SpaceX results may boost stock recovery
Since its initial public offering, SpaceX's stock has experienced a significant decline, falling from its June peak by 49% to around $114.53, erasing more than one trillion dollars from its market value of approximately $1.5 trillion. The company is not yet profitable, and its business model remains uncertain, making it difficult to attract investors despite its high valuation of about 448 times expected earnings. Estimates forecast a loss of 24 cents per share in the second quarter, with capital expenditure rising to nearly $45.5 billion in 2026, amid expectations that a wave of stock sell-offs following the end of lock-up periods will put further downward pressure on the stock. The company's valuation is very high, trading at one of the highest price-to-earnings multiples among Nasdaq companies. However, most analysts remain optimistic, with projections suggesting the stock could reach $800 within 12 months, based on expected revenue growth and ambitious investments in artificial intelligence and Starlink.
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