SpaceX Trades Near $135 IPO Price as Analysts See $218 on AI, Starlink Growth
Updated
Updated · The Motley Fool · Aug 29
SpaceX Trades Near $135 IPO Price as Analysts See $218 on AI, Starlink Growth
3 articles · Updated · The Motley Fool · Aug 29
Summary
$135 marks where SpaceX shares now sit after a volatile post-IPO stretch, even as Wall Street's average target stands far higher at $218.
$2.56 billion in quarterly AI revenue underpins that optimism, with SpaceX expanding data-center capacity and targeting $100 billion in annual recurring revenue by end-2026.
$15.8 billion in quarterly AI capital spending is still producing losses — the segment posted a $1.2 billion operating loss as SpaceX builds out infrastructure.
$4.2 billion in Starlink revenue, up 66% year over year, generated $1.67 billion in operating earnings last quarter, making broadband the company's only profitable business.
$1.9 trillion in market value leaves little room for error: reaching the $218 target would push SpaceX toward $3 trillion, making future returns hinge on whether its AI bets become highly profitable.
With a $25 billion cash burn and historical IPO trends pointing downward, is SpaceX's trillion-dollar valuation a ticking time bomb for investors?
Can SpaceX's unproven orbital AI data centers justify massive spending, or is this sci-fi vision masking declining Starlink user revenues?
Will absolute founder voting control protect SpaceX’s visionary space goals, or trap public shareholders in an endless cycle of infrastructure spending?