SpaceX bulls would be wise to remember one thing

SpaceX investors should pay close attention to the company's cash flow statement over the next year, as significant expenses and capital raises are on the horizon. KeyBanc analyst Michael Leshock predicts that SpaceX will invest $250 billion to $300 billion in capital expenditures by the end of 2027, to achieve a more conservative path of 6-7 GW of AI capacity buildout, rather than the potentially higher 8-9 GW.

The company's sizable $100 billion cash balance and current free cash flow burn rate will likely prompt additional capital raises over the next 18-24 months, with an estimated $325 billion in new funding. Despite a rough start with heavy losses and capital expenditures well above market expectations, SpaceX stock has rallied from post-IPO lows, and 80% of sell-side analysts rate the company as a Buy or Strong Buy.

SpaceX's Starship rocket, a key milestone for achieving full reusability, is expected to launch soon, marking an important proof point for the capital investments planned by CEO Elon Musk.