SpaceX (SPCX) shares have experienced a sharp correction, falling 32% from their all-time high of $225.64 reached on June 16 to around $153 as of June 27. The stock debuted at $135 in a record $85.7 billion IPO on June 12 and initially surged amid intense retail and passive fund demand.
The pullback comes despite the company signing massive AI compute deals worth nearly $28 billion annually with Anthropic, Alphabet, and Reflection AI. SpaceX reported 2025 revenue of $18.7 billion, a 33% increase driven mainly by Starlink, but it also posted a $4.94 billion net loss due to heavy spending on Starship and its xAI unit.
Analysts highlight extreme valuation metrics: even after the drop, SpaceX trades at over 100 times trailing 12-month sales. By comparison, neocloud peers like CoreWeave and Oracle trade at 4-5 times sales. Morningstar’s fair value estimate is roughly $780 billion, less than half the current market cap. The bull case hinges on Starlink’s cash generation and Elon Musk’s projection of massive future revenue, but caution persists as lockup expirations later this year could increase share supply.
