Key Takeaways
- Kevin O’Leary declined his SpaceX IPO shares but now monitors the $100-$110 level as a potential buying opportunity after volatility cools
- Second-quarter revenue reached $7.81 billion, representing a 91.9% year-over-year increase and surpassing the $6.9 billion consensus
- The company’s EPS loss of $0.09 significantly outperformed expectations of a $0.26 loss; Starlink users grew to 12 million
- Shares have declined over 25% from their June 12 market debut, with lockup releases intensifying downward pressure
- Argus initiated coverage with a Buy rating and $160 target; consensus analyst price objective stands at $227.31
Shares of SpaceX (SPCX) began Friday’s session at $114.92, continuing to trade significantly beneath peak levels established following the company’s public debut. The equity has surrendered more than 25% of its value since launching on June 12, touching an intraday bottom of $104.83, despite management reporting robust quarterly financial results.
Space Exploration Technologies Corp., SPCX
Second-quarter sales totaled $7.81 billion, representing a 91.9% climb from the same period last year and exceeding analyst estimates of $6.9 billion. Earnings per share registered a loss of only $0.09, substantially better than the projected $0.26 deficit.
The Starlink customer base expanded to 12 million users, doubling its prior level. Artificial intelligence revenue jumped approximately 250%. The company narrowed its operating deficit to $143 million compared to $970 million in the year-ago quarter.
Quarterly capital spending exceeded $18 billion, with $15.83 billion allocated toward AI-related infrastructure projects. This aggressive investment pace represents the primary concern among skeptical investors, given the company continues reporting GAAP losses.
CEO Elon Musk indicated SpaceX projects achieving a $100 billion annual revenue run rate by year-end. CFO Bret Johnsen disclosed that $6.7 billion in cloud service agreements will begin generating revenue starting in October.
Wall Street Maintains Optimistic Outlook Through Selloff
Research firm Argus elevated SPCX from Hold to Buy on Friday, establishing a $160 price objective. This forecast represents approximately 39% appreciation potential from current trading levels.
The collective analyst sentiment remains positive. Among 39 firms covering the stock, three assign Strong Buy ratings, 26 recommend Buy, eight suggest Hold, and two advise Sell. The consensus price target reaches $227.31.
Deutsche Bank maintains the most aggressive forecast at $255. Citigroup projects shares reaching $200. Royal Bank of Canada reaffirmed its Outperform stance with a $225 objective. Moffett Nathanson takes a more conservative approach, rating the shares Neutral with a $131 target.
RBC analyst Ken Herbert characterized the second-quarter performance as “positive.” Zacks strategist Brian Mulberry highlighted AI revenue generation as a “tremendous upside surprise.”
Shark Tank Investor Monitors for Entry Opportunity
Celebrity investor Kevin O’Leary revealed he declined his IPO share allocation due to concerns about trading liquidity. He now tracks the $100 to $110 price zone as an attractive accumulation level.
“As the stock settles over the next 30 to 60 days, I’ll be watching closely, and I may start building a position,” O’Leary posted on X.
O’Leary maintains that SpaceX requires a longer-term valuation framework beyond conventional quarterly metrics. His investment rationale focuses on Musk’s ability to integrate SpaceX with Tesla, robotics platforms, AI technologies, and self-driving vehicles into a unified technology ecosystem.
Share Lockup Releases Continue Weighing on Price
Thursday marked the first lockup expiration, releasing 911.5 million additional shares for potential sale and effectively doubling the publicly available float. Retail investor demand absorbed a portion of this new supply, though additional phased releases remain scheduled through year-end.
SpaceX and Tesla jointly announced an initial $16.8 billion commitment to the Terafab semiconductor manufacturing facility in Texas. Management also revealed blueprints for space-based AI data centers alongside expanded mobile network infrastructure.
SPCX currently trades between a 52-week high of $225.64 and a low of $104.83. The company’s debt-to-equity ratio registers at 0.83.
Get 3 Free Stock Ebooks
Discover top-performing stocks in AI, Crypto, and Technology with expert analysis.
- Top 10 AI Stocks - Leading AI companies
- Top 10 Crypto Stocks - Blockchain leaders
- Top 10 Tech Stocks - Tech giants
