SpaceX shares experienced a notable increase of around 6% in premarket trading, reaching approximately $170, following a record-setting initial public offering (IPO) that marked the largest in history. The stock had previously closed at $161 after a 19% rise on Friday, with the IPO price set at $135 per share, pushing the company's market capitalization above $2 trillion.
Despite this impressive debut, concerns about SpaceX's valuation have emerged, particularly after the company reported a loss of nearly $5 billion in 2025. CFRA initiated coverage with a 'sell' rating and a price target of $115, citing the company's ambitious growth strategy and high capital intensity as reasons for their cautious outlook.
In contrast, Morningstar analyst Nicolas Owens assessed the stock's value at $63 per share, labeling it as 'overvalued.' However, some analysts remain optimistic, with New Street Research setting a price target of $165.
The significant capital expenditures of $10.1 billion in the first quarter of 2026, primarily directed towards artificial intelligence, further complicate the narrative around SpaceX's financial health and future growth potential