SpaceX Nears $100 as Morgan Stanley Says Market Prices AI at Zero
Updated
Updated · Los Angeles Times · Jul 27
SpaceX Nears $100 as Morgan Stanley Says Market Prices AI at Zero
3 articles · Updated · Los Angeles Times · Jul 27
Summary
$100 a share would imply investors assign zero or even negative value to SpaceX’s AI business, Morgan Stanley said, as the post-IPO selloff pushed the stock near $110 and investors brace for next month’s lockup expiry.
The bank kept a buy-equivalent rating and a $300 target, with more than half that valuation tied to AI, arguing bearish sentiment has diverged from largely unchanged fundamentals in launch, connectivity and AI.
The retreat reflects a broader rotation out of AI-heavy tech companies as high capital spending, a shaky macro backdrop and U.S.-Iran tensions lift oil prices and inflation worries, hurting risk appetite.
Shares have fallen sharply after an $86 billion June offering and a brief early surge, with Monday’s slide to a record low also deepened by a Starship booster failure that added scrutiny to the newly public company.