One month after its historic June 12 IPO, Elon Musk’s Space Exploration Technologies Corp.
(NASDAQ:SPCX) is facing a reality check.
Shares have plummeted 35.60% from their all-time high of $225.64 to Friday's close of $145.30, exposing a widening divide between analysts who view the company as a transformative industrial power and those who fear it is becoming a speculative "meme stock." The Valuation Chasm Wall Street is sharply divided over SpaceX's valuation and long-term outlook.
On one side, Raymond James initiated coverage with a "Strong Buy" and an $800 price target, framing SpaceX as "the defining industrial infrastructure company of the 21st century." Conversely, Morgan Stanley analysts have highlighted a massive $672 billion "funding risk," forecasting no free cash flow before 2035.
Short-seller Jim Chanos ridiculed the bank’s internal contradiction, calling the disclosure of that massive capital need—while still issuing a buy recommendation—"truly glorious." I know we are only halfway through the year, but I feel it will be hard to top this comment from one of the obligatory buy recommendations on $SPCX issued by one of the underwriters this week.
