SpaceX Targets IPO Valuation of $1.8 Trillion, Below Expectations
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 7 hours ago
0mins
Source: stocktwits
- IPO Valuation Adjustment: SpaceX is targeting an IPO valuation of at least $1.8 trillion, down from earlier expectations exceeding $2 trillion, which may impact investor confidence and lead to stock price volatility.
- Funding Goals: Despite the valuation cut, SpaceX aims to raise up to $75 billion, potentially making it the largest IPO in Wall Street history, indicating strong market recognition of its long-term potential.
- Market Reaction: Following the SpaceX IPO news, stocks of Rocket Lab (RKLB), Redwire (RDW), and Intuitive Machines (LUNR) generally fell in trading, with AST SpaceMobile (ASTS) dropping 11%, reflecting a cautious investor sentiment towards future market conditions.
- Industry Outlook: In its IPO filing, SpaceX outlined a target market of $28.5 trillion, including a $1.6 trillion opportunity from Starlink broadband, indicating significant growth potential for the company in the future space economy.
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Analyst Views on ASTS
Wall Street analysts forecast ASTS stock price to fall
8 Analyst Rating
3 Buy
4 Hold
1 Sell
Hold
Current: 133.090
Low
43.00
Averages
91.68
High
137.00
Current: 133.090
Low
43.00
Averages
91.68
High
137.00
About ASTS
AST SpaceMobile, Inc. is engaged in building a global cellular broadband network in space to operate directly with standard, unmodified mobile devices based on its intellectual property (IP) and patent portfolio and designed for both commercial and government applications. The Company is engaged in designing and developing the constellation of BlueBird (BB) satellites and has planned a space-based Cellular Broadband network distributed through a constellation of low Earth orbit (LEO) satellites. Its SpaceMobile Service is being designed to provide high-speed cellular broadband services to end-users who are out of terrestrial cellular coverage using existing mobile devices. The Company intends to continue testing capabilities of the BW3 test satellite, including further testing with cellular service providers and the government. The Company has operations in India, Scotland, Spain, and Israel.
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.
AST SpaceMobile Faces Crisis with Launch Partner Blue Origin
- Launch Partner Crisis: AST SpaceMobile's launch partner Blue Origin experienced an explosion of its New Glenn rocket at Cape Canaveral, severely damaging the launch facility and causing AST's stock to drop 17.3%, indicating market concerns over its future launch plans.
- Historical Mishap: This marks the second incident related to Blue Origin for AST, as a previous rocket anomaly prevented a satellite from reaching orbit, raising doubts about AST's confidence in Blue Origin and potentially affecting future collaboration decisions.
- Diversified Launch Strategy: Despite the crisis with Blue Origin, AST has mitigated risk by partnering with multiple launch providers, with its next planned launch of three BlueBird satellites scheduled on SpaceX's Falcon 9 rocket, ensuring that its launch plans remain unaffected.
- Uncertain Commercial Prospects: Although AST aims to increase its satellite count to 45 by year-end to initiate commercial direct-to-cell satellite services, the lack of support from Blue Origin may complicate this goal, highlighting the high-risk nature of investing in start-ups.
See More
Blue Origin Rocket Explosion Causes Space Stocks to Plummet
- Rocket Testing Incident: A rocket being tested by Jeff Bezos' Blue Origin exploded on the launchpad at Cape Canaveral, Florida, leading to a widespread decline in space technology stocks during early trading on Friday, with AST SpaceMobile's shares plummeting 18.5%, indicating market concerns over launch capabilities.
- Deutsche Bank Downgrade: Deutsche Bank downgraded AST SpaceMobile from Buy to Hold with a price target of $106, stating that without Blue Origin's support, ASTS will struggle to meet its target of launching approximately 45 satellites by the end of 2026, significantly impacting its competitive position in the market.
- SpaceX Valuation Cut: A Bloomberg report indicated that SpaceX is targeting a valuation of $1.8 trillion, down from $2 trillion reported in April, reflecting a cautious market sentiment towards the aerospace sector and exacerbating investor concerns.
- Widespread Decline in Space Stocks: The fallout from the incident caused other U.S. space-related stocks to drop significantly, including Rocket Lab down 5.4% and Intuitive Machines down 12.3%, showcasing a broader decline in investor confidence in the aerospace industry.
See More
Dell Technologies Shares Surge 37% After Raising Full-Year Guidance
- Dell Technologies Surge: Dell Technologies' stock surged nearly 37% after raising its full-year guidance, projecting adjusted earnings of $17.90 per share and revenue between $165 billion and $169 billion, significantly exceeding analysts' expectations of $13.09 per share and $142.5 billion in revenue, indicating robust market demand and profitability.
- Computer Sector Rally: Following Dell's strong performance, shares of other computer hardware and services companies also rose, with Hewlett Packard Enterprise up over 17%, Super Micro Computer rising nearly 10%, and HP increasing almost 7%, reflecting optimistic sentiment towards the computer industry's outlook.
- American Eagle Outfitters Decline: Shares of American Eagle Outfitters dropped about 11% as comparable sales at its American Eagle banner fell 2% in Q1, missing analysts' expectations of 3.1% growth, while disappointing second-quarter operating income guidance further highlights challenges in the retail sector.
- Space Stocks Decline: Shares of space-related companies fell after a Blue Origin rocket exploded during a ground test in Florida, with AST SpaceMobile tumbling nearly 15%, EchoStar down 4.5%, and Rocket Lab down 5.5%, reflecting investor concerns over risks in the space industry.
See More
U.S. Stock Futures Steady as Dell Technologies Soars on AI Growth
- Dell Technologies Surge: Dell Technologies reported explosive growth in its AI-optimized server business, which accounted for over one-third of total sales, leading to a 40% increase in premarket trading, highlighting the company's strong competitive position in the rapidly expanding AI market.
- Space Stocks Volatility: Following a Blue Origin rocket explosion, space stocks experienced significant volatility, with SpaceX's upcoming IPO valuation being lowered from $2 trillion to $1.8 trillion, reflecting market concerns about the future of the space industry.
- Market Sentiment Recovery: Despite uncertainties, retail sentiment towards the SPDR S&P 500 ETF remains in 'bullish' territory, while the Invesco QQQ Trust tracking the Nasdaq-100 Index holds a 'neutral' stance, indicating cautious optimism among investors regarding market conditions.
- Economic Data Focus: Investors are closely watching the upcoming U.S. trade balance and Chicago PMI data releases, along with speeches from multiple Federal Reserve officials, which could influence market trends and provide insights into economic health.
See More
SpaceX Targets IPO Valuation of $1.8 Trillion, Below Expectations
- IPO Valuation Adjustment: SpaceX is targeting an IPO valuation of at least $1.8 trillion, down from earlier expectations exceeding $2 trillion, which may impact investor confidence and lead to stock price volatility.
- Funding Goals: Despite the valuation cut, SpaceX aims to raise up to $75 billion, potentially making it the largest IPO in Wall Street history, indicating strong market recognition of its long-term potential.
- Market Reaction: Following the SpaceX IPO news, stocks of Rocket Lab (RKLB), Redwire (RDW), and Intuitive Machines (LUNR) generally fell in trading, with AST SpaceMobile (ASTS) dropping 11%, reflecting a cautious investor sentiment towards future market conditions.
- Industry Outlook: In its IPO filing, SpaceX outlined a target market of $28.5 trillion, including a $1.6 trillion opportunity from Starlink broadband, indicating significant growth potential for the company in the future space economy.
See More
AST SpaceMobile and Others Hit 52-Week Highs
- AST SpaceMobile Surge: AST SpaceMobile's stock reached a 52-week high of $133.80, driven by investor enthusiasm for its upcoming BlueBird satellite launch, which is expected to enhance its competitive edge in the satellite communications market.
- Intuitive Machines Recovery: Intuitive Machines' stock rebounded to $46.70, completely reversing an earlier sell-off triggered by NASA's decision not to award it lunar rover contracts, indicating strong investor confidence in its long-term potential in lunar exploration.
- Redwire's Breakthrough: Redwire's stock hit a year high of $26.60, on track for its best weekly performance in three years, as it announced plans to provide key navigation technology for NASA's Dragonfly mission, solidifying its position in aerospace and defense.
- Optimistic Market Sentiment: Year-to-date, AST SpaceMobile, Intuitive Machines, and Redwire stocks have surged 83%, 181%, and 240% respectively, reflecting strong investor interest and optimism in the aerospace sector.
See More
AST SpaceMobile Faces Crisis with Launch Partner Blue Origin
- Launch Partner Crisis: AST SpaceMobile's launch partner Blue Origin experienced an explosion of its New Glenn rocket at Cape Canaveral, severely damaging the launch facility and causing AST's stock to drop 17.3%, indicating market concerns over its future launch plans.
- Historical Mishap: This marks the second incident related to Blue Origin for AST, as a previous rocket anomaly prevented a satellite from reaching orbit, raising doubts about AST's confidence in Blue Origin and potentially affecting future collaboration decisions.
- Diversified Launch Strategy: Despite the crisis with Blue Origin, AST has mitigated risk by partnering with multiple launch providers, with its next planned launch of three BlueBird satellites scheduled on SpaceX's Falcon 9 rocket, ensuring that its launch plans remain unaffected.
- Uncertain Commercial Prospects: Although AST aims to increase its satellite count to 45 by year-end to initiate commercial direct-to-cell satellite services, the lack of support from Blue Origin may complicate this goal, highlighting the high-risk nature of investing in start-ups.
See More
Blue Origin Rocket Explosion Causes Space Stocks to Plummet
- Rocket Testing Incident: A rocket being tested by Jeff Bezos' Blue Origin exploded on the launchpad at Cape Canaveral, Florida, leading to a widespread decline in space technology stocks during early trading on Friday, with AST SpaceMobile's shares plummeting 18.5%, indicating market concerns over launch capabilities.
- Deutsche Bank Downgrade: Deutsche Bank downgraded AST SpaceMobile from Buy to Hold with a price target of $106, stating that without Blue Origin's support, ASTS will struggle to meet its target of launching approximately 45 satellites by the end of 2026, significantly impacting its competitive position in the market.
- SpaceX Valuation Cut: A Bloomberg report indicated that SpaceX is targeting a valuation of $1.8 trillion, down from $2 trillion reported in April, reflecting a cautious market sentiment towards the aerospace sector and exacerbating investor concerns.
- Widespread Decline in Space Stocks: The fallout from the incident caused other U.S. space-related stocks to drop significantly, including Rocket Lab down 5.4% and Intuitive Machines down 12.3%, showcasing a broader decline in investor confidence in the aerospace industry.
See More
Dell Technologies Shares Surge 37% After Raising Full-Year Guidance
- Dell Technologies Surge: Dell Technologies' stock surged nearly 37% after raising its full-year guidance, projecting adjusted earnings of $17.90 per share and revenue between $165 billion and $169 billion, significantly exceeding analysts' expectations of $13.09 per share and $142.5 billion in revenue, indicating robust market demand and profitability.
- Computer Sector Rally: Following Dell's strong performance, shares of other computer hardware and services companies also rose, with Hewlett Packard Enterprise up over 17%, Super Micro Computer rising nearly 10%, and HP increasing almost 7%, reflecting optimistic sentiment towards the computer industry's outlook.
- American Eagle Outfitters Decline: Shares of American Eagle Outfitters dropped about 11% as comparable sales at its American Eagle banner fell 2% in Q1, missing analysts' expectations of 3.1% growth, while disappointing second-quarter operating income guidance further highlights challenges in the retail sector.
- Space Stocks Decline: Shares of space-related companies fell after a Blue Origin rocket exploded during a ground test in Florida, with AST SpaceMobile tumbling nearly 15%, EchoStar down 4.5%, and Rocket Lab down 5.5%, reflecting investor concerns over risks in the space industry.
See More
U.S. Stock Futures Steady as Dell Technologies Soars on AI Growth
- Dell Technologies Surge: Dell Technologies reported explosive growth in its AI-optimized server business, which accounted for over one-third of total sales, leading to a 40% increase in premarket trading, highlighting the company's strong competitive position in the rapidly expanding AI market.
- Space Stocks Volatility: Following a Blue Origin rocket explosion, space stocks experienced significant volatility, with SpaceX's upcoming IPO valuation being lowered from $2 trillion to $1.8 trillion, reflecting market concerns about the future of the space industry.
- Market Sentiment Recovery: Despite uncertainties, retail sentiment towards the SPDR S&P 500 ETF remains in 'bullish' territory, while the Invesco QQQ Trust tracking the Nasdaq-100 Index holds a 'neutral' stance, indicating cautious optimism among investors regarding market conditions.
- Economic Data Focus: Investors are closely watching the upcoming U.S. trade balance and Chicago PMI data releases, along with speeches from multiple Federal Reserve officials, which could influence market trends and provide insights into economic health.
See More
SpaceX Targets IPO Valuation of $1.8 Trillion, Below Expectations
- IPO Valuation Adjustment: SpaceX is targeting an IPO valuation of at least $1.8 trillion, down from earlier expectations exceeding $2 trillion, which may impact investor confidence and lead to stock price volatility.
- Funding Goals: Despite the valuation cut, SpaceX aims to raise up to $75 billion, potentially making it the largest IPO in Wall Street history, indicating strong market recognition of its long-term potential.
- Market Reaction: Following the SpaceX IPO news, stocks of Rocket Lab (RKLB), Redwire (RDW), and Intuitive Machines (LUNR) generally fell in trading, with AST SpaceMobile (ASTS) dropping 11%, reflecting a cautious investor sentiment towards future market conditions.
- Industry Outlook: In its IPO filing, SpaceX outlined a target market of $28.5 trillion, including a $1.6 trillion opportunity from Starlink broadband, indicating significant growth potential for the company in the future space economy.
See More
AST SpaceMobile and Others Hit 52-Week Highs
- AST SpaceMobile Surge: AST SpaceMobile's stock reached a 52-week high of $133.80, driven by investor enthusiasm for its upcoming BlueBird satellite launch, which is expected to enhance its competitive edge in the satellite communications market.
- Intuitive Machines Recovery: Intuitive Machines' stock rebounded to $46.70, completely reversing an earlier sell-off triggered by NASA's decision not to award it lunar rover contracts, indicating strong investor confidence in its long-term potential in lunar exploration.
- Redwire's Breakthrough: Redwire's stock hit a year high of $26.60, on track for its best weekly performance in three years, as it announced plans to provide key navigation technology for NASA's Dragonfly mission, solidifying its position in aerospace and defense.
- Optimistic Market Sentiment: Year-to-date, AST SpaceMobile, Intuitive Machines, and Redwire stocks have surged 83%, 181%, and 240% respectively, reflecting strong investor interest and optimism in the aerospace sector.
See More
