Stock Market Today, Oct. 23: SpaceX Achieves Rare Double Upgrade to Buy on AI Growth

On October 23, SpaceX experienced a rare double upgrade from Wall Street, with its shares soaring to new heights. The electric-vehicle and space exploration company, which trades under the ticker SPCX, closed at $147.49, marking a 1.89% increase. Analysts' enthusiasm was fueled by SpaceX's third-quarter earnings report, which revealed that its Super Intelligence (SI) business generated an impressive $7.6 billion in revenue, a significant jump from $813 million the previous year.

This growth propelled SpaceX's total revenue to $14.6 billion, representing a staggering 161% increase year-over-year.

Phillip Securities analyst Glenn Thum was among the first to acknowledge the company's potential, upgrading his rating from Sell to Buy and significantly raising the price target from $75 to $250 per share. This upgrade implies an extraordinary upside potential of over 70% from SpaceX's current trading level. CEO Elon Musk shared optimistic forecasts, stating that the company's annual recurring revenue could reach between $500 billion and $1 trillion by the end of 2027.

SpaceX's success isn't solely attributed to its AI-driven SI division. The company is actively negotiating tower leases to establish at least 80,000 U.S. cell sites, aiming to expand its wireless mobile addressable market. This strategic move, along with intensifying competition in the telecom industry, has contributed to the bullish sentiment surrounding SpaceX. However, this positive news has also caused a slight decline in telecom stocks, highlighting the impact of the space industry's growth on related sectors.