Morgan Stanley Says $300. Michael Burry Says Overvalued. Here's Who Is Right About SpaceX Stock.
Experts are split on where SpaceX stock will go next.
SpaceX's stock price fluctuates dramatically, with a current value roughly 17% lower than its initial closing price in early June. This volatility leaves experts and analysts divided on its valuation. While 29 of 35 analysts covering the stock have a buy or hold rating, one has a sell rating, and the consensus price target is around $250, suggesting an 86% upside potential.
Morgan Stanley maintains a more bullish outlook, with a price target of $300, implying a 124% upside. However, legendary investor Michael Burry argues that the company is overvalued, stating that SpaceX's IPO prospectus suggests it is not worth $1 trillion, let alone $2 trillion. Burry is particularly skeptical about SpaceX's potential to monetize AI, which he believes constitutes less than 10% of the company's total addressable market.
Morgan Stanley, on the other hand, views SpaceX as a platform that can integrate various segments, including real estate in orbit, global connectivity, and compute capacity, into one infrastructure stack. The bank believes the synergistic potential of these segments, combined with access to new capital, holds the greatest growth potential for SpaceX.
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