SpaceX shares rocket 40% in 2 days. How do the experts rate this stock?

SpaceX shares were US$135 apiece in Friday's IPO. They closed overnight at US$192.50.

Space Exploration Technologies Corp (NASDAQ: SPCX) shares sure did achieve lift-off!

SpaceX shares have rocketed 40% in just two days of trading, closing at US$192.50 overnight.

The largest initial public offering (IPO) in history raised US$75 billion at US$135 per share last Friday.

The IPO made founder Elon Musk, who also founded Tesla Inc (NASDAQ: TSLA), the world's first trillionaire.

Three rockets heading to space

Image source: Getty Images

What happened with SpaceX shares?

The stock debuted on the Nasdaq Composite Index (NASDAQ: .IXIC) at midday on Friday (Saturday night Aussie time).

SpaceX shares closed 19.2% higher at US$160.95 on their first part-day of trading.

Overnight, SpaceX shares soared again in their first full trading session, gaining 19.6% to close at US$192.50.

In after hours trading, SpaceX shares are currently 12.1% higher at US$215.80.

SpaceX shares now have a market capitalisation of US$2.52 trillion.

That makes the company the seventh most valuable business in the S&P 500 Index (SP: .INX).

Its worth has already exceeded Tesla, which has a market cap of US$1.54 trillion, and is now in ninth place.

What does SpaceX do?

SpaceX offers rocket launch and satellite internet services.

Starlink is the satellite internet business. It uses thousands of satellites in low-Earth orbit to deliver broadband internet services via subscription.

SpaceX also offers launch services with its Falcon 9 and Falcon Heavy rockets to satellite companies, governments, and space agencies.

The longer-term ambition is to develop Starship, a next-generation rocket and spacecraft system capable of carrying large cargo into space and supporting missions to the Moon and Mars.

The company also owns xAI and is investing in artificial intelligence (AI) infrastructure.

What do the experts think of SpaceX shares?

The first lot of ratings and 12-month share price targets from brokers reveals differing views.

Global brokerage and investment bank Oppenheimer initiated coverage on SpaceX shares with a buy rating.

In an article, analyst Timothy Horan said:

We believe SpaceX represents an opportunity to own a leading AI and connectivity giant, while also capturing the optionality of space economies.

We see its ownership of critical/unique data, LLM capabilities, and control over scarce computer chips and infrastructure as giving it a major cost and service advantage that should enable it to raise the capital required for the build.

We believe the company is the only one with the required capital access, people, manufacturing, data and technology to be a disruptive entrant in connectivity, AI, and space, and to ultimately be a leader in these industries.

In just two days of trading, SpaceX shares have already gone beyond Oppenheimer's initial 12-month price target of $190.

Independent sell-side research firm, Wolfe Research, also has a buy rating on SpaceX shares. Its 12-month target is $175.

Global independent investment research house, CFRA, reckons retail investors should take their already massive profits and run.

CFRA has a sell rating on SpaceX shares with a $115 target. This implies a potential 40% downside from here.

CFRA refers to "extraordinary risks" in a detailed report by senior analyst, Keith Snyder.

The company said: "SpaceX isn't just a rocket company – it's a space industrial, a global telco, and a frontier AI lab all rolled into one."


Motley Fool contributor Bronwyn Allen has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Tesla. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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