contra
Oppenheimer analyst Timothy Horan applauded SpaceX’s deal for Cursor in a note on Thursday, claiming the acquisition could boost its shares to $250 by the end of the year, up from an earlier projection of $190. “This deal is beneficial for both sides,” Horan wrote, adding that Cursor will have access to SpaceX’s computing power, while SpaceX gets Cursor’s AI technology, engineering talent, training data and user base.
forbes valuation
A further decline in SpaceX shares reduced CEO Elon Musk’s net worth by $67.8 billion to about $1.2 trillion, according to Forbes’ estimates. His fortune hit a record high above $1.4 trillion amid SpaceX’s three-day winning streak, and Musk still ranks well above Google cofounder Larry Page ($300.8 billion) as the richest person in the world.
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key background
SpaceX shares skyrocketed 50% above its $135 IPO price through its three-day streak, boosted by record-setting investor demand. Morningstar analysts have warned investors about trading SpaceX shares since before its IPO, arguing the company is “significantly overvalued” and that its market value is tied to technologies it claims are “novel and untested.” PitchBook’s Franco Granda wrote in March that SpaceX may trade similarly to Tesla “on steroids,” as trading in Musk’s automaker is often volatile among other mega-cap stocks. Other analysts have claimed SpaceX has emerged as the latest meme stock, including Swissquote analyst Ipek Ozkardeskaya, who said investors are buying SpaceX “in the expectation that others will buy too and push the price higher.” Ozkardeskaya argued SpaceX is “burning cash,” as its Starlink business has been unable to counter heavy spending on space exploration.
further reading
ForbesSpaceX Shares Drop 6% In First Decline Since Historic IPOBy Ty Roush