SpaceX shares experienced a significant surge in premarket trading on Monday, building on the momentum from its historic Nasdaq debut last week, which shattered records as the largest initial public offering in history.
The space exploration giant’s stock was up approximately 6% in early premarket activity.
Following its IPO pricing at $135 per share, SpaceX saw a remarkable 19% jump on Friday, closing the trading session at $161. This surge propelled the company’s market capitalization to an astounding figure exceeding $2 trillion.
Elon Musk’s ambitious venture, renowned for its Starlink satellite internet service and a formidable fleet of reusable rockets, has recently integrated with his artificial intelligence startup, xAI. This strategic merger, finalized in February, underscores SpaceX’s expanding technological footprint. Despite the blockbuster IPO and impressive valuation, the company’s financial performance, including a reported net loss of nearly $5 billion in 2025, has ignited a fervent debate among analysts regarding the sustainability of its current valuation.
In a starkly contrasting assessment, CFRA initiated coverage of SpaceX on Friday with a “sell” rating and a 12-month price target of $115. This target represents a nearly 29% potential decline from the previous day’s closing price. CFRA cited the company’s “extremely ambitious growth strategy, elevated valuation expectations, and significant capital intensity” as key factors driving its bearish outlook. The firm’s analysis highlights SpaceX’s substantial capital expenditures, which totaled $10.1 billion in the first quarter of the current year, a substantial increase from $4.1 billion in the same period last year. A significant portion of this increased investment has been directed towards artificial intelligence initiatives, reflecting a strategic pivot towards leveraging AI for future growth and operational efficiencies.
Adding to the critical perspective, Morningstar analyst Nicolas Owens released a note on June 8th, valuing SpaceX at $63 per share and labeling the stock as “overvalued.” This valuation suggests a substantial disconnect between the company’s current market price and Morningstar’s assessment of its intrinsic worth, further intensifying the debate surrounding its equity.
However, the market sentiment is not uniformly bearish. New Street Research, taking a more optimistic stance, initiated coverage of SpaceX with a price target of $165, signaling confidence in the company’s future growth prospects and its ability to command a premium valuation.
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