SpaceX Is $15 Away From A ‘Worthless’ AI Business Says Morgan Stanley

Key Points:

• SpaceX's share price experienced significant volatility after its IPO, peaking at $201.80 shortly after launch but falling to $115.07 by late July, wiping out approximately $1 trillion in market value from a peak of $3 trillion.
• The company's valuation heavily depends on future performance expectations, with Starlink identified as the only profitable segment, while the AI division faces skepticism due to high costs and uncertain economics.
• In Q1 2026, SpaceX's connectivity segment showed strong operational income, whereas the space launch and AI divisions reported substantial losses, highlighting challenges in profitability despite market dominance in space launches.
• Analysts, including those at Morgan Stanley, suggest the current share price decline may present a buying opportunity, though they caution investors to consider the high risks and uncertainties involved.
• The situation underscores the speculative nature of IPO valuations and the importance of assessing risk tolerance amid hype and market fluctuations.