Perhaps you’ve heard of a little company called SpaceX (SPCX)? It has been anything BUT a rocket ride for shareholders post-IPO. So, what comes next?
Take a gander at the MoneyShow Chart of the Day, which comes courtesy of Bloomberg. You can see where the company priced its IPO, how high it initially traded, where it has sunk in the weeks since then, and where most analysts are predicting it will ultimately head to.
SpaceX (SPCX)
Source: Bloomberg
I bring it up because Morgan Stanley (MS) defended the name on Friday, citing “the current disconnect between increasingly bearish investor sentiment and largely unchanged fundamentals.”
The firm’s analyst Adam Jonas said investors were basically writing off the value of the firm’s AI businesses – which include things like Grok and Cursor. He disagrees with that assessment...and is sticking with his $300 price target on the stock.
SpaceX was worth about $2.64 trillion at its post-IPO peak. Its market capitalization has shrunk to around $1.48 trillion now. Or in plain English, more than a trillion bucks in value has gone up in smoke.
If Adam is right, this is the opportunity of a lifetime. Other experts I’ve spoken with, including Eva Ados in this MoneyShow MoneyMasters Podcast episode I just recorded in Las Vegas, agree. Food for thought amid this pullback.
