SpaceX stock jumps 20% on first full trading day; CFRA issues 'sell' rating citing valuation concerns
By
Arjun Kharpal
5h ago· 3 min readenNews
65/100
Toasty
Bagelometer↗
Warm and crisp on the edges. A bagel with a bit of bite.
Score65TypenewsSentimentneutral
Summary
SpaceX's stock surged 20% on its first full day of trading following a record debut, pushing the company's valuation to over $2 trillion. However, CFRA initiated coverage with a "sell" rating and a $115 price target (nearly 29% below the closing price), citing concerns over the company's ambitious growth strategy, high valuation, and significant capital intensity. SpaceX's capital expenditures reached $10.1 billion in Q1, up from $4.1 billion a year earlier, with most spending directed toward artificial intelligence.
Key quotes
· 2 pulledCFRA said its view was 'due to the company's extremely ambitious growth strategy, elevated valuation expectations, and significant capital intensity.'
SpaceX's capital expenditures in the three months ended March totaled $10.1 billion versus $4.1 billion in the same period last year.
SpaceX is valued at over $2 trillion after its stock rallied on the first day of trading last week.
