SpaceX’s first earnings offer a chance to reverse stock’s plunge
Earnings will give investors a chance to reassess the stock
SpaceX's debut earnings report is generating buzz on Wall Street as investors await a chance to determine whether the company's stock prices have bottomed out following a significant decline. The company, founded by Elon Musk, went public in June at $135 per share, and its stock has experienced a roller coaster ride, reaching a high of $225 before plummeting to $114.53, down 15% from its IPO price and 49% from its June peak.
SpaceX's current lack of profitability and speculative business model have led many to question the value of its shares, despite their high valuation of 448 times estimated earnings per share, the highest among Nasdaq 100 Index members. The upcoming earnings report, however, may offer some clarity, as management is expected to discuss progress with AI, Starlink, and rocket launch business.
Despite the anticipated flood of 911.5 million new shares hitting the market on August 6, Wall Street remains optimistic about SpaceX's potential, with 30 of 39 analysts maintaining buy ratings and few adjusting their ambitious forecasts for the company's future growth.
Written by urgent.news from Hindu BusinessLine's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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