SpaceX Is Trading Near Its $135 Offering Price. Wall Street Analysts Say This Is What Happens Next.

Key Points:

• Space Exploration Technologies (SpaceX) stock currently trades around its IPO price of $135, with Wall Street analysts optimistic, setting an average price target of $218.
• SpaceX is aggressively investing in AI infrastructure, generating $2.56 billion in AI revenue last quarter and aiming for $100 billion in annual recurring revenue by 2026 through data center capacity and AI contracts.
• Despite heavy capital expenditures and a $1.2 billion operating loss in AI segments, SpaceX expects long-term revenue growth potentially reaching $1 trillion by 2030, driven by AI infrastructure both on Earth and in orbit.
• The profitable Starlink internet service, with $4.2 billion in revenue and $1.67 billion in operating earnings last quarter, is currently SpaceX's main source of profit and could scale to $50 billion in revenue with a 39% profit margin.
• Wall Street's valuation implies a market cap of nearly $3 trillion, which would correspond to an earnings multiple over 100 times based on Starlink's segment earnings, indicating high expectations and significant risk.