On Monday, SpaceX's stock price rose, briefly reaching its IPO price of $135 after a turbulent trading period that saw it dip as low as $108.27. The company reported $7.81 billion in revenue for the second quarter, surpassing analyst expectations of $6.93 billion.
CFO Bret Johnsen indicated that SpaceX is on track to achieve $100 billion in annualized recurring revenue by year-end, a target deemed 'likely very achievable' by Deutsche Bank analysts. They anticipate that this growth will primarily stem from SpaceX's neocloud business and its acquisition of AI coding company Cursor.
The expiration of the first stock lockup period last week, which allowed over 911 million shares to become liquid, raised concerns about potential volatility, especially since this number exceeds the 639 million shares sold during the IPO.
Despite these challenges, analysts remain optimistic, with Citi raising their forecasts for 2026 and 2027 and maintaining a price target of $200, while Wolfe Research advised caution despite acknowledging the positive earnings report.
Overall, while the stock's recent performance is encouraging, analysts suggest investors should remain vigilant regarding management's ambitious goals versus likely outcomes