SpaceX Soars 28% on First Day of Trading
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 hour ago
0mins
Source: Fool
- Strong IPO Performance: SpaceX's stock opened at $150 and surged 28% by the close of its first trading day, achieving a market capitalization exceeding $2 trillion, which reflects strong market confidence in its growth prospects.
- Market Share Leadership: With an 80% share in the commercial space market, SpaceX's reusable rocket technology has reduced space travel costs by over 90%, establishing a solid foundation for future revenue growth.
- Starlink Service Expansion: As of March 31, Starlink boasts over 10.3 million paying subscribers, doubling from last year, and the upcoming V3 satellites are expected to provide tenfold bandwidth, further boosting its connectivity business, which accounted for over 60% of total revenue last year.
- AI Business Potential: By acquiring Elon Musk's xAI, SpaceX has entered the AI market, with Anthropic projected to spend $1.25 billion monthly on data center capacity, and Alphabet potentially spending up to $920 million monthly starting in October, highlighting the lucrative potential of its AI operations.
Trade with 70% Backtested Accuracy
Stop guessing "Should I Buy SPCX?" and start using high-conviction signals backed by rigorous historical data.
Sign up today to access powerful investing tools and make smarter, data-driven decisions.
Analyst Views on SPCX
Wall Street analysts forecast SPCX stock price to rise
0 Analyst Rating
0 Buy
0 Hold
0 Sell
Current: 201.800
Low
Averages
High
Current: 201.800
Low
Averages
High
About SPCX
Space Exploration Technologies Corp. designs, manufactures, launches, and operates products and services built on technologies, including rockets and spacecraft. The Company's segments include Space, Connectivity, and artificial intelligence (AI). Its Space segment designs, manufactures, and launches reusable rockets to provide access to space. Its Connectivity segment operates broadband data and communications network powered by approximately 9,600 Starlink broadband and mobile satellites in Low-Earth orbit, delivering connectivity to consumer, enterprises, and government customers over 164 countries, territories, and other markets. In its AI segment, it operates a vertically integrated AI platform spanning its truth-seeking frontier model Grok, AI solutions for consumer and enterprise customers, X-its real-time information, entertainment, and free speech platform and AI computational infrastructure.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Musk Predicts SpaceX Revenue Over $1 Trillion by 2030
- Revenue Surge Prediction: Musk stated on social media that SpaceX could reach approximately $1 trillion in revenue by 2030, a significant leap from last year's $18.7 billion, which would greatly enhance the company's valuation if realized.
- Market Potential Analysis: While the space launch market is valued at $370 billion annually, the mobile connectivity market for Starlink is expected to become a $1.6 trillion business, indicating that SpaceX must capture a substantial share of the AI industry to achieve trillion-dollar revenue.
- Intense Competitive Landscape: The AI market is projected to reach $26.5 trillion by 2030, with established players like Alphabet and Anthropic posing significant competition, which may limit SpaceX's ability to secure a large market share.
- Divergent Analyst Views: Despite the bullish market sentiment, analysts have differing revenue expectations for SpaceX, with Goldman Sachs forecasting $470 billion for 2030 and Morgan Stanley at only $330 billion, reflecting a cautious outlook on the company's growth prospects.
See More
SpaceX Achieves $2.5 Trillion Market Value Post-IPO
- Strong IPO Performance: SpaceX's stock surged 28% in the two days following its IPO, achieving a market value of $2.5 trillion, reflecting strong investor confidence in its future potential.
- Competing with the Magnificent Seven: SpaceX's market cap positions it alongside the Magnificent Seven, all exceeding $1 trillion, indicating its rapidly growing influence in the tech sector and potential to become a market leader.
- AI Investment and Challenges: Despite investing $12 billion in AI, SpaceX's AI business has yet to generate significant revenue, highlighting challenges in profitability and the need for ongoing capital to support long-term growth.
- Profitability Needs Improvement: With only $18 billion in revenue last year compared to Alphabet's $400 billion, SpaceX shows it still has work to do in terms of profitability and revenue growth to meet the standards of the Magnificent Seven.
See More
Former Meta AI Scientist Calls xAI a Failure
- Challenges for xAI: Yann LeCun, former Meta AI scientist, claims that Elon Musk's xAI is a 'failure' due to the departure of its founding team, which severely hampers Musk's ability to attract top AI talent, potentially impacting the company's long-term viability.
- Significant Financial Losses: In the three months ending March 31, SpaceX's AI segment, including xAI, reported an operational loss of $2.5 billion, indicating serious profitability issues that could undermine investor confidence in the venture.
- Reliance on Infrastructure Leasing: LeCun highlighted that xAI's Colossus 1 and Colossus 2 data centers are rented out to other companies to offset operational costs, which may limit xAI's independent growth potential and affect its competitive stance in the market.
- Bubble Risk in the Industry: With increasing scrutiny on enterprise AI spending, LeCun warns that if companies like OpenAI and Anthropic cannot raise prices or cut costs, it could lead to a significant bubble explosion, jeopardizing the stability of the entire AI market.
See More
SpaceX Achieves $2.6 Trillion Valuation Post-IPO
- Valuation Competition: SpaceX's valuation has reached $2.6 trillion, putting it in a competitive race with Amazon for the title of the world's fifth-largest company, while being over $1 trillion ahead of Tesla, indicating strong market performance and investor confidence.
- Market Outlook: To surpass Apple and Alphabet, SpaceX would need its stock price to rally approximately 70% to $340, with current options market data suggesting a 50% chance of achieving this by July 2028.
- Options Market Analysis: According to options chain data, the June 2028 calls indicate a 46% chance of touching $340, while the December 2028 calls show slightly over a 41% chance, reflecting market expectations for its future performance.
- Investor Confidence: Despite the significant gap to the top two competitors, SpaceX's growth potential and market recognition in the coming years make it a focal point for investors, particularly against the backdrop of rapid advancements in tech stocks.
See More
Intel Partners with Apple for Chip Manufacturing in the U.S.
- Intel Stock Surge: Intel's shares soared nearly 9% after President Trump announced a deal with Apple for chip design and manufacturing in the U.S., which is expected to enhance the competitiveness of the American semiconductor industry.
- Chip Sector Rally: Following Intel's announcement, chipmakers experienced a broad rally, with Marvell Technology rising nearly 7% and both Lam Research and Applied Materials increasing about 5%, indicating optimistic market sentiment towards the semiconductor sector.
- Smith & Wesson Strong Performance: Gunmaker Smith & Wesson reported earnings and revenue beats, leading to a 14% stock increase, with handgun sales up 23% year-over-year, representing 80% of total units shipped in the quarter, reflecting robust market demand.
- Accenture Acquisition Impact: Accenture's stock fell 13% after announcing its acquisition of asset intelligence company runZero and cybersecurity firm Dragos, with the combined deal valued at approximately $4.175 billion, raising concerns about the company's acquisition strategy.
See More
LeCun Declares Musk's xAI a 'Failure', Predicts Industry Bubble
- xAI Competitiveness Questioned: Yann LeCun, founder of AMI Labs, labeled Musk's xAI a 'failure', predicting it won't compete with OpenAI and Anthropic, which could undermine investor confidence and lead to valuation declines in major AI firms.
- Infrastructure Leasing Reality: LeCun noted that xAI possesses 'huge infrastructure' that it rents to other companies to offset operational costs, indicating challenges in its profitability model that may affect long-term sustainability.
- Industry Bubble Risk: LeCun warned that AI labs must raise prices or cut costs to avoid a 'big bubble explosion', reflecting the current inadequacy of profitability in the AI sector, which could lead to market turmoil.
- Prospects of World Models: LeCun emphasized that 'world models' are key to AI development, arguing that current large language models (LLMs) suffer from a mismatch between cost and performance, suggesting that future AI systems need to be based on deeper understanding to execute more complex tasks.
See More
Musk Predicts SpaceX Revenue Over $1 Trillion by 2030
- Revenue Surge Prediction: Musk stated on social media that SpaceX could reach approximately $1 trillion in revenue by 2030, a significant leap from last year's $18.7 billion, which would greatly enhance the company's valuation if realized.
- Market Potential Analysis: While the space launch market is valued at $370 billion annually, the mobile connectivity market for Starlink is expected to become a $1.6 trillion business, indicating that SpaceX must capture a substantial share of the AI industry to achieve trillion-dollar revenue.
- Intense Competitive Landscape: The AI market is projected to reach $26.5 trillion by 2030, with established players like Alphabet and Anthropic posing significant competition, which may limit SpaceX's ability to secure a large market share.
- Divergent Analyst Views: Despite the bullish market sentiment, analysts have differing revenue expectations for SpaceX, with Goldman Sachs forecasting $470 billion for 2030 and Morgan Stanley at only $330 billion, reflecting a cautious outlook on the company's growth prospects.
See More
SpaceX Achieves $2.5 Trillion Market Value Post-IPO
- Strong IPO Performance: SpaceX's stock surged 28% in the two days following its IPO, achieving a market value of $2.5 trillion, reflecting strong investor confidence in its future potential.
- Competing with the Magnificent Seven: SpaceX's market cap positions it alongside the Magnificent Seven, all exceeding $1 trillion, indicating its rapidly growing influence in the tech sector and potential to become a market leader.
- AI Investment and Challenges: Despite investing $12 billion in AI, SpaceX's AI business has yet to generate significant revenue, highlighting challenges in profitability and the need for ongoing capital to support long-term growth.
- Profitability Needs Improvement: With only $18 billion in revenue last year compared to Alphabet's $400 billion, SpaceX shows it still has work to do in terms of profitability and revenue growth to meet the standards of the Magnificent Seven.
See More
Former Meta AI Scientist Calls xAI a Failure
- Challenges for xAI: Yann LeCun, former Meta AI scientist, claims that Elon Musk's xAI is a 'failure' due to the departure of its founding team, which severely hampers Musk's ability to attract top AI talent, potentially impacting the company's long-term viability.
- Significant Financial Losses: In the three months ending March 31, SpaceX's AI segment, including xAI, reported an operational loss of $2.5 billion, indicating serious profitability issues that could undermine investor confidence in the venture.
- Reliance on Infrastructure Leasing: LeCun highlighted that xAI's Colossus 1 and Colossus 2 data centers are rented out to other companies to offset operational costs, which may limit xAI's independent growth potential and affect its competitive stance in the market.
- Bubble Risk in the Industry: With increasing scrutiny on enterprise AI spending, LeCun warns that if companies like OpenAI and Anthropic cannot raise prices or cut costs, it could lead to a significant bubble explosion, jeopardizing the stability of the entire AI market.
See More
SpaceX Achieves $2.6 Trillion Valuation Post-IPO
- Valuation Competition: SpaceX's valuation has reached $2.6 trillion, putting it in a competitive race with Amazon for the title of the world's fifth-largest company, while being over $1 trillion ahead of Tesla, indicating strong market performance and investor confidence.
- Market Outlook: To surpass Apple and Alphabet, SpaceX would need its stock price to rally approximately 70% to $340, with current options market data suggesting a 50% chance of achieving this by July 2028.
- Options Market Analysis: According to options chain data, the June 2028 calls indicate a 46% chance of touching $340, while the December 2028 calls show slightly over a 41% chance, reflecting market expectations for its future performance.
- Investor Confidence: Despite the significant gap to the top two competitors, SpaceX's growth potential and market recognition in the coming years make it a focal point for investors, particularly against the backdrop of rapid advancements in tech stocks.
See More
Intel Partners with Apple for Chip Manufacturing in the U.S.
- Intel Stock Surge: Intel's shares soared nearly 9% after President Trump announced a deal with Apple for chip design and manufacturing in the U.S., which is expected to enhance the competitiveness of the American semiconductor industry.
- Chip Sector Rally: Following Intel's announcement, chipmakers experienced a broad rally, with Marvell Technology rising nearly 7% and both Lam Research and Applied Materials increasing about 5%, indicating optimistic market sentiment towards the semiconductor sector.
- Smith & Wesson Strong Performance: Gunmaker Smith & Wesson reported earnings and revenue beats, leading to a 14% stock increase, with handgun sales up 23% year-over-year, representing 80% of total units shipped in the quarter, reflecting robust market demand.
- Accenture Acquisition Impact: Accenture's stock fell 13% after announcing its acquisition of asset intelligence company runZero and cybersecurity firm Dragos, with the combined deal valued at approximately $4.175 billion, raising concerns about the company's acquisition strategy.
See More
LeCun Declares Musk's xAI a 'Failure', Predicts Industry Bubble
- xAI Competitiveness Questioned: Yann LeCun, founder of AMI Labs, labeled Musk's xAI a 'failure', predicting it won't compete with OpenAI and Anthropic, which could undermine investor confidence and lead to valuation declines in major AI firms.
- Infrastructure Leasing Reality: LeCun noted that xAI possesses 'huge infrastructure' that it rents to other companies to offset operational costs, indicating challenges in its profitability model that may affect long-term sustainability.
- Industry Bubble Risk: LeCun warned that AI labs must raise prices or cut costs to avoid a 'big bubble explosion', reflecting the current inadequacy of profitability in the AI sector, which could lead to market turmoil.
- Prospects of World Models: LeCun emphasized that 'world models' are key to AI development, arguing that current large language models (LLMs) suffer from a mismatch between cost and performance, suggesting that future AI systems need to be based on deeper understanding to execute more complex tasks.
See More
