Key Points
Space Exploration Technologies (SpaceX) raised $85.7 billion from its initial public offering (IPO) on June 12, nearly tripling the previous record for an IPO. The offering had 21 underwriters, led by Goldman Sachs, with 30 of 38 analysts currently rating the stock as a buy, despite it trading 15% below its IPO price as of July 24 and nearly 50% off its all-time high.
CFRA Research analyst Keith Snyder is the only Wall Street analyst to issue a sell rating on SpaceX, with a price target of $115. Snyder has expressed skepticism regarding SpaceX’s claimed total addressable market of $28.5 trillion, citing the company’s inability to generate recurring profits and potential challenges such as delays and capital intensiveness.
Snyder noted, “Musk isn’t infallible,” pointing out that multiple ambitious promises made by Elon Musk have not materialized, urging caution for investors pursuing SpaceX as a high-reward opportunity.
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