SpaceX shares rose approximately 6% in premarket trading on Monday, reaching around $170, following the company's record-breaking debut on the Nasdaq last week, which was the largest initial public offering in history [1]. On Friday, SpaceX shares jumped 19%, closing at $161 after being priced at $135 per share for the IPO, resulting in a market capitalization exceeding $2 trillion [1].
The company, led by Elon Musk, operates the Starlink satellite internet service and a fleet of reusable rockets. In February, Musk merged SpaceX with his artificial intelligence startup xAI [1]. Despite the strong market debut, SpaceX reported a loss of nearly $5 billion in 2025, and the IPO has sparked debate regarding the justification of its high valuation [1].
Analyst opinions are divided. CFRA initiated coverage with a 'sell' rating and set a 12-month price target of $115, representing a nearly 29% decline from Friday's close, citing concerns over SpaceX's ambitious growth strategy, high valuation expectations, and significant capital intensity [1]. The company's capital expenditures for the first quarter of the year were $10.1 billion, up from $4.1 billion in the same period last year, with most of the spending directed toward artificial intelligence [1]. Morningstar analyst Nicolas Owens valued SpaceX at $63 per share, calling the stock 'overvalued' [1]. In contrast, New Street Research initiated coverage with a more optimistic price target of $165 [1].
No specific market reactions beyond the share price movements were discussed, but the range of analyst opinions highlights ongoing uncertainty regarding SpaceX's valuation and future performance [1].
CONCLUSION
SpaceX's record-setting IPO and subsequent share surge have propelled its valuation above $2 trillion, but analysts remain divided on the company's prospects. While some see significant downside risk due to high spending and valuation, others are more optimistic. The market's focus will likely remain on SpaceX's ability to justify its lofty valuation amid ambitious growth plans and heavy capital expenditures.