SpaceX's IPO has emerged as one of the biggest debuts of the year, with shares rising 40% since their debut last week despite recent volatility. According to KTLA, the stock has experienced some downward pressure, falling another 5% or so on Thursday, but the overall momentum remains strong. The company's market debut has made Elon Musk the first trillionaire in the process, highlighting the massive valuation achieved through the public offering. This strong performance comes as OpenAI and Anthropic are also preparing for their market debuts, creating a significant moment in the technology sector.
A Wall Street research firm has issued a bullish prediction for SpaceX shares, suggesting the stock could more than double from current levels by 2027. According to reports from CNBC TV18, the target price would place SpaceX shares above $400, representing significant upside potential from current trading levels. Arete Research specifically set a $401 price target for the end of 2027, with shares closing near $192 but down more than 6% in afternoon trading on Thursday. The optimistic outlook is based on several key factors identified by Arete Research, including Starship reusability technology, launch volume news, and the installation of space-based data centers and expansion of Starlink satellites.
As SpaceX grows and becomes one of the most valuable companies in the world, institutional investors are increasingly gaining exposure through index funds. According to KTLA, SpaceX already has about 1% of its shares owned by Fidelity, which is the largest manager of 401(k)s, and it's now spreading its holdings across multiple funds. The company is widely expected to reach the S&P 500 by next year, with SpaceX soon becoming eligible for the Nasdaq-100, a stock market index tracking 100 of the largest non-financial companies. This institutional adoption is expected to continue as the company's market cap grows, potentially making it accessible to retail investors through various investment vehicles.
The potential doubling of SpaceX's price would be especially notable considering the company's recent financial performance. SpaceX reported a loss of about $4.3 billion in its latest quarter, according to Forbes, demonstrating the company's ongoing path to profitability. With about 13 billion shares outstanding and an IPO listing price of $135, the company has already met and surpassed its initial valuation target of $1.75 trillion. The stock move could make SpaceX the largest company in the world, though this remains speculative given the company's current profitability challenges and recent quarterly losses.
