SpaceX's Stellar Ambitions Meet Earthly Realities: Analyst Targets Trigger Market Downturn

SpaceX shares have plummeted below their 135-dollar IPO price and continued declining toward 125 dollars, marking a stark reversal for the company behind the largest U.S. IPO in June. Despite analysts from 18 major banks setting bullish targets ranging from 190 to 800 dollars, the stock has shed nearly 60% of its peak value since hitting 211 dollars in early trading. The IPO, which raised 75 billion dollars and netted underwriters 500 million dollars in fees, has raised concerns over coordinated optimism among financial institutions. Key projections from firms like Goldman Sachs and Morgan Stanley centered around a median target of 225 dollars, implying a 3 trillion dollar valuation by late 2027—far exceeding SpaceX's current 2 trillion dollar market cap and its 105x revenue multiple on under 19 billion dollars in 2025 revenue. The disconnect underscores challenges in justifying such valuations for a company still operating at a loss, with critics arguing the targets lack fundamental grounding.