Shares of Space Exploration Technologies Corp. (NASDAQ:SPCX) rose 1.14% to $156.37 in premarket trading on Tuesday, following a cautious “Neutral” rating from Susquehanna International Group, LLP analyst Charles Minervino, who advised that he “would recommend waiting for a better entry point on the stock.”
Premium Valuation Risks
This choppy pre-market action follows Monday’s staggering 16.43% sell-off, which erased more than $400 billion from the space giant’s market capitalization as retail hype faces a sharp public market reality check.
Susquehanna initiated coverage on the newly public company with a $170 price target, representing a modest 9.96% projected upside from current levels.
Despite forecasting a massive 81% revenue CAGR and a 76% adjusted EBITDA CAGR for the 2025–2028 timeframe, Minervino flagged significant embedded risks.
“We believe the current valuation requires premium multiples on very aggressive revenue and EBITDA growth assumptions,” the firm noted. Because some of SpaceX‘s target markets remain relatively unproven, Susquehanna warned that a wide range of outcomes exists, introducing “quite a bit of risk into future expectations.”
Massive Valuation Wipeout
The multi-day decline comes on the heels of SpaceX‘s highly anticipated June 12 public debut at $135 per share.
Monday’s historic $400.8 billion single-day decline reduced SpaceX’s market value to approximately $2.04 trillion, positioning it as the seventh most valuable company in the world.
To put the staggering loss into perspective, the single-day drop represents the entire combined market capitalizations of Palantir Technologies Inc. (NASDAQ:PLTR) at $286.5 billion and Robinhood Markets Inc. (NASDAQ:HOOD) at $95.2 billion, with another $19.1 billion completely vanishing alongside them.
Growth Catalysts Ahead
While advocating for temporary investor patience, Susquehanna acknowledged SpaceX’s undeniable long-term potential. The firm highlighted core advantages, including its “dominant position in rocket launch supported by its reusable booster technology” and Starlink’s global connectivity business.
Furthermore, the analyst praised its “early-stage, vertically-integrated artificial intelligence offering” and Elon Musk‘s leadership to steer new growth vectors.
How Has SPCX Performed Since Listing?
Shares of SPCX were up 14.52% from its IPO price of $135 since its listing on Friday, June 12. After falling 16.43% to $154.60 apiece on Monday, the shares flattened out and rose a slight 1.14% to $156.37 in pre-market trading on Tuesday.
Benzinga’s Edge Stock Rankings indicate that SPCX maintains a weak price trend in the short, medium, and long terms.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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