, other changes to some key market benchmarks are already on the way.
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AI Stock Market Leaders Thumped As SpaceX Takes Traders On Wild Ride; Three Strong Sell Rules To Use Now
Google-Parent Alphabet To Join Dow Jones Industrial Average, Replacing Verizon SpaceX late Tuesday announced it raised $25 billion in its inaugural bond sale, while demand for a piece of Elon Musk's rocket and AI company once again far outmatched supply. Rival Rocket Lab (RKLB) on Tuesday revealed that it completed a tactical response mission for the Space Force. SPCX stock rebounded modestly Wednesday, while other space stocks continued to trend…
SpaceX (SPCX 0.05%) has taken investors on a wild ride since its June 12 IPO. The aerospace and AI company went public at $135 per share, started trading at $150, and soared to a record high of $225.64 on June 16. But as of this writing, it trades at about $160.
SpaceX's stock pulled back because its valuation had gotten overheated. At its peak, its market cap briefly hit $2.66 trillion, or 142 times its 2025 revenue of $18.7 billion. It also only floated about 4% of its shares in its IPO, and that limited supply amplified its gains.
Image source: Getty Images.
Yet after that pullback, SpaceX is still worth $2.06 trillion, or 110 times last year's sales. That's a bubbly valuation for a company that grew its revenue by 33% in 2025. While market hype and rosy expectations could prevent its stock from dipping below its IPO price, it could face a reckoning once its lockup periods start to expire in about a month.
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When will SpaceX's lockup periods expire? When a company goes public, its insiders, early investors, and institutional investors are barred from selling their shares immediately. Instead, they generally need to wait until the traditional 180-day "lockup period" ends before they can sell those shares.
However, that's not a firm rule -- so companies can structure their lockup periods in different ways. Instead of waiting for 180 days, SpaceX will allow its insiders and early investors to sell their shares in several waves. The first wave will occur on the second trading day after its second-quarter earnings report in late July or early August.
On that day, SpaceX will unlock 20% of its shares held by its employees and early pre-IPO holders. If its stock closed at or above $175.50 per share for at least five of the ten consecutive days before the earnings release, it will unlock another 10% of its shares. It will continue to unlock 7% of its shares on Aug. 20, Sept. 9, Sept. 24, Oct. 9, and Oct. 24.
On the second trading day after its third-quarter earnings report in late October or early November, it will unlock 28% of its shares. On Dec. 8, it will unlock all of its remaining shares.
Why should investors watch these dates? SpaceX's stock could decline on those lockup dates as its insiders and early investors cash out. That selling could make it much easier and cheaper to short the stock. Therefore, if you believe SpaceX has a bright future but don't want to pay the wrong price for the right stock, those lockup expirations could create some good buying opportunities.
Seema Mody walked CNBC viewers through it earlier this week, with the kind of detail that suggests the bankers had already started circling. “SpaceX is exploring the prospect of this mega bond sale that could kick off as early as tomorrow, reportedly raising as much as $20 billion,” she said. That “as early as tomorrow” was the tell. The deal is happening into a stock that has given back a quarter of its post-IPO gains. As of Wednesday, SpaceX has successfully raised $25 billion.
A $25 billion follow-up to a $75 billion debut SpaceX’s $25 billion raise is coming less than two weeks after the company secured more than $75 billion in its IPO. Most companies spend years building toward a capital raise of that magnitude. SpaceX is stacking them in a fortnight. SpaceX (NASDAQ:SPCX) currently trades around $158, off roughly 22% from the $225 high it printed in the days after listing. The stock is down 19.69% over the past five sessions.
Why issue bonds now, with the equity on its back foot? Because the credit window is wide open and the use of proceeds points squarely at AI infrastructure. Proceeds would fund chip and compute purchases and continued investment in Grok, the large language model competing with offerings from OpenAI and Anthropic. Buying GPUs has become the cost of staying in the conversation.
The ratings agencies bless Starlink, raise an eyebrow at Grok SpaceX walked into this offering with a rare gift. Investment-grade ratings from all three of S&P, Moody’s and Fitch, with the agencies citing Starlink’s recurring subscription cash flow and the cost advantages of reusable rockets. Debt investors hunting for AI infrastructure exposure suddenly have a name they can put in a high-grade portfolio. Mody noted the obvious follow-on point. “Standard and Poor’s flagging its AI bet as the riskiest of the three business segments due to its massive upfront investments and the unclear monetization path.”
S&P is essentially saying the rockets and satellites will service the coupon. Grok is the speculative leg. Bondholders get paid by the boring stuff. Equity holders are funding the moonshot, and equity holders are currently down 25%.
SpaceX is not the only one issuing into the AI capex wave Mody framed the broader pattern. “Nearly every technology company has tapped the bond market to fund the AI build out… NVIDIA last week with a $25 billion bond sale. Google, Meta, Amazon as well.” NVIDIA (NASDAQ:NVDA | NVDA Price Prediction) issuing $25 billion of paper is the most interesting data point, because NVIDIA generates colossal free cash flow and does not, in any traditional sense, need to borrow.
Look at the Q1 FY27 numbers. Revenue of $81.61 billion, up 85.2% year over year, with Data Center revenue alone at $75.25 billion. Non-GAAP EPS of $1.87. Total supply-related commitments now sit at $119.0 billion, which is the actual answer to why even NVIDIA is borrowing. The supply chain is being prepaid years out. CEO Jensen Huang called the AI factory buildout “the largest infrastructure expansion in human history.” The Q1 FY27 8-K spells out the commitment math.
NVDA shares trade at $208.65, up 45.24% over the past year while SPCX has cratered in days.
What the crowd is saying while the deal prices Retail sentiment has flipped hard. The dominant Reddit post on r/stocks during the decline carried the headline “SPCX – Beware, institutional money is NOT buying this trash on the open market.” Composite sentiment on SPCX sits at 43.91, neutral with medium confidence. The social score of 27 drags the composite down. Analyst target sits at $187.80. That is 15.41% upside from current levels.
The bond deal will likely price into healthy demand. Investment-grade AI exposure with a Starlink coupon attached is scarce. Watch the spread at pricing, watch whether Grok gets called out in the prospectus risk factors the way S&P called it out, and watch the lockup calendar. The equity weakness so far has been pre-lockup. That is what should hold your attention.
Analyst’s Disclosure: I/we have a beneficial long position in the shares of SPCX either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.
Space Exploration Technologies Corp. (SPCX +1.11%), better known as SpaceX, is a more complex business than many people believed prior to its recent IPO. In addition to its industry-leading rocket launch business, the company has the highly profitable Starlink satellite internet service and the AI-focused xAI platform.
When it comes to the xAI business, much of the investment thesis has centered around the Grok AI model and long-term aspirational projects like putting data centers into orbit. But with three major deal announcements in recent months, investors are starting to see that there is more to SpaceX's AI business than many had thought. They're also seeing that it could become the company's primary revenue driver as soon as next year.
SpaceX's three compute deals -- so far It was a big surprise for many investors when SpaceX announced a deal with Anthropic shortly before its IPO. The AI company behind the popular Claude platforms agreed to lease about 300 megawatts of AI compute from xAI, the entire capacity of the Colossus 1 data center.
Image source: Getty Images.
The deal terms include Anthropic paying SpaceX $1.25 billion per month for a three-year term (ending May 2029), which equals $15 billion in annual revenue. For context, SpaceX's entire 2025 revenue was $18.7 billion, so this deal alone was a massive needle-mover.
Next, Google's parent company Alphabet (GOOGL +1.28%)(GOOG +1.12%) agreed to lease about 110,000 Nvidia (NVDA 0.29%) GPUs from SpaceX facilities, paying $920 per month beginning in October. So, this deal adds about $11 billion in annualized revenue.
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Just recently, Reflection AI became the company's third AI compute customer, agreeing to pay $150 per month ($1.8 billion per year) to access Nvidia AI chips at the Colossus 2 data center.
Between these three deals, SpaceX has added about $27.5 billion in annual revenue. Just for comparison, this means SpaceX just added about five times the annual revenue of cybersecurity giant CrowdStrike (CRWD 0.02%).
What's next? This new revenue stream represents an impressive strategy pivot. The company's Grok AI model was using only about 11% of its GPU capacity, so SpaceX decided to monetize the excess capacity.
Most significantly for SpaceX investors, this adds a large stream of recurring, high-margin revenue to a business that previously had an investment thesis based on things they might be able to accomplish years in the future. With many enterprise AI companies currently unable to secure Nvidia chip allocations as quickly as they need them, it wouldn't be too surprising to see this side of the business grow significantly over the next few years.
Matt Frankel, CFP® has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet, CrowdStrike, and Nvidia. The Motley Fool has a disclosure policy.
Space Exploration Technologies (SPCX +1.11%) just executed one of the biggest and most successful IPOs in history. After going public at a $1.77 trillion valuation, the company's market cap immediately soared above $2.5 trillion. Not bad for a business that generated a $4.9 billion loss in 2025, and another $4.3 billion loss in the first quarter of this year.
As the old adage says, however, what goes up must come down. Only 4.2% of SpaceX's outstanding shares are currently tradable on public markets, and this limited float makes the stock more prone to volatile ups and downs. That's exactly what we've seen with SpaceX stock thus far. After zooming from $150 per share to nearly $220 per share in a matter of days, SpaceX stock has settled back down to around $160 per share near market close on Tuesday -- a 27% drop also occurring over a matter of days.
Should you be buying the dip? That all comes down to how you answer one question.
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SpaceX investors should ask themselves this question Here's the question: Do you think orbital data centers will ever exist? Yes, SpaceX is generating modest profits in its rocket division. Yes, its Starlink internet service is also profitable. However, neither rockets nor Starlink will ever justify SpaceX's valuation on their own. Even SpaceX admits as much. The company's estimated total addressable market for those two divisions totals just $2 trillion. That's substantially less than the company's entire market cap today.
In reality, SpaceX's valuation is only justified if the company is able to grow its AI division substantially. SpaceX believes that AI alone presents a $26.5 trillion opportunity, compared to just $2 trillion for rockets and Starlink combined.
Image source: Getty Images.
How exactly will SpaceX grow its AI business? Most of this growth will stem from one opportunity: Roughly $22.7 trillion of SpaceX's claimed $26.5 trillion growth potential in AI is exclusively related to "enterprise applications." Enterprises are businesses, and the term is quite a catchall. According to SpaceX's IPO prospectus:
For enterprises and governments, frontier models and agentic AI -- autonomous systems capable of multi-step reasoning and independent task execution -- are beginning to manage increasingly complex processes and workflows. As of February 2026, more than 80% of Fortune 500 companies were using AI active agents. Entire industries are being reshaped by AI-driven applications, including agentic commerce (personalized AI-directed shopping), vibe coding (software development with minimal or no human-written code), and autonomous driving for vehicles.
Despite the variety of enterprise applications SpaceX will be pursuing, one thing is clear: The company will need a lot more compute power to make it all possible. That requires building more data centers, and data centers are facing critical growth constraints, including land, water, and energy availability. That's why SpaceX is looking to launch data centers into space. Low earth orbit data centers would -- at least on paper -- lower operating costs, taking advantage of limitless solar energy.
SpaceX CEO Elon Musk reportedly wants to put 1 million AI compute satellites into space, potentially beginning as early as next year. "We've got a pretty good idea of how to operate, just really large constellations, and do it safely now, right? We are the only operator that has any experience of that scale," Musk said earlier this year, according to Space.com.
Whether that will actually happen remains a huge unknown.
SpaceX stock has dipped in its second week of trading, but the investment thesis remains the same. If you're not bullish on AI in general, and in particular SpaceX's ability to launch data centers into space, shares likely aren't for you despite the company's promising rocket and Starlink divisions. Huge success in those two divisions alone won't be enough to justify SpaceX's current multitrillion-dollar valuation.
To be sure, plenty of experts are skeptical. "The pitch for space-based data centers is compelling: falling launch costs, abundant solar energy, no grid queues and no zoning battles," concludes a recent report from the World Economic Forum. "But cooling in space is far harder than it sounds – and the physics may be the biggest obstacle the industry has yet to reckon with."
Buying the dip is only worth considering if you believe SpaceX and Musk have the keys to overcome those obstacles.
After a full week of trading, Space Exploration Technologies (SPCX +1.11%) stock is up 15% from its first-day trading price. At this point, whoever wasn't able to participate in the initial public offering or didn't buy as soon as the opportunity arose may be biding their time for the next attractive entry point.
The next big event for SpaceX is its second-quarter earnings report, although there could be news pieces beforehand that move the stock, such as last week's announcement that it's going to acquire Cursor. Earnings reports give investors all sorts of new information about how the company is performing and what it's expecting for the future. These details help investors make informed decisions about their stocks.
Image source: Getty Images.
Shareholders can expect to hear this kind of information in the SpaceX earnings release, which is likely to be scheduled for sometime at the end of July or beginning of August for the three-month period ended June 30. But there's something else connected to the timing that might impact whether or not it makes sense to buy SpaceX stock at that time.
The first lockup period is ending When companies go public, they put restrictions on insiders from being able to sell shares immediately. This is meant to create stability while the stock enters the markets; if too many insiders were able to sell shares, it could flood the market and drive the price down. Keeping those shares out of the public market allows it to set a market price, and the stocks available for sale are predominantly the ones from the IPO. In this case, SpaceX's aim was to raise $75 billion, although it likely raised $86 billion with its overallotment. The company is worth $2.4 trillion right now, and the rest of the shares are locked up in various insider accounts, with Elon Musk having 85% ownership.
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In a standard IPO, the lockup period usually ends after 180 days, at which time there is often a flood of new shares. SpaceX has an unusual arrangement with staggered times for ending restrictions. The first period is the day after the second-quarter earnings report, which means that's the first day the market could see a flood of SpaceX shares available.
Since earnings reports can move the stock, investors often evaluate whether it makes sense to buy the stock beforehand, expecting a positive report. In this case, whether or not there's a positive report, there's a good chance that the new shares on the market could drive the stock down. Even without the lockup ending, SpaceX stock looks overpriced right now, and this is another reason to steer clear for the time being.
Jennifer Saibil has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
Space Exploration Technologies' (SPCX +1.11%) first week as a public company showed that investors were not valuing it like a normal rocket stock. They were paying for a platform that combines Starlink's satellite-internet cash flow, a dominant position in rocket launches, expanding artificial intelligence (AI) infrastructure, mobile connectivity, and the potential commercial success of the Starship reusable rocket system. And don't forget visionary Elon Musk leading it all.
Since then, SpaceX stock has pulled back sharply from its post-IPO high, closing at $154.60 on June 22. Investors seem to be already questioning the company's premium valuation. Here's what would need to go right for the stock to recover again by 2027 and why I predict it will trade at $192.
Image source: Getty Images.
The best-case target price Analysts estimate SpaceX's 2027 revenue could range from $54.8 billion to $79.3 billion, with the average estimate at $64.1 billion. The company has about 13.1 billion shares outstanding.
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Based on SpaceX's recent share price of $154.60 and the average 2027 revenue estimate of $64.1 billion, the stock is trading at 31.8 times projected 2027 sales. If that same multiple is applied to the high end of the 2027 revenue estimate of $79.3 billion, the company's market capitalization could rise to about $2.5 trillion. With a share count of around 13.1 billion, the company's share price would be about $192.
If SpaceX reaches the low end of the revenue estimate and still trades at about 31.8 times sales, the stock would be trading at roughly $133 at the end of 2027. If the price-to-sales multiple drops to 25, then the stock would trade at $104 per share with that revenue.
Premium valuation needs to be justified SpaceX's Starlink-powered connectivity segment is the key growth engine and generated $11.4 billion of revenue and $4.4 billion of operating income in 2025. Starlink's next challenge is adding high-quality subscribers. Average revenue per user (ARPU) has been declining since 2023 as Starlink expands into more international, lower-priced markets.
Consumer subscribers accounted for over 60% of the connectivity segment revenue in 2025. If revenue mix shifts toward enterprise and government customers, airlines, and maritime users, it could help Starlink offset falling ARPU.
Direct-to-cell lets ordinary smartphones connect directly to Starlink satellites when regular mobile towers are unavailable. Starlink Mobile already earns revenue through sharing arrangements with mobile network operators. The company has already launched around 650 satellites to enable mobile connectivity.
AI revenue also needs to scale while the business becomes profitable. If AI remains capital-intensive without a clear profitability timeline, it could become the reason for multiple compression.
The Starship reusable rocket system is another key growth catalyst. Starship does not need to be fully commercial by 2027. However, investors need to see enough progress to keep believing it can lower launch costs, support larger Starlink satellites, and strengthen SpaceX's long-term growth story.
A share price of $192 -- or more -- by 2027 is possible and is my prediction, but it requires a best-case setup where revenue reaches the high end of expectations and investors remain willing to value SpaceX as a space, connectivity, and AI infrastructure company.
Space Exploration Technologies (SPCX +1.11%) CEO Elon Musk just might be the first investor ever to think in trillions as a matter of course. For the world's first trillionaire investor, that probably makes sense -- but it's still a little mind-boggling.
Take Musk's latest post on X, for example:
In the future, a trillion times a trillion dollars will be spent on making antimatter to travel to other star systems
-- Elon Musk (@elonmusk) June 19, 2026 Most of us ordinary humans struggle to wrap our minds around just how big "a trillion" is. But here is Musk, running way out ahead of the rest of us and using the figure in ordinary speech -- sometimes twice in one sentence!
Image source: SpaceX.
Can SpaceX go from billions to trillions? Or take another example, this one from the SpaceX prospectus filed just before the IPO last week. In that document, the space/social media/artificial intelligence company argued that people should invest in SpaceX because it has "identified the largest [total addressable market] in human history." Across its three main businesses, space (rockets), connectivity (Starlink), and AI, Musk believes his company could potentially capture as much as $28.5 trillion in annual revenue.
Specifically:
$370 billion from space $1.6 trillion from connectivity ($870 billion from Starlink Broadband and $740 billion from Starlink Mobile and "additional opportunities") And $26.5 trillion from AI, including AI infrastructure, consumer subscriptions, digital advertising, and enterprise applications
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A trillion pipe dreams And Elon Musk thinks SpaceX can make that much revenue every year? This seems a mite ambitious. Recall that last year, SpaceX booked only $18.7 billion in total revenue across its three main divisions. Going from $18.7 billion to $28.5 trillion will require growing revenue a total of 152,300%.
To be fair, the prospectus never actually says when Musk believes SpaceX will reach a $28.5 trillion total addressable market. He might think that's the size of the addressable market today. He might be talking about 100 years from now.
All I know for sure is that, according to the statistics site worldomater.info, the gross domestic product (GDP) of the entire United States today is only $32.4 trillion. SpaceX seems to be saying that one day its own revenue stream will be 12% smaller than that of the United States -- or put another way, that up to 88% of the goods and services produced in the United States will be produced by SpaceX.
Like I said, ambitious.
Before relying too much on Musk's prediction, make sure to check your risk tolerance, just in case things don't work out quite as well as he's promising.
Rich Smith has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
SpaceX NASDAQ: SPCX is trading around $165, reflecting a 25% retracement from its massive post-IPO peak of $225.
A historic public debut initially assigned SpaceX a peak market capitalization of $1.77 trillion, fueled by unshakeable investor confidence in a perceived orbital monopoly. Equity markets are now aggressively digesting a structural shift in the core narrative.
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The Unproven AI Pivot Burns SpaceX CashSpaceX Today
$157.17 +1.06 (+0.68%)
As of 10:27 AM Eastern
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52-Week Range$147.11▼
$225.64Price Target$212.67
SpaceX management is rapidly mutating SpaceX from a pure-play aerospace sector titan into a sprawling, capital-intensive technology sector conglomerate. By diverting massive capital expenditures toward artificial intelligence (AI) data centers and using SpaceX equity to fund multibillion-dollar software acquisitions, leadership fundamentally alters SpaceX's risk profile.
The premium valuation previously awarded for orbital dominance is fracturing under the weight of escalating cash burn, macroeconomic headwinds, and a total reliance on a single, margin-compressed satellite unit.
Black Hole Balance Sheet: The AI Cash DrainSpaceX's post-IPO price action illustrates a textbook repricing of capital allocation risks. Days after raising $75 billion in the public markets, SpaceX executed a $60 billion all-stock acquisition of Anysphere, the developer of the coding platform Cursor.
For investors, SpaceX's strategic decision to use inflated equity as currency to acquire a terrestrial software entity will result in an immediate 3.4% equity dilution for SpaceX shareholders. Expanding the SpaceX share count to fund non-core software operations immediately ahead of impending lock-up expirations actively destroys shareholder value.
This aggressive pivot toward artificial intelligence infrastructure requires intense upfront capital expenditures. Developing data centers creates a severe cash drain that directly cannibalizes liquidity needed for SpaceX's core orbital logistics.
A recently signed $6.3 billion agreement for computing power with open-source startup Reflection AI highlights this shift. While the deal guarantees SpaceX $150 million in monthly recurring revenue starting July 1, 2026, the agreement requires granting Reflection AI access to NVIDIA Corp. NASDAQ: NVDA GB300 infrastructure at the SpaceX Colossus 2 data center. Building and maintaining outsized data centers to support external artificial intelligence clients strips resources away from core SpaceX launch vehicle development.
Colliding Orbits: The Tesla Merger ThreatInstitutional options positioning indicates the broader market is pricing in another major structural threat. Rumors suggest an impending, highly dilutive stock-swap merger involving Tesla Inc.'s NASDAQ: TSLA artificial intelligence and robotics divisions. The rumor hints at the absorption of Tesla's terrestrial electric vehicle operations and the consumer robotics segment, forcing a total re-rating of the SpaceX business model.
Aerospace investors typically pay a massive premium for pure-play monopolies. By blending aerospace logistics with auto manufacturing, artificial intelligence, robotics, and software development, SpaceX invites a massive conglomerate discount.
Complex, multi-industry holding companies historically trade at lower multiples than specialized peers because capital is routinely misallocated across underperforming divisions. SpaceX currently trades at roughly 29 times estimated 2027 sales and 71 times enterprise value to earnings before interest, taxes, depreciation, and amortization (EBITDA). An EBITDA multiple of 71x requires absolute operational perfection. A conglomerate structure leaves SpaceX no room for operational friction.
Starlink Margins Fall Back to Earth FastA fundamental disconnect between the underlying launch segment and the profitable Starlink satellite unit presents immense systemic risk for SpaceX. Core launch operations function largely as a break-even entity designed to facilitate orbital deployment. SpaceX relies almost entirely on Starlink for positive free cash flow.
While Starlink subscriber counts continue to climb, aggressive expansion into emerging markets is driving persistent compression in average revenue per user.
Average revenue per user dropped from $99 per month in 2023 to $66 per month in the first quarter of 2026. Launching and maintaining a low-earth-orbit satellite costs SpaceX the same regardless of whether the end-user pays high-tier enterprise rates in North America or heavily subsidized rates in emerging markets. Failing to stabilize these unit economics while simultaneously expanding massive data centers threatens the SpaceX balance sheet.
A $20 billion senior unsecured notes offering is currently underway, serving as a stark reminder of the required leverage SpaceX needs to operate. The bond market absorbed the debt comfortably due to investment-grade ratings from S&P Global and Moody's, allowing SpaceX to refinance legacy 12.5% junk bonds with manageable 4.58% debt. Equity investors are looking further down the road. Financial modeling from Oppenheimer projects SpaceX's net debt could balloon from roughly $13 billion to over $400 billion by 2031 to sustain continuous orbital deployment and massive data center builds.
SpaceX (SPCX) Price Chart for Wednesday, June, 24, 2026
Micro Float Meets Macro Gravity for SpaceXBroader macroeconomic mechanics are accelerating the SpaceX sell-off. A hawkish pivot at the recent Federal Reserve meeting under Chair Kevin Warsh has driven U.S. Treasury yields higher. Rising yields mechanically punish long-duration, high-multiple growth equities like SpaceX by heavily discounting future cash flows.
These macroeconomic headwinds are amplified by extreme artificial scarcity in the secondary market. Only 5% of SpaceX's outstanding shares are currently traded in the public float, creating severe supply-and-demand imbalances.
This microscopic float generated record-breaking derivatives volume, with 1.8 million single-name options contracts exchanging hands for $2.8 billion in premium during the first trading session alone. Heavy institutional anchoring at the $200 strike currently acts as a defensive ceiling for SpaceX. Asset managers are heavily capitalizing on this downward momentum, launching inverse products like the Leverage Shares 2x Short SPCX Daily ETF NYSEARCA: SSPC to directly fade the SpaceX premium multiple.
Safe Landings in the Commercial Space SectorThe commercial space sector maintains strong secular tailwinds, driven by sustained government defense spending and private infrastructure demand. SpaceX simply features an equity valuation that severely misprices its impending capital expenditure trajectory and upcoming equity dilution.
Investors may want to consider rotating capital from premium-priced megacaps with unproven AI ventures into fundamentally sound aerospace pure-plays. Risk-averse market participants may favor a space-focused ETF such as the Procure Space ETF NASDAQ: UFO. For SpaceX, higher-risk investors should await the late 2026 lock-up expirations to allow improved float liquidity before establishing long-term positions.
Should You Invest $1,000 in SpaceX Right Now?Before you consider SpaceX, you'll want to hear this.
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On Monday, a Wall Street analyst wrote favorably about certain semiconductor stocks with a vendor relationship to Elon Musk's Space Exploration Technologies (SPCX 0.03%), or SpaceX.
While several companies in SpaceX's supply chain were mentioned as beneficiaries, most of the mentioned stocks are at or near their all-time highs. However, one AI infrastructure stock should also benefit, perhaps even more than the others, and it's the only stock in the group trading at a reasonable valuation, 75% below its all-time high.
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Why SpaceX vendors are poised to benefit On Monday, GF Securities analysts Jeff Pu and Alicia Xia wrote a note saying that, as SpaceX has begun renting out excess computing power to other AI companies, and given that it just raised a whopping $86 billion in last week's initial public offering, there shouldn't be any obstacle to SpaceX building a massive amount of computing infrastructure. The theory is that this will benefit AI hardware makers that already have a strong relationship with SpaceX.
SpaceX's recent acquisition of Cursor should help improve both SpaceX's Grok models and Cursor's internal models, boosting demand for SpaceX's internal AI computing needs. But even if that doesn't work out, SpaceX's recent decision to rent out its capacity to other rival AI companies and hyperscalers should be a promising "fallback" option.
According to analysts, SpaceX brought up its massive Colossus 1 and 2 AI data centers in just 122 days and 91 days, respectively -- a significantly shorter time frame than a typical data center build-out. Shorter construction durations mean lower costs and increased revenue, suggesting SpaceX's burgeoning "neocloud" business is likely highly profitable.
Super Micro Computer has been a key partner in Colossus The company most responsible for SpaceX getting Colossus up in record time is Super Micro Computer (SMCI 1.11%).
The controversial server maker is a U.S. company that has had to compete with low-cost Asian rivals in the server business. To do so, CEO Charles Liang has focused on key features, such as lower energy leakage, as well as on being faster than rivals at building and delivering customized server racks.
Supermicro's "premium" server status has often been a staple in enterprise on-premises data centers, as well as newer AI-oriented "neoclouds." Large cloud hyperscalers with in-house server assembly and data center expertise typically use lower-cost Asian "white box" server providers.
However, it appears Supermicro's low-power, customized, and fast server racks caught Elon Musk's eye, with Musk using them in both the SpaceX Colossus I and II AI data centers. Supermicro noted that in its December quarter, one major customer accounted for a whopping 63% of its revenue. This was very likely xAI, now SpaceX, given that the Colossus II data center became operational in January. Musk noted that Colossus II was the first 1 GW training cluster ever built and that xAI would expand it to 1.5 GW by April.
Given that SpaceX just received a fresh cash injection from its IPO, just purchased AI coding leader Cursor AI, and can apparently rent spare capacity to others, it is highly likely to continue buying lots of servers from Supermicro going forward.
Image source: Getty Images.
Why Supermicro can be had at a discount Unlike the other beneficiaries of SpaceX's build-out, Supermicro can be had at a reasonable-looking valuation of 18 times trailing earnings and a stock price 75% below its all-time highs set back in 2024.
The company has endured two major scandals in the past two years, along with one overriding financial concern. In 2024, Supermicro's auditor resigned after a short-seller questioned the integrity of its financials. Then, just a few months ago, two Supermicro employees, one of whom was a board member, along with an outside contractor, were indicted for a scheme to smuggle its servers into China through third-party intermediaries, in violation of export restrictions.
Furthermore, Supermicro's gross margins have come under pressure over the past couple of years due to both lower margins on expensive AI servers and, as noted earlier, likely very high SpaceX bargaining power.
However, Supermicro appears to be putting these controversies behind it. Whatever accounting practices Supermicro engaged in that led to its prior auditor resigning, the new auditor, BDO, signed off on Supermicro's books in early 2025. Likely, the company's revenue recognition or back-office processes were unorthodox, but Supermicro is a 33-year-old company with top-tier tech clients, such as SpaceX. So, it doesn't appear there was anything fraudulent.
As for the recent server-smuggling case to China, Supermicro actually aided authorities in uncovering the scheme, so it does not appear to be a violation by the company. Moreover, Supermicro helped thwart another such plot in late May, seeming to validate its seriousness in combating smuggling and validating its innocence in the prior case.
On the margin front, Supermicro recorded a huge 3.6-percentage-point increase from the December quarter to 9.9% in gross margins during its March quarter. Now, one could say that the low gross margins of the December quarter were in fact due to SpaceX's massive bulk buying and that those margins could remain low for SpaceX purchases going forward.
However, Supermicro is likely to lower costs as it repeats these massive projects and fills out its manufacturing capacity. That should improve gross margins solely due to utilization. Furthermore, working with Musk is giving Supermicro a bit of a "brand halo," which the company can use to charge higher prices to other smaller customers.
The SpaceX partnership should serve Supermicro well Despite the initial, early-stage gross margin hit, Supermicro seems poised to benefit from its partnership with SpaceX, given the high future SpaceX demand and the reputational boost from working with Musk. For those willing to bear the risk of another governance slip-up, Supermicro appears the most reasonably priced of the major AI hardware stocks today.
The commercial space economy is changing fast. The cost of delivering payloads into orbit is declining rapidly, a powerful tailwind that creates exceptional revenue potential for companies in the aerospace sector. The secular expansion of global satellite networks isn't a future idea anymore. It is an active, physical economy generating real cash flows. Investors are rightly looking at low-Earth orbit as the next major growth frontier, recognizing that orbital infrastructure will power global communications for decades to come.
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Diluting the Dream: SpaceX Becomes a ConglomerateSpaceX NASDAQ: SPCX is currently broadcasting severe financial warning signs during this sector-wide boom. The company recently executed the largest public debut on record, raising over $85 billion after underwriters fully exercised their overallotment options. Investors naturally assumed SpaceX would deploy that capital directly toward deep-space launch capabilities or orbital logistics. Instead, SpaceX is using it to mutate into a highly leveraged technology conglomerate.
SpaceX Today
$157.17 +1.06 (+0.68%)
As of 10:27 AM Eastern
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52-Week Range$147.11▼
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The story of an untouchable aerospace monopoly is starting to crack. SpaceX has made a surprise push into AI infrastructure and is leaning on unsecured debt to fund it. By directing resources toward terrestrial server racks rather than orbital dominance, SpaceX is actively diluting the premium valuation that retail and institutional investors just paid top dollar to acquire.
This figurative dilution of the company's aerospace premium was immediately followed by a literal dilution of its shares. Just days after the public offering, SpaceX executed a $60 billion all-stock acquisition of Anysphere, the developer of the AI coding platform Cursor. By using its newly minted public equity as currency to acquire the software startup, management triggered an immediate 3.4% dilution of existing shareholders' equity. Expanding the outstanding share count to fund non-core software operations ahead of impending insider lock-up expirations actively eroded the value that retail investors thought they had just purchased.
Salvage Operations: Renting Out Failed AI InfrastructureTo understand the shifting fundamentals at SpaceX, you have to look at how capital is currently being allocated on the ground. SpaceX leadership has increasingly diverted resources toward massive, capital-intensive AI infrastructure.
Initially, SpaceX built the Colossus 1 supercomputing cluster in Memphis, Tennessee, to train large language models. Internal engineering teams quickly hit a technical wall. Latency bottlenecks severely restricted data transfer speeds between campuses located 10 miles apart, rendering the supercomputer entirely unusable for its intended internal training purposes.
Instead of writing down the technical failure, SpaceX pivoted to a landlord model. SpaceX began renting out the Colossus 1 compute capacity to Anthropic for $1.25 billion per month. Now, SpaceX is doubling down on this real estate strategy. SpaceX recently signed a $6.3 billion agreement with Reflection AI to lease graphics processing units at its Colossus 2 data center, generating an additional $150 million in monthly recurring revenue.
Finding external tenants to monetize sunk infrastructure costs might look like a savvy salvage operation to a casual observer. Structurally, though, it transforms the aerospace pioneer into an infrastructure middleman. Maintaining massive data centers to support external clients strips focus and cash away from core launch vehicle development. This compute lease also features a mutual 90-day cancellation clause. Relying on highly fragile, easily terminated contracts to justify astronomical capital expenditures leaves SpaceX deeply exposed if the AI spending cycle cools.
Unsecured Baggage: The $20B Post-IPO Debt TrapThe most glaring red flag for fundamental investors arrived just 10 days after the public offering. Despite boasting a reported $100.8 billion cash balance heavily padded by IPO proceeds, SpaceX immediately tapped the bond market to issue $20 billion in senior unsecured notes.
When an executive team raises record equity capital only to immediately issue massive unsecured debt, the broader market takes notice. Issuing debt so quickly after a historic stock debut suggests that core operating cash flows are insufficient to self-fund ongoing capital expenditures.
The structure of the debt itself warrants intense scrutiny. Unsecured notes are not backed by physical collateral, such as launch facilities or satellite constellations. They operate entirely on corporate faith and sit on equal footing with SpaceX's other senior debts. By injecting an additional $20 billion in unsecured obligations into the capital stack, SpaceX is actively pushing public shareholders further down the line to get paid in the event of a liquidation or restructuring.
Digging into the SEC filings reveals exactly what this capital raise was for. The $20 billion note offering is specifically earmarked to refinance a massive bridge loan from March 2026. SpaceX originally used that bridge loan to pay off xAI's debt after buying the company. The bond market is not funding the next generation of Starship. It is cleaning up the speculative, pre-IPO liabilities of a sister company.
Priced for Perfection, Grounded by Financial RealityEquity markets are rapidly repricing these capital allocation risks. SpaceX shares violently re-rated from a post-IPO peak of $225.64, plummeting 31.5% to $154.60. That downward momentum erased roughly $600 billion in market capitalization.
Trading at roughly 71X enterprise value to EBITDA requires absolute operational perfection. A sprawling conglomerate structure leaves no room for friction, yet friction is appearing right in the core cash engine.
SpaceX relies almost entirely on its Starlink satellite broadband unit for positive free cash flow. While subscriber growth remains steady, the company's aggressive expansion into emerging markets is triggering severe margin compression. Average revenue per user dropped drastically from $99 per month in 2023 to just $66 per month in the first quarter of 2026.
Launching and maintaining a low-Earth orbit satellite costs SpaceX the exact same amount regardless of whether the end-user pays high-tier enterprise rates in North America or heavily subsidized rates globally. Failing to stabilize these unit economics while simultaneously funding massive terrestrial data centers threatens to break the balance sheet. With long-term financial modeling projecting that net debt could balloon to $400 billion or more by 2031, the transition from an asset-light innovator to a heavily leveraged, hardware-centric utility is in full swing.
Safe Landings: Getting on the Right ShipThe retail frenzy surrounding the historic IPO temporarily drained cash from the rest of the aerospace sector. Portfolio managers and individual investors liquidated positions in smaller space companies to chase the headline event. This capital rotation triggered a sharp sell-off across the industry, heavily discounting otherwise sound aerospace businesses.
Savvy investors recognize that this sector dilution represents a profound mispricing of risk and creates highly attractive entry points for pure-play operators unburdened by AI bailouts or legacy debt.
Rocket Lab NASDAQ: RKLB and AST SpaceMobile NASDAQ: ASTS offer unencumbered exposure to the secular expansion of the space economy. Both operators maintain clean balance sheets, possess proven orbital delivery systems, and have upcoming catalysts, without carrying an astronomical forward multiple. For those seeking diversified exposure to the broader macro tailwinds of space commercialization without single-stock execution risk, the Procure Space ETF NASDAQ: UFO provides a highly strategic vehicle.
Investors heavily allocated to SpaceX may want to strictly evaluate their risk parameters as the massive August lock-up expirations approach. Cautious investors might prefer to wait for the conglomerate discount to fully materialize, opting instead to capture orbital growth through heavily discounted satellite and launch infrastructure operators that were temporarily left behind in the liquidity drain.
Should You Invest $1,000 in SpaceX Right Now?Before you consider SpaceX, you'll want to hear this.
MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and SpaceX wasn't on the list.
While SpaceX currently has a Moderate Buy rating among analysts, top-rated analysts believe these five stocks are better buys.
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Space Exploration Technologies (SpaceX) (SPCX 0.03%) has made its historic market debut, and it was more fantastic than expected. Since the initial public offering (IPO) had many more requests than shares available, the underwriting banks likely exercised their overall 15% allotment, and SpaceX raised $86 billion.
While SpaceX stock jumped more than 50% in the days following its IPO, it hasn't been able to hold on to all of its gains. As of this writing, SpaceX stock is up 17% from its IPO price. Interest in the stock remains high, for many reasons, including Elon Musk fandom and a desire to be part of the future of space travel.
Image source: Getty Images.
But for the retail investor, the end goal is putting your money to work for you. Over the long term, SpaceX may become the consequential company investors are hoping for. But even then, this may not be the best time to invest. Consider where the stock might be three months from now.
The historical precedent IPOs can offer exciting incentives for investors. Getting in at the beginning gives you the greatest opportunities for gains -- or does it?
With today's mega-IPOs, that's not necessarily the case. Many large tech companies land on the markets as expensive, highly valued companies, and that doesn't create the conditions for strong gains, at least initially.
Consider some of the largest U.S. IPOs and how they did after three months:
Some went up, and some went down, but the average is a 13% increase.
So far, SpaceX is unlike any other IPO in several ways and might prove different in three months. But markets move in specific ways, and no stock can outrun its fundamentals over time. If SpaceX stock mimics the average performance of these other top IPOs, then you would see a moderate gain in its stock price over the next three months, and $1,000 would be worth around $1,130.
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However, in three months, part of the lockup period will have ended. SpaceX has an unusual, staggered lockup structure, with 20% of insider shares allowed to be sold after the first earnings report, expected in late July or early August. There are some other conditions, and other lockups ending at different times between 70 and 135 days,with most of the remainder coming to market at 180 days.
Based on averages, SpaceX stock is likely to be slightly higher than its IPO price in three months, but it's volatile, so investors should probably avoid it right now.
SpaceX (NASDAQ:SPCX) has gone from Wall Street darling to battleground stock in less than two weeks. Analyst calls span everything from a hard Sell to blue‑sky AI moonshots, with valuation the clear fault line.
Space Exploration Technologies (SPCX 0.03%), better known as SpaceX, is the hottest new space stock to own. It only began trading earlier this month, but with a market cap of around $2 trillion, it's already among the most valuable stocks in the world due to its massive growth opportunities.
But what about a smaller player in the industry, such as Rocket Lab (RKLB 8.42%)? At a fraction of the size, with a market cap of around $60 billion, it may also stand to benefit significantly from greater investor interest in space stocks. Which one is the better buy today: SpaceX or Rocket Lab?
Image source: Getty Images.
SpaceX has a compelling growth story and strong retail interest Although SpaceX has a significant market cap already, investors don't appear to be overly concerned simply because of the massive growth potential the company has. In addition to space travel, SpaceX plans to be a leading company in artificial intelligence (AI), sending data centers into space. And its Starlink business is so promising that it has telecom investors worried about disruptions in that industry as well.
Plus, with Elon Musk as its CEO, SpaceX has that "it" factor that can enable it to trade at a higher valuation than what its fundamentals may justify. This is a company that incurred more than $4 billion in losses during the first three months of the year and is burning through cash at a rapid pace. And yet, investors don't appear concerned. While the stock has declined in recent days, it isn't exactly crashing the way some investors and analysts may have expected; there appears to be support for the stock at its current valuation, even though its fundamentals are by no means robust.
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With plenty of growth opportunities and significant interest from retail investors, SpaceX's stock may continue to be a hot buy this year, even if its fundamentals don't exactly support its high price.
Rocket Lab is a cheaper option with a potential growth catalyst on the horizon Rocket Lab isn't as diverse as SpaceX, as its focus is on space. It isn't profitable either, but with losses totaling $183 million over the trailing 12 months, they pale in comparison to SpaceX. From a valuation perspective, the stock also trades at around 80 times its revenue, which is lower than the multiple of more than 100 that SpaceX trades at.
The company generated strong growth in its most recent quarter, with quarterly revenue hitting a new record of over $200 million, rising by just under 64% year over year. Rocket Lab is also a trusted partner of the U.S. government, as it has secured over $1.3 billion worth of contracts thus far with the U.S. Space Development Agency.
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Later this year, the company plans to launch its larger Neutron rocket, which could open up greater opportunities for the business in the near term. It can carry payloads of up to 13,000 kg to low-Earth orbit, which is far more than the roughly 300kg its smaller Electron rocket can transport. A successful launch of Neutron could lead to Rocket Lab's stock also taking off.
Which stock is the better buy today? Both of these stocks are expensive and involve some risk due to their lack of profitability. SpaceX stock is compelling because it's more diversified and it has more varied growth opportunities than Rocket Lab. However, with a lower valuation, Rocket Lab may also have more room to rise higher.
While normally I might go with the better value buy, if I were picking between these two stocks, I'd go with SpaceX. Whether you're paying 80 times revenue or 100 times revenue, the premium is significant either way. Plus, the extra premium may well be justified given the larger, more diversified business you're getting with SpaceX and its visionary CEO, who has demonstrated a masterful ability to grow businesses over the years.
Item 1 of 2 The New Year's eve ball ascends on the day of SpaceX's initial public offering (IPO) in New York City, U.S., June 12, 2026. REUTERS/Brendan McDermid/File Photo
[1/2]The New Year's eve ball ascends on the day of SpaceX's initial public offering (IPO) in New York City, U.S., June 12, 2026. REUTERS/Brendan McDermid/File Photo Purchase Licensing Rights, opens new tab
SummaryCompaniesShort interest 13% of SpaceX free float from 8% - Ortex dataBorrow cost fell to about 1% from as high as 14% at launchNo squeeze, but if shares rebound short sellers could be hitNEW YORK, June 24 (Reuters) - Short sellers have increased their bets on further falls in the share price of Elon Musk's SpaceX after the stock's drop from highs scaled immediately after its market debut on June 12, data and analytics company Ortex Technologies said on Wednesday.
SpaceX's short interest, the total number of shares sold short as a percentage of the total shares available for public trading, is 13%, up from 8% in the prior session, Ortex said.
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"Short interest in SpaceX is building remarkably fast for a stock that has only been public a couple of weeks," Ortex co-founder Peter Hillerberg told Reuters.
The stock's drop of about 30% from the high of $225.64, scaled days after its debut, amid a wider selloff has drawn short sellers at a faster-than-expected pace.
"A jump like this is a clear sign that a growing number of traders are positioning for the price to fall sharply," he said.
SpaceX's $2 trillion valuation makes it a target for short sellers looking to bet on a drop in the shares, but strong retail and institutional interest and Musk's history of public battles against short sellers make that a risky proposition.
SpaceX did not immediately respond to a request for comment.
Initial euphoria over SpaceX has given way to more balanced trading as investors look to guard against further downside.
The cost to borrow, a gauge of demand to short a stock relative to the supply of shares available to lend, remains cheap at about 1%, Ortex data showed. It was as high as 14% when the shares started trading. Ortex sources its short selling data from daily global institutional stock lending inventories.
The Magnificent Seven stocks of Apple, Microsoft, Nvidia, Alphabet, Amazon, Meta, and Tesla are hardly shorted, with only about 1% to 3% of their free floats sold short. Borrow costs for them range from 0.25% to 0.33%, Ortex data showed.
Utilization, the share of available stock that is lent out, is about 39%, up from the mid-30s last week, signaling there is still ample supply available to lend, Ortex data showed.
While SpaceX may be facing selling pressure, its limited float size makes short sellers vulnerable to a "squeeze" if the shares were to jump in value for any reason, Hillerberg said.
With short interest at about 83 million shares, against the stock's average daily volume of about 270 million, a short seller rush to buy back shares could drive the stock higher.
"That kind of forced buying can land right on top of any rally and accelerate it well beyond what the fundamentals alone would justify, which is the classic short squeeze dynamic," Hillerberg said.
Reporting by Saqib Iqbal Ahmed; Editing by Alexander Smith
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SummarySpaceX’s 35% one-week drop erased more than $600 billion in market value, exposing how crowded the post-IPO trade had become.The correction may not be over, as retail FOMO and institutional profit-taking could still drive a deeper pullback.At the same time, crypto is facing a historic liquidity crisis as capital continues to rotate into AI, semiconductors, and SpaceX. Walter Cicchetti/iStock Editorial via Getty Images
After reaching a post-IPO high of around $225, SpaceX (SPCX) pulled back by roughly 35% in less than a week, briefly falling to around $147.
The SpaceX stock ticker is displayed on a smartphone screen placed on a reflective surface onto which a space illustration is projected, in Creteil, France, on June 19, 2026. The stock of SpaceX continues its consolidation phase on the New York Stock Exchange one week after its Nasdaq listing. (Photo by Samuel Boivin/NurPhoto via Getty Images)
NurPhoto via Getty Images
This article was written by Doug Nathman, with research by his team at Trefis.
SpaceX (SPCX) has experienced a 30% decrease over the past three trading days, which appears dramatic.
However, this decline is far from sufficient.
Following the recent selloff, SpaceX is still trading at approximately 100 times its trailing revenue and nearly 200 times its trailing EBITDA, despite revenue growth hovering around the low-30% range. With insider lockups approaching expiration, rival trillion-dollar AI IPOs on the horizon, and rising interest-rate expectations, the stock continues to seem overpriced.
The Lockup Countdown Is ProceedingWhen a company becomes publicly traded, insiders and employees are generally restricted from selling their shares for a defined duration following the IPO. At SpaceX, these restrictions will soon begin to lift. A 20% insider share unlock will occur after earnings in early to mid-August, with subsequent 7% unlocks planned around August 21 and September 10. Additionally, a separate 10% unlock will automatically be triggered if the stock trades 30% above its IPO price. SpaceX has a vast workforce heavily compensated with equity shares, and even a small percentage deciding to sell could result in a supply oversupply that the market has yet to account for. Previous large IPOs such as Facebook and Uber have shown significant secondary declines upon lockup expiry, and none faced an unlock schedule as aggressive as this one. Insiders might inundate the market with as much as 44% of shares by early September, potentially amplifying the current float by approximately 900%.
OpenAI And Anthropic IPOsThe most significant competitive IPOs anticipated over the coming months are not standard tech offerings. OpenAI and Anthropic have already lodged confidential filings for their IPOs, with Anthropic filing in early June and OpenAI shortly thereafter, paving the way for expected high-profile launches in late 2026. Both companies are projected to be valued at over a trillion dollars and possess narratives about transforming the global economy. Institutional investors have limited capital and an appetite for speculative risk that is also finite. Combined, OpenAI and Anthropic might pursue hundreds of billions in investor capital, creating a compelling alternative destination for growth-focused funds. This situation could directly affect SpaceX.
Interest Rates And The New Fed Chair Are Significant VariablesAs inflation begins to increase again and a new Federal Reserve chair steps in, the prospect of sustained high rates has resurfaced. While Kevin Warsh maintained rates between 3.50% and 3.75% at his initial meeting, the committee's rhetoric has shifted considerably. Nine of his colleagues indicated support for rate increases this year, with six endorsing two quarter-point hikes. As of March, none of the policymakers had anticipated an increase. The inflation that has driven this shift is tangible: CPI reached 4.2% in May, the highest figure seen in three years, primarily due to the oil price surge linked to the conflict in Iran. SpaceX exemplifies a long-duration asset—most of the cash flows from Starship and SpaceX AI are over a decade away. Each increase of 25 basis points to the risk-free rate effectively reduces the present value of what terminal value is worth today.
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Fundamentals Do Not Justify The ValuationThe gap in valuation remains a challenge to rationalize. Our discounted cash flow model suggests a fair value of approximately $79 per share, indicating a valuation of about $1 trillion. Many critical assumptions reflected in the current price appear overly optimistic. Starlink’s ARPU is decreasing as subscriber growth begins to shift towards lower-income international markets. The launch business remains reliant on recycling Falcon 9 profits into Starship development, while Starship itself has yet to exhibit dependable commercial operations at scale. Furthermore, underwriters have positioned SpaceXAI as a significant future growth engine, yet the venture remains highly speculative, burning nearly $8 billion per quarter with limited distribution. At the current valuation level, investors are essentially paying for flawless execution over coming years before it has actually materialized.
SpaceX is seeking investor support for an AI infrastructure thesis valued for flawlessness at multiples that afford little leeway for the unexpected. It becomes essential to balance speculative investments like this with established cash-generating platforms. A strategic portfolio approach can help you remain invested while mitigating the effects of market disruptions. Although regularly outperforming the market is a difficult endeavor, Trefis's High Quality (HQ) Portfolio is crafted to facilitate this goal. The HQ strategy has consistently excelled compared to its market benchmark since its inception, yielding cumulative returns exceeding 105 percent.
On the heels of its blockbuster IPO, SpaceX announced that it plans to acquire AI coding startup Cursor in an all-stock deal worth $60 billion by the third quarter of 2026. The deal would double the net worths of Cursor’s four young billionaire cofounders, Michael Truell, 25, Aman Sanger, 25, Sualeh Asif, 25, and Arvid Lunnemark, 26. Forbes estimates they will be worth $2.7 billion each.
They aren’t the only ones poised for a windfall from the deal. Early investors including Andreessen Horowitz (which reportedly owns a roughly 10% stake, worth $6 billion) and Thrive (which owns about 7%, worth $4.2 billion, per a source familiar) stand to win big from the deal too.
Cursor has come a long way in a short span of time. Founded in 2022 by four MIT friends and 30 Under 30 alumni, the startup started out as a coding tool for developers. After AI behemoth Anthropic launched Claude Code, Cursor found itself on the defensive, shifting to “war time” mode, as Forbes reported in March.
It appears to have worked. In early June, Cursor crossed $4 billion in annualized revenue, fending off stiff competition from both Anthropic and OpenAI, Forbes reported. Its revenue grew from $2 billion in February to $3 billion in late April. The uptick in revenue is in part due its new product Cloud Agents, which works on complex programming tasks for hours in the background.
Cursor first teamed up with SpaceX in April, when the rocket maker obtained the right to acquire it for $60 billion, or pay $1.5 billion in breakup fees and $8.5 billion in computing resources if the deal didn’t go through. SpaceX, which also acquired xAI in February, had been struggling to improve the capabilities of its models as AI researchers left en masse. But it has a ton of compute, thanks to its gigantic Colossus supercomputer. For the past few months, the two companies have been jointly training a new AI model that will be released in Cursor and xAI’s Grok, SpaceX said in a post.
Now let’s get into the headlines.
BIG PLAYS
On Friday, Anthropic abruptly disabled its new AI model, Fable 5, after the U.S. government issued an order to ban foreign nationals from accessing it, citing national security concerns. The directive came after government officials learned of a way to jailbreak the powerful model’s safeguards. Fable 5, a more secure version of Anthropic’s Mythos family of models, had been in restricted access for months and was launched just days earlier to millions of people. A group of tech leaders including Amazon CEO Andy Jassy had flagged concerns over the model’s security risks to senior Trump officials last week, Reuters reported.
“You have to make a judgment call on these things,” Anthropic’s Chief Commercial Officer Paul Smith told Forbes just hours before the order was issued. “The safest you can be is to not let people use something. And then it’s totally safe. But then how is that helping the mission?”
Also notable: OpenAI’s spending reached $34 billion last year amid a neck-in-neck race with rival Anthropic to dominate the AI market, the Financial Times reported. The giant’s costs far outweigh the $13 billion in revenue it booked in 2025.
SHOW ME THE MONEY
SpaceX’s historic IPO made scores of stakeholders ultra-wealthy. The rocket maker and AI company started trading just before noon on Friday at $150 per share, implying an eye-popping $2 trillion valuation. CEO Elon Musk became the world’s first trillionaire. Early investors like Peter Thiel’s Founders Fund and Antonio Gracias’ Valor Equity Partners’ stakes in the company are worth $67 billion and $71 billion, respectively. As of Tuesday afternoon, SpaceX’s market cap had skyrocketed to $2.8 trillion, surpassing Amazon as the world’s fifth largest company by market value.
AI DEAL OF THE WEEK
Jeff Bezos’ AI venture Project Prometheus raised $12 billion in funding at a $41 billion valuation. Bezos runs the company as co-CEO with Vik Bajaj, a cofounder of Alphabet’s life sciences research lab Verily and a Stanford University professor. The nascent startup is building AI tools to help engineers design and manufacture physical products faster. It plans to use the funding to buy up compute, according to CNBC.
DEEP DIVE
If you’re interested in renting an apartment in one of Equity Residential’s 300 properties, chances are you’ll soon be chatting with Ella to set up an apartment tour or answer questions about a lease.
But Ella isn’t human. It’s an AI assistant that answers the phones and responds to hundreds of emails around the clock. It’s still sending quick replies after all the humans have gone home, when most inquiries typically come in.
Ella is so helpful that some people don’t realize they’re talking to a bot.
“Customers were calling in asking for Ella and saying, ‘We just love her work ethic.’ They wanted to make sure she was going to get her commission,” says Kristin Hupfer, a senior vice president of customer experience at Equity Residential. The firm discloses that Ella is an AI chatbot the first time it communicates with a person through email, phone or text, Hupfer says.
Ella has been a gamechanger for the Chicago-based property manager, which owns buildings in New York, San Francisco and Seattle. Back in 2018, the firm’s staff struggled to keep up with the influx of hundreds of requests from prospective tenants each week. That in turn meant losing customers to rivals and keeping units idle. Then in 2019, it started working with New York-based EliseAI, the developer of Ella. Now the bot handles 1.5 million texts, emails and phone calls every year, allowing Equity Residential to save $20 million in payroll costs, Hupfer says (no layoffs, she clarifies, just not replacing staff who left). The real estate firm owns two buildings in Jersey City that don’t need a human staff member at all because they can be managed from a nearby community and Ella handles all the administrative tasks.
Today one in six apartments in the U.S. and 90 percent of the country’s largest property managers use EliseAI’s tools to respond to questions about a unit, renew leases and triage maintenance requests. It can even use smart locks to let renters into an apartment for a tour, or determine that a request to fix a broken A/C unit in the summer should be prioritized.
Read the full story on Forbes.
MODEL BEHAVIOR
Anthropic’s AI models are incredibly powerful. That is, unless you’re an AI researcher developing frontier large language models that could eventually compete against them. Anthropic disclosed last week that its Fable 5 and Mythos 5 models deliberately become less helpful if they detect another AI research lab using them. Rather than outright refusing to produce an answer, the models secretly modify user prompts to change its own responses.
US Senator Elizabeth Warren, a Massachusetts Democrat, says President Donald Trump "can't point to where we're better off" after the war in Iran. Speaking on "Balance of Power: Evening Edition," Senator Warren also discusses Defense Secretary Pete Hegseth's military budget request, her criticisms of Kevin Warsh as chair of the Federal Reserve, the state of housing and the SpaceX IPO.
Images of SpaceX rockets are displayed on screens in Times Square after the launch of the company’s initial public offering on June 12. (Angela Weiss / AFP via Getty Images)
Investors were eager to trade SpaceX options on their first day of trading Tuesday as the company’s shares gained almost 5% to $201.80, putting them 50% above the initial public offering price of $135 last week.
CNBC's Jim Cramer said Tuesday that investors flocking to SpaceX are betting on Elon Musk's ability to create transformative businesses — not the company's current earnings power.
"The stock is called SpaceX, but it might as well be called Elon Musk," the "Mad Money" host said.
SpaceX has quickly become one of the world's most valuable companies following its blockbuster IPO on Friday. Shares surged almost 5% Tuesday, pushing the rocket company's valuation above several technology heavyweights, including Amazon, and briefly surpassing Microsoft. The rally has intensified questions about whether SpaceX's roughly $2.5 trillion market value is justified.
Cramer argued, however, that conventional valuation methods miss what many investors are buying.
"There is no way this company, which could see losses for many years, deserves such a high valuation on its own. It only gets there because it's run by Musk," he said.
While Musk recently projected that SpaceX could generate $1 trillion in annual revenue by 2030, Cramer argued that the stock's appeal extends far beyond any single forecast. Instead, he thinks investors are assigning value to Musk's track record of building category-defining businesses and his ability to turn ambitious ideas into commercial opportunities.
"When you buy SpaceX here, you're really buying Elon Musk's brain," Cramer said. "I think the cult of Musk is for real."
To support that view, Cramer pointed to the breadth of SpaceX's businesses and growth initiatives, including its Starlink satellite internet network, reusable rocket operations, and long-term data center ambitions. Adding to that opportunity set, SpaceX announced Tuesday that it will acquire AI coding startup Cursor for $60 billion in stock, deepening its push into artificial intelligence and software development tools. While the company currently operates at a loss and many of these opportunities have yet to fully materialize, Cramer said they could ultimately become significant drivers of future growth.
Cramer suggested that some investors view SpaceX similarly to how previous generations viewed Berkshire Hathaway under Warren Buffett — a way to gain exposure to a business leader they believe can continue creating value for decades.
While skeptics continue to question the stock's valuation, Cramer noted that betting against the rally has been costly so far.
"While you're sitting here trying to justify SpaceX's valuation, the buyers are relentlessly pushing it up, and I bet they keep going," he said.
Space Exploration Technologies (SPCX +4.36%) stock saw another day of strong gains in Tuesday's trading, with the stock rising 4.8% in the daily session. Meanwhile, the S&P 500 fell 0.6%, and the Nasdaq Composite was off 1.2%. Notably, SpaceX stock had been up as much as 17.2% earlier in the day's trading.
Bullish momentum for SpaceX has continued following the company's initial public offering (IPO) on June 12, and news that the tech specialist has finalized a $60 billion deal to acquire artificial intelligence (AI) company Cursor has spurred positive valuation moves. In addition to general excitement surrounding the stock, recent comments from CEO Elon Musk and investment analysts have helped push the company's share price higher.
Image source: Getty Images.
SpaceX soars on AI news SpaceX stock has been red hot following its IPO last week, and the company's share price moved higher today following the announcement that the company had secured its $60 billion acquisition of Cursor. While SpaceX is best known for its rocket launching and Starlink mobile and internet communication services, the company has actually positioned AI compute services as central to its long-term growth strategy.
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What's next for SpaceX? Cursor provides coding and other AI technologies that look poised to help SpaceX increase its competitive positioning compared to Anthropic and OpenAI, and the closing of the deal seemingly represents another promising strategical step for Elon Musk's company. SpaceX has identified AI compute as its single biggest growth market, and integrating Cursor could help the company accelerate its expansion ambitions. SpaceX looks richly valued after its post-IPO rally, but it's possible that the tech company will wind up delivering sales and earnings growth that pave the way for continued valuation growth.
Keith Noonan has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
Key Takeaways SpaceX has been one of the most exciting IPOs ever, with its performance since its debut notably strong. Outside of SpaceX, Anthropic is another huge IPO that investors can't overlook. IPO activity post-pandemic has fluctuated significantly, primarily driven by economic uncertainty, rising interest rates, and inflation, all of which have impacted investor sentiment.
But the tide has shifted in a positive direction over the past few years, with 2026’s lineup, which includes SpaceX (SPCX - Free Report) and Anthropic, likely the most exciting year we’ve seen in decades concerning debuts.
Don’t Forget About AnthropicAnthropic has officially submitted its confidential draft S-1 prospectus with the SEC, setting up one of the largest tech IPOs in history. The company is expected to target a valuation clearing $1 trillion, building on the momentum of a massive Series H funding round that valued it at $965 billion.
The public listing is anticipated to potentially come as early as this fall, likely reflecting the biggest market story of the back half of 2026. The company's enterprise-focused AI ecosystem is its primary growth engine, with annualized revenue skyrocketing to a staggering $47 billion.
Notably, Anthropic is solidifying its position as a dominant force in corporate AI and critical infrastructure. Driven by the commercial success of enterprise tools like Claude Code, the company is scaling aggressively. To sustain this explosive compute demand, Anthropic has also secured a massive $15 billion-a-year data center lease with SpaceX alongside cloud partnerships with Amazon and Google.
SpaceX SoarsSpaceX (SPCX - Free Report) has officially debuted, with shares soaring post-IPO. The appetite for exposure among investors has been notably fierce, as displayed by the recent price action. The company's Starlink satellite internet segment is its primary profit engine, with over 10 million subscribers.
Notably, SpaceX is aggressively transforming into an AI and infrastructure giant. After absorbing Elon Musk’s AI startup xAI in a stock-based deal earlier this year, SpaceX spent a staggering $12.7 billion on AI infrastructure in 2025 alone. It is also partnering with Tesla on a chip-making project called ‘Terafab’ to build its own AI hardware.
By combining orbital dominance with cutting-edge artificial intelligence, SpaceX is positioning itself as more than just a space exploration company. It is positioning itself as the infrastructure layer for the future of computing, both on Earth and beyond.
Buying AI coding agent Cursor in a $60 billion deal and renting out data-center capacity gives the company a launchpad to land more enterprise customers.
SpaceX options on their first day of trading showed about a 15% chance for the stock to rise by 50% and a similar possibility that it loses half its value in the next three months, according to Susquehanna.
The stock saw the fifth-highest call volume of the day, Susquehanna strategist Chris Murphy wrote in a note Tuesday.
"The largest trades increasingly looked like hedges tied to future supply risk," Murphy wrote. "Upside calls reflect demand for another sharp move higher, while downside puts reflect concern around lock-up supply, valuation risk, and the possibility that the initial post-listing enthusiasm fades. The result is a difficult trading setup. The tails look too expensive to buy, but they also look too dangerous to sell."
SpaceX's stock rose for another day after its initial public offering on Friday — it's up about 50% from its IPO price — and its market cap has surpassed Amazon and is close to Microsoft's valuation. The options reflect a vigorous debate about whether the company can live up to the initial enthusiasm.
Current pricing implies about a 15% probability that SpaceX rises another 50% by September, while also implying roughly a 13% chance the stock falls 50%, Murphy wrote.
Investors are "trading the story, they're trading the action, they're trading the excitement, they're trading Elon Musk, but at some point the rubber meets the road in terms of the fundamentals having to match up with that excitement," Peter Boockvar, chief investment officer at One Point BFG Wealth Partners, said on CNBC's "Squawk Box Asia."
"If they can deliver, then the upside is certainly there, but the valuation is so enormous that the company is going to really have to show itself in growing into that valuation," he added. "I think that that's going to take at least a couple of years."
EchoStar SATS has a sizeable stake in the newly public SpaceX (SPCX) – one that’s being largely underappreciated by market participants, says New Street’s senior analyst David Barden.
In a recent note to clients, Barden raised his price target on the telecommunications firm to $165, indicating potential upside of an exciting 40% on its previous close.
The bullish call arrives at a time when EchoStar stock is struggling to reclaim its year-to-date high, currently down some 15% versus its peak in late May.
David Barden is positive on SATS for one simple reason: its stake in SpaceX alone makes it worth more than the market is giving it credit for in 2026.
Following the recent sale of wireless spectrum to AT&T and SpaceX, EchoStar owns roughly 262 million shares of billionaire Elon Musk’s artificial intelligence (AI) and space infrastructure giant.
Valuing SPCX shares at $161 each (the price at which they closed their debut session on Nasdaq), that stake alone is now worth over $42 billion.
But SATS shares at nearly $121 at writing are enormously “discounting” the SpaceX exposure – pricing the behemoth at a much lower $86 only, the New Street analyst told clients.
“We believe owning SpaceX stock via EchoStar at these levels is an attractive proposition.”
SATS’ fundamentals remain strong in 2026Beyond its SPCX holdings, EchoStar shares remain attractive, as the company maintains a core telecommunications infrastructure that generates steady cash flow.
It exited Q1 with over 6 million pay-TV subscribers, comprising 4.8 million on Dish TV and 1.79 million on Sling TV, as well as its Boost Mobile brand.
That said, Barden actually adjusted estimates for SATS’ legacy assets amid ongoing FCC spectrum auctions.
On Tuesday, he trimmed the AWS-3 spectrum valuation to $3 per MHz-POP from $3.62, reducing the expected value of EchoStar’s standalone business from $10 billion to about $8.3 billion.
From an investment perspective, what’s also worth mentioning is that SATS stock looks headed to now challenge its 20-day moving average (MA), with a clear break above $124 expected to boost bullish momentum in the near-term.
Moreover, much like New Street Research, the derivatives market is keeping bullish on EchoStar for the remainder of 2026, especially since it isn’t particularly expensive to own at about 2.2x sales.
According to Barchart, the put-to-call ratio on options contracts expiring mid-October sits at 0.24 currently, indicating a very strong bullish skew.
Crucially, while not as bullish as David Barden, other Wall Street analysts remain constructive on EchoStar for the next 12 months as well.
The consensus rating on SATS sits at “Moderate Buy” currently, with the mean price target of $143 signaling potential upside of nearly 20% from here.
Elon Musk's Space Exploration Technologies Corp. (NASDAQ:SPCX) has completed its initial public offering (IPO) and now all eyes are on the company's next move.
Musk's Mars AmbitionsOne of Musk's goals has been to reach Mars, colonize it and build a city on it. This goal was also part of a performance target for the world's richest man, as revealed by SpaceX's IPO paperwork.
Here's What Prediction Market Is SayingWhile Musk has made reaching Mars one of his biggest goals, prediction markets are not very confident about the trillionaire being able to achieve it.
Data from Kalshi, a federally authorized betting platform, shows that over $101,000 has been bet on the contract "Will Elon Musk visit Mars in his lifetime?"
According to bettors, the probability of Musk reaching Mars in his lifetime is just 13%.
Disclaimer: Kalshi and Benzinga have an existing data collaboration agreement.
What Will Musk Get?If Musk is able to help SpaceX establish a permanent human settlement on Mars with at least one million residents, along with the company hitting a $7.5 trillion valuation, he stands to receive 200 million super-voting restricted shares.
The goal is still a long time away, with Musk himself admitting that it was a long way off.
In February, Musk revealed that SpaceX's Mars timeline was slipping by "five to seven years," so the company could focus on lunar missions first.
Prediction Market Bets On Starlink IPOJust days after SpaceX wrapped up its IPO, the prediction market is now betting on Starlink's IPO. Bettors have placed a very low probability on Starlink going public before June 2027.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Photo courtesy: Shutterstock.com
Market News and Data brought to you by Benzinga APIs
Space Exploration Technologies (SPCX +4.36%) blasted off on its market debut on Friday, climbing 19%, then advanced by an additional 19% on its second trading day. All of this has brought SpaceX to a market cap of $2.5 trillion, placing it among the world's largest tech companies.
The SpaceX IPO was the biggest ever, as the company raised $75 billion. But the operation just became even bigger. The company's underwriters exercised an overallotment option early this week, allowing them to buy more than 83 million extra shares -- and this operation brought the total raised to $85.7 billion.
It's clear that many investors are excited about SpaceX, and this could be due to the fact that it operates in the three exciting growth areas of space, artificial intelligence (AI), and connectivity -- and it may also be linked to the idea that Elon Musk, known for huge ambitions, leads the company. Considering all of this, is SpaceX starting an Nvidia-style run? Let's find out.
Image source: Getty Images.
A 1,000% gain So, first, let's zoom in on the performance of Nvidia, the world's No. 1 AI chip designer. The company has seen earnings soar in recent years thanks to this dominance, and as a result, investors have piled into the stock. Nvidia shares have advanced 1,000% over five years. The company represented one of the best ways to bet on the AI boom, and this bet has proven itself to be a winning one.
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Unlike SpaceX, however, Nvidia's share price didn't skyrocket right out of the gate. The company went public back in 1999, but for many years, the stock traded for just a few dollars. It only took off within the past few years amid the excitement about AI -- and as Nvidia's revenue and profit surged.
SpaceX isn't a brand-new company. Like Nvidia, it's been around for decades developing its technology, but so far, its financial picture looks quite different from that of the AI chip giant. While Nvidia is generating more than $215 billion in annual revenue and $120 billion in net income, SpaceX's investments to support its technology developments -- particularly in the AI business -- pushed the company to a loss last year. In 2025, SpaceX's capital expenditures in the AI unit reached $12 billion, and though the company reported total revenue of $18 billion, it finished the year with a loss of $4.9 billion.
Starlink's key role SpaceX is earlier along the growth path than Nvidia, and it's still not clear if and when it may reach certain goals -- such as the development of data centers in space and the transport of people and materials to Mars. Right now, the company's connectivity business, Starlink, is driving revenue, as it brought in $11.4 billion last year on that total of $18 billion. Starlink offers satellite-based internet services and has seen its subscriptions explode higher from customers around the world. It's grown subscriber numbers from 2.3 million in 2023 to more than 10 million as of this March.
But SpaceX's goals are so far-reaching and depend so greatly on innovation and the development of new technology that it might take quite some time for the company to attain them -- and generate significant levels of revenue and profitability. So it's unlikely that the earnings picture, alone, will drive stock performance in the quarters to come.
That said, many investors are buying shares of SpaceX because they believe in the company's ability to reach certain milestones over time -- and they aim to get in early on the stock so that they might fully benefit down the road. It's a risk, and that makes SpaceX a buy for the aggressive investor -- but not for the cautious investor.
Now, let's consider our question: Based on all of this, could SpaceX be starting an Nvidia-style run? In the coming weeks and even months, it's possible. Investors are excited about SpaceX's programs and the possibilities that eventually could result in explosive growth. But if the upcoming earnings reports disappoint or if the company faces any technology setback, it could weigh heavily on stock performance. It's important to keep this in mind before rushing to buy this hot stock post-IPO.
SpaceX’s new options market exploded on Tuesday, giving traders a fresh and far riskier way to bet on the rocket company’s post-IPO surge.
The contracts began trading only days after SpaceX’s blockbuster Nasdaq debut, and demand was immediate.
Call options, which profit when a stock rises, dominated early activity. But the pricing also showed something more complicated than simple excitement.
Wall Street is now bracing for a huge move in either direction, with traders seeing room for another sharp rally while also preparing for a painful reversal.
SpaceX priced its IPO at $135 a share last week, already making it one of the most closely watched listings in market history.
Since then, the stock has climbed roughly 50%, lifting the company’s market value past Amazon and briefly above Microsoft during Tuesday’s trading.
That speed matters, as normally, a stock needs time to settle after going public.
In SpaceX’s case, investors have rushed in almost immediately, helped by the company’s rare mix of space launches, Starlink, defence contracts, artificial intelligence ambitions, and Elon Musk’s personal following.
The rally has also created pent-up demand among investors who either received small IPO allocations or missed out entirely. For them, options offer another route in.
An option is a contract that gives the buyer the right, but not the obligation, to buy or sell a stock at a fixed price before a set date.
A call is a bet on upside. A put is protection, or a bet, against downside. With SpaceX moving so fast, both sides have become expensive.
The scale of Tuesday’s options debut was striking. Around 1.8 million SpaceX options contracts changed hands, far above Meta’s previous first-day options record in 2012.
Calls outpaced puts, showing that bullish demand remained strong even after the stock’s dramatic run.
Susquehanna said SpaceX had the fifth-highest call volume of any stock that day.
Data from Trade Alert indicates that SpaceX options were the third-most heavily traded single-stock contracts overall, behind only Tesla and Nvidia.
“It’s unusual in history for companies to have options trade so quickly,” Mike Khouw, chief strategist at YieldMax ETFs, told Yahoo Finance.
“This is the third busiest single stock options contract trading today.”
The bigger story was not just volume. It was what the options prices implied about future movement.
Susquehanna estimated that the market was pricing roughly a 15% chance that SpaceX rises another 50% over the next three months.
It was also pricing a similar chance that the stock loses half its value over the same period.
That is what traders mean when they talk about “tails.” It refers to extreme outcomes at either end of the range.
In this case, the market is saying SpaceX could keep ripping higher, or crack sharply, and neither outcome looks remote.
Also read- SpaceX stock soars after IPO: Will it follow the Circle, Figma, Klarna path?
That two-sided risk is why derivatives strategists are sounding cautious, even as volume booms.
“The tails look too expensive to buy, but they also look too dangerous to sell,” Chris Murphy, a strategist at Susquehanna, said in comments cited by CNBC.
The line captures the problem facing traders. Buying options is costly because implied volatility is high. Implied volatility is the market’s estimate of how violently a stock may move.
But selling options can be even riskier, because a sharp move either way could leave sellers exposed to steep losses.
On the upside, call buyers are betting SpaceX can repeat the kind of momentum seen in Tesla during its most speculative phases.
On the downside, put demand reflects concern about valuation, lock-up expiry risk, and the possibility that early excitement fades once more shares become available.
Reuters reported that one large September trade appeared to hedge against the stock falling below $205, likely linked to future share supply after IPO lock-up restrictions ease.
Sceptics say the valuation already leaves little room for error.
“Investors rarely make money buying stocks valued at over 100x revenue,” short seller Jim Chanos told Yahoo Finance, while still acknowledging that Starlink is “a real business.”
SpaceX shares rose 4% in premarket trading on Wednesday, as the Elon Musk-led company extended a remarkable rally that's seen the stock surge around 62% since a blockbuster IPO on Friday.
Consistent gains for SpaceX this week pushed its market cap above Amazon on Tuesday, and it briefly surpassed Microsoft to become the fourth-largest company by valuation in the U.S.
SpaceX had a market cap of $2.65 trillion at close on Tuesday.
Investors are betting big on the promise of founder and CEO Musk's ability to drive long-term returns.
Musk posted on X on Sunday that the company "might be able to reach approximately" $1 trillion revenue in 2030.
SpaceX posted a $4.9 billion net loss in 2025, and it lost $4.28 billion in the first quarter of this year.
The lofty valuation for the company that has become dominant in satellites through its Starlink service and reusable rockets has raised questions about the its ambitious growth plans.
Investors are "trading the story, they're trading the action, they're trading the excitement, they're trading Elon Musk, but at some point the rubber meets the road in terms of the fundamentals having to match up with that excitement," Peter Boockvar, chief investment officer at One Point BFG Wealth Partners, said on CNBC's "Squawk Box Asia."
"If they can deliver, then the upside is certainly there, but the valuation is so enormous that the company is going to really have to show itself in growing into that valuation," he added. "I think that that's going to take at least a couple of years."
SpaceX (SPCX +19.60%) stock makes history as the biggest IPO ever. The company's valuation is out of this world.
*Stock prices used were the afternoon prices of June 12, 2026. The video was published on June 14, 2026.
Parkev Tatevosian, CFA has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Parkev Tatevosian is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through his link, he will earn some extra money that supports his channel. His opinions remain his own and are unaffected by The Motley Fool.
Australian mining billionaire Gina Rinehart has built major stakes in rare-earth and critical minerals companies alongside her iron-ore business. Philip Gostelow/Bloomberg/Getty Images Australian mining billionaire Gina Rinehart has made a major bet on Elon Musk's SpaceX that could lead to more than just a financial return.
Rinehart — Australia's richest person with a fortune estimated at $38.4 billion by the Bloomberg Billionaires Index — invested through Hancock Prospecting, her privately held mining and agriculture company.
Hancock Prospecting said Monday that it was allocated shares in SpaceX's initial public offering. The company did not disclose the size of its "significant investment," though The Wall Street Journal reported that the stake was worth more than $1 billion.
"In the future, we also see the possibility of mutually beneficial arrangements between SpaceX and Hancock Prospecting's significant critical minerals investments, as demand grows for the materials and infrastructure needed to support advanced technology," said Garry Korte, the CEO of Hancock Prospecting, in a statement. He described the SpaceX share allocation as "generous."
The comments point to potential opportunities between SpaceX and Rinehart's growing portfolio of critical minerals investments.
SpaceX has identified asteroid mining as a potential future opportunity, while NASA is supporting efforts to develop a commercial economy on and around the moon that could eventually include resource extraction.
Those ambitions could increase demand for the kinds of critical minerals that Rinehart has spent years investing in.
While Rinehart built her fortune through iron ore — the key ingredient in steelmaking — she has spent years investing in rare earths and other critical minerals.
Hancock holds major stakes in companies including Australia's Lynas Rare Earths and US-based MP Materials, two of the most prominent rare-earth producers outside China.
Rinehart, the executive chairman of Hancock Prospecting, described the SpaceX investment as significant.
"We are pleased to have received an allocation in what has been an extremely popular and oversubscribed IPO," she said in the statement.
"We see SpaceX as a rare business: led by a truly exceptional person, technically exceptional, and operating in sectors that are crucial, and with long-term potential," she added.
The investment gives Rinehart exposure to one of the world's most closely watched technology companies.
SpaceX began trading publicly on Friday after raising $75 billion in what was billed as the largest IPO on record. Shares surged nearly 20% in their first day of trading.
On Monday, SpaceX announced that the underwriters had exercised a greenshoe option, increasing the amount raised to more than $85 billion.
SpaceX closed nearly 20% higher on Monday, lifting its market capitalization to over $2 trillion.
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Huileng Tan is a senior reporter based in Singapore, covering markets, the economy, and commodities — and how they intersect with politics and society.She previously reported for CNBC, Dow Jones, ICIS, and The Wall Street Journal.Reach her at [email protected]. [en|zh|fr]
Shares of SpaceX (SPCX +19.79%) continued their ascent on Monday as the massively popular IPO stock completed its second day of trading as a public company.
Image source: Getty Images.
Green shoes SpaceX's initial public offering (IPO) was by all accounts a blockbuster. Elon Musk's space exploration juggernaut raised $75 billion dollars by selling over 555 million shares of its stock to investors at an IPO price of $135 per share.
Apparently, that wasn't quite enough. The investment bankers who helped underwrite SpaceX's IPO had the option to offer an additional 83.3 million shares as part of their so-called "Greenshoe" overallotment. By exercising this option, these bankers helped SpaceX raise a total of $85.7 billion, rather than the $75 billion originally reported.
More money, more growth? SpaceX's expansion plans are bold and multifaceted.
Reusable rocket ships? Check. Massive satellite communication network? Let's do it. AI data centers? Of course. A chipmaking factory? We're going to need one of those.
Better yet, let's put some of those data centers in space. Now we're talking. And let's colonize Mars while we're at it. Cool!
As you can see, there are audacious goal setters, and then there's Elon Musk. Investors love him for it.
For his part, Musk believes SpaceX's revenue could grow to a staggering $1 trillion by 2030. If he's correct, SpaceX's current $2.5 trillion market capitalization suddenly doesn't seem so irrational.
But there's a lot that needs to go right for Musk's growth forecast to come to fruition -- and it's sure to be a wild ride along the way.
Joe Tenebruso has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
SpaceX (SPCX +19.79%) wowed the market when it raised $75 billion in a record initial public offering last week. The stock climbed 19% during its first trading session, bringing the company to a market value of more than $2.1 trillion. That offers it a spot among the world's biggest tech companies, from the $1.5-trillion Tesla -- which, like SpaceX, is also an Elon Musk-led company -- to the $4.9 trillion Nvidia.
Investors rushed to get in on the company for exposure to its three growth businesses of artificial intelligence (AI), rocket launches, and satellite-based connectivity. The company has huge goals, from placing data centers in space to colonizing Mars. In a livestream on IPO day, Musk said the company was entering a major growth phase -- this suggests the coming years could be an important time for SpaceX and its shareholders. Some investors might also be eager to get involved in a company led by Musk, given his long track record of innovation and perseverance at the helm of Tesla.
Of course, right now, investors are wondering what may happen next in the near term following SpaceX's exciting market debut. Well, exactly 15 days post IPO, something big may happen. Let's check out what it means for you.
Image source: Getty Images.
An exciting event for retail investors So, first, let's consider the SpaceX IPO story so far. The company announced the operation earlier this spring and put an emphasis on making this a significant event for retail investors. While 5% to 10% of IPO shares generally are offered to these small non-professional investors, SpaceX aimed for as high as 30%. A source told CNBC that this figure settled at about 20%, which is still a considerable portion of shares.
Investors clearly were interested in the operation, as a Bloomberg report said it was oversubscribed by four times. This means there was significantly more demand than supply, suggesting that investors who didn't get in on the IPO may aim to buy shares in the first days of trading. All of this could push SpaceX stock higher in the coming week.
Now, let's consider the event that will happen 15 trading days after SpaceX's market debut: SpaceX will likely join the Nasdaq-100, thanks to the index's new fast-track process. Until just recently, an IPO company would have to wait three to 14 months for consideration. As part of the new procedure, if a company's market value places it within the 40 biggest companies in the index at around $121 billion or more, it may join. Valued in the trillions today, it's very likely that SpaceX will meet the criteria when the index evaluates the company. That happens on its seventh day of trading, paving the way for admission as of early July.
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Funds tracking the Nasdaq-100 Now, let's return to our question: What does this mean for you as a shareholder or potential shareholder? The addition of SpaceX to the Nasdaq-100 is positive in two ways. First, it means that managers of funds tracking the index must add the shares so that their funds continue to correctly represent the index's performance. This movement is likely to boost the shares as these investors place buy orders. So, this is good news for you if you already hold SpaceX stock.
Second, this means that in a few weeks, many more funds will be holders of SpaceX shares, offering investors another path to SpaceX exposure: You could buy shares of a particular exchange-traded fund that holds the stock. Many already exist -- longtime SpaceX supporter Cathie Wood of Ark Invest on IPO day added the stock to several of her funds. But a possible SpaceX addition to the Nasdaq-100 should further increase the fund selection for investors.
So, something big is likely to happen on SpaceX's 15th trading day, and it could offer current shareholders additional gains -- and offer newcomers more ways to get in on this technology and industrial giant.
SpaceX (SPCX +19.79%) completed the largest initial public offering (IPO) in history on June 12, initially raising about $75 billion, with proceeds later reaching $85.7 billion after underwriters exercised the greenshoe option. Shares priced at $135, opened higher, and closed their first day near $161 -- a gain of about 19%. And they've kept climbing. As of this writing, the stock trades near $188, up about 17% Monday.
That run has handed Elon Musk's rocket and satellite-internet company a market value of about $2.5 trillion -- enough to rank it among the 10 most valuable companies in the world, ahead of Tesla and behind only a handful of larger technology companies. For a business that lost money last year, that is an extraordinary price.
Here's a closer look at the case for buying SpaceX after its record debut, as well as the reasons for caution.
Image source: The Motley Fool.
A powerful catalyst SpaceX is still best known for landing rockets. But that stopped being the financial story some time ago. The company reported revenue of about $18.7 billion in 2025, up 33% from a year earlier, and the bulk of it came from Starlink, its satellite-internet service.
Starlink's 2025 revenue rose about 50% to $11.4 billion -- more than 60% of the company's total. Even more, it's profitable, generating about $4.4 billion in income from operations for the year.
And Starlink ended 2025 with about 9 million subscribers, about double the year before, and surpassed 10 million by the end of March.
The launch business is smaller and growing more slowly, with revenue rising about 8% in 2025, to about $4 billion. SpaceX flew well over 100 Falcon 9 missions during the year, though the bulk carried its own Starlink satellites rather than paying customers.
Then there's the company's more aspirational projects. In February, SpaceX absorbed Musk's artificial intelligence (AI) company, xAI, folding its Grok chatbot and a fast-growing compute business into the company. Further, SpaceX has floated an even bigger idea: putting AI data centers in orbit.
"We expect to begin deploying our orbital AI compute satellites as early as 2028," SpaceX said in its IPO prospectus.
Ultimately, though, Starlink will be the near-term driver for the business. Sure, these other ventures within SpaceX could eventually provide substantial operating cash flow for the rest of the business. But growth initiatives like these are unprecedented, and guessing their future impact on the overall business is difficult, if not impossible.
A staggering valuation Further, justifying the stock's valuation is not easy.
SpaceX lost about $4.9 billion in 2025. The drag was the AI segment, which posted an operating loss of more than $6 billion as it spent heavily on computing power. The space and connectivity segments, by contrast, were both profitable on a segment-adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) basis.
There are some key risks to consider as well.
First of all, SpaceX listed with a dual-class structure that gives Musk about 82% of the voting power while he holds something closer to 40% of the equity. This means that public investors get economic exposure to the business, but little say in how it's run.
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And then there's the valuation.
SpaceX doesn't yet turn a profit, so there's no price-to-earnings ratio to anchor on. Measured against sales, the growth stock trades at a price-to-sales ratio far north of 100 -- a multiple that assumes Starlink keeps compounding and that the money-losing AI bet eventually pays off.
So, where could the stock go from here?
Over a multiyear horizon, I think the business has a real shot at growing into something far larger. Starlink is scaling quickly, already generating operating income, and the launch and orbital-compute opportunities are enormous. But at this price, the stock arguably already reflects years of flawless execution.
For now, however, I'd rather watch than chase the debut. After all, even a remarkable business can make for a poor investment if the entry price is high enough.
The SpaceX logo and a rising stock graph are seen in this illustration created on June 5, 2026. REUTERS/Dado Ruvic/Illustration/File Photo Purchase Licensing Rights, opens new tab
June 15 (Reuters) - SpaceX (SPCX.O), opens new tab will release quarterly and annual financial results, besides other material news, only through its website and social media account on X and not through wire distribution services, it said in a filing on Monday.
The move marks a departure from standard corporate communication practices, which typically involve newswire services like Business Wire or PR Newswire to reach a broad audience of investors and media outlets.
The Reuters Inside Track newsletter is your essential guide during the World Cup. Sign up here.
SpaceX said it "encourages members of the investment community, the media, and others to follow" its investor relations page on its website and its X account to review the information disclosed through those channels.
Shares of the company closed around 19% higher on Monday. They were up about 2% in extended trading.
Earlier in the day, the company said its underwriters had exercised the "greenshoe" option to purchase additional shares, increasing the total proceeds from its initial public offering to $85.7 billion.
Elon Musk's rocket, AI and internet conglomerate had raised a record $75 billion through the sale of 555.56 million shares at $135 apiece, becoming the largest IPO in history even before the greenshoe option was exercised.
Reporting by Sriparna Roy and Jaspreet Singh in Bengaluru; Editing by Anil D'Silva and Leroy Leo
Our Standards: The Thomson Reuters Trust Principles., opens new tab
ToplineElon Musk’s fortune increased nearly $165 billion Monday, reaching a record high $1.3 trillion after SpaceX surged 20% in its first full trading day after the company’s historic IPO.
The world’s richest person became the first trillionaire after SpaceX’s trading debut.
Getty Images
Key FactsShares of SpaceX surged more than 19.5% on Monday, closing at more than $192 and extending Friday’s opening rally of 19%, while Tesla shares also rose slightly (1.2%).
A further boost in SpaceX shares contributed to a $164.8 billion boost to Musk’s net worth, valued at a record $1.3 trillion, putting him roughly $1 trillion clear of Google cofounder Larry Page ($301.4 billion), who Forbes ranks as the world’s second-wealthiest person.
Musk owns 4.8 billion SpaceX shares and an additional 350 million stock options with an exercise price of $8.40 per share, bringing his stake to about 38%.
big number$85.7 billion. That’s how much SpaceX raised in its IPO, the company said Monday. That came after the brokers behind the offering purchased an additional 83.3 million shares to accommodate stronger investor demand following SpaceX's initial $75 billion raise. The initial public offering reportedly brought in more than $350 billion, including roughly $100 billion from retail traders and the remaining $250 billion from institutional investors.
key backgroundSpaceX’s trading debut last week swelled Musk’s stake in the company to about $821 billion, making him the world’s first trillionaire, with a net worth of $1.1 trillion. His fortune has soared ahead of the trillion-dollar milestone and is the latest of many over the last year, after Musk in October became the first person to be valued at $500 billion in October, then hit $600 billion in December and $700 billion just four days later.
further readingForbesSpaceX Says Historic IPO Raised More Than $85 BillionBy Ty Roush
ForbesSpaceX Opens At $150—Surging 20% After Largest IPO Ever (Live Updates)By Ty Roush
Marley Kayden discusses SpaceX (SPCX) rallying in its first full day of trading, with a record-setting IPO. Sam Vadas highlights continued pressure on homebuilder stocks as investors weigh affordability concerns and signs of slowing housing rates.
