SpaceX gains 6% in premarket after record debut

SpaceX experienced a notable rise in its stock price during premarket trading on Monday, reflecting the excitement from its record-setting debut on the Nasdaq last week. This initial public offering (IPO) has now become the largest in history, propelling shares approximately 6% higher at the onset of premarket activity. Last Friday, SpaceX's stock surged by 19%, closing at $161 after an opening price of $135 per share. This impressive performance has resulted in a market capitalization exceeding $2 trillion for the company, which is renowned for its Starlink satellite internet service and innovative reusable rocket fleet. In February, Elon Musk integrated SpaceX with his artificial intelligence venture, xAI. Despite the IPO success, the company reported a staggering loss of nearly $5 billion in 2025, raising questions about the sustainability of its high valuation. CFRA initiated coverage of SpaceX on Friday with a cautious "sell" rating, setting a 12-month price target of $115—a significant 29% decrease from the stock's Friday closing price. They cited concerns regarding SpaceX's ambitious growth strategy and high capital intensity as reasons for their outlook. In the first quarter, SpaceX's capital expenditures reached $10.1 billion, a sharp increase from $4.1 billion during the same period last year, with a considerable portion allocated to artificial intelligence development. Morningstar analyst Nicolas Owens recently indicated that the firm's valuation for SpaceX stands at $63 per share, characterizing the stock as "overvalued." However, not all analysts share this perspective. New Street Research has initiated coverage with a more optimistic price target of $165 for the stock, indicating a more bullish outlook on SpaceX's future. This dynamic situation continues to unfold, and updates are anticipated as the market reacts to these developments.