SpaceX shares remained under pressure on Wednesday, closing below their initial public trading price for a second consecutive session even as Wall Street analysts issued largely bullish ratings following the company’s rapid inclusion in the Nasdaq-100 index.
The stock ended the day at $148, remaining below the $150 opening price recorded when the aerospace and defense company began trading publicly. The weakness comes after a volatile first month on the market that saw shares surge to record highs before retreating amid profit-taking.
Despite the recent pullback, analysts remain broadly optimistic about SpaceX’s long-term prospects, citing its leadership in reusable rockets, satellite communications and emerging artificial intelligence initiatives as key drivers of future growth.
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SpaceX officially joined the Nasdaq-100 on Tuesday, less than a month after making its stock market debut on June 12. The unusually swift addition was made possible by revised Nasdaq rules that allow newly listed companies meeting specific eligibility requirements to enter the benchmark more quickly than under previous regulations.
The inclusion has important implications for investor demand. Because the Nasdaq-100 is tracked by numerous index funds and exchange-traded funds (ETFs), portfolio managers who replicate the benchmark were required to purchase SpaceX shares to align their holdings with the updated index composition.
Such passive buying often provides additional support for newly included stocks by generating automatic demand from institutional investors.
Record-breaking IPO
SpaceX completed one of the largest public offerings in U.S. market history. The company ultimately raised $85.7 billion after underwriters exercised the “greenshoe” overallotment option, a mechanism that allows additional shares to be sold when investor demand exceeds the original offering size.
Initially, SpaceX offered 555.6 million shares at $135 per share.
Strong investor appetite during the offering enabled underwriters to expand the transaction through the overallotment provision, increasing the total amount raised and cementing the IPO as one of the biggest ever completed.
The enthusiasm continued immediately after trading began. Shares climbed rapidly during the first few sessions, reaching a closing high of $201.80 on June 16, reflecting strong optimism about the company’s long-term growth prospects.
Since then, however, the stock has retreated as investors locked in profits following the initial surge.
Wall Street Turns Overwhelmingly Positive
Even as the shares have cooled from their post-IPO highs, major investment banks have initiated research coverage with overwhelmingly positive recommendations.
Morgan Stanley began coverage with an “Overweight” rating and assigned a $300 price target, implying substantial upside from current levels.
Bernstein initiated coverage with an “Outperform” recommendation and a $239 target price.
RBC Capital Markets also launched coverage with an “Outperform” rating and a $225 price target.
Meanwhile, UBS assigned the stock a “Buy” rating with a 12-month target of $210 per share.
The consensus among bullish analysts is that SpaceX enjoys competitive advantages that few rivals can replicate.
Foremost among those strengths is its dominance in reusable rocket technology. The company’s ability to repeatedly launch, recover, and reuse rockets has significantly reduced launch costs while allowing it to secure a leading position in the rapidly expanding commercial space industry.
Analysts also highlighted Starlink, SpaceX’s global satellite internet network, as another major growth engine. With millions of subscribers already using the service across dozens of countries, Starlink has become one of the world’s largest satellite broadband providers and continues expanding its coverage and customer base.
Wall Street expects continued growth in both launch services and satellite communications to support stronger revenue and improved profit margins over the coming years.
Beyond its existing businesses, analysts see SpaceX as a potential player in artificial intelligence.
Several research firms suggested the company could eventually develop AI software products ranging from agentic coding assistants to advanced large language models capable of competing with products such as Anthropic’s Claude and OpenAI’s Codex.
While SpaceX has not formally announced plans to enter the AI software market, some analysts have noted that the company’s expertise in computing infrastructure, satellite communications and large-scale engineering could provide a foundation for future AI-related services.
Another area generating investor interest is the possibility of orbital data centers. Such facilities, if technically and economically viable, could eventually support specialized computing workloads in space, creating entirely new markets for cloud infrastructure and AI processing.
Although those concepts remain largely speculative, they contribute to the premium growth expectations many investors have attached to SpaceX.
Some Remain Doubtful
Despite the overwhelmingly positive tone from Wall Street, some analysts remain cautious. MoffettNathanson initiated coverage with a Neutral rating, suggesting that much of SpaceX’s long-term potential may already be reflected in its valuation.
Research firm CFRA adopted an even more conservative stance, recommending that investors sell the shares.
The more cautious outlook reflects concerns that expectations surrounding SpaceX’s future businesses, including AI and other emerging technologies, may have become overly optimistic following the company’s record-breaking public debut.