Analysts Clash Over SpaceX $2 Trillion Market Valuation

Wall Street analysts are deeply divided over the valuation of Space Exploration Technologies, which currently holds a market capitalization of approximately $2 trillion. While 26 of 34 analysts recommend buying the stock, price targets vary significantly, ranging from a Morningstar valuation of $63 per share to an outlier target of $800.

Bullish analysts from Morgan Stanley and Oppenheimer argue that the company's vertically integrated AI infrastructure, bolstered by the acquisition of xAI, could position it as the world's largest AI company. Andrew Beale of Arete Research set a 12-month target of $450 per share, which would value the company at $6 trillion based on the growth of the Starlink connectivity platform.

Critics argue the current valuation is excessive, noting that the company is operating in the red. They point out that the stock trades at nearly 45 times its expected annual revenue of $44.7 billion.