On Tuesday, the underwriters for SpaceX (SPCX) initiated coverage of the stock. Unsurprisingly, Morgan Stanley (MS) and Goldman Sachs (GS) set lofty price targets.
Amid the flurry of bullish analyses, the buy rating price targets ranged from $205 from Goldman and $300 from Morgan Stanley. Adam Jonas from MS wrote that SpaceX would gain from increased demand for AI services. In the short-term, neocloud deals, or renting out unused, surplus AI servers, would drive the business. In a longer-term business model, Jonas believed that end-to-end AI services would account for more revenue.
Stock markets are unlikely to reflect on SpaceX’s 24-year history of losses. But with xAI (X and Grok) accounting for 85% of the business, they cannot overlook xAI’s market share loss. According to analysis from Apptopia, Grok’s market share fell by 28% in the U.S. since April. Meta Platforms’ (META) AI is now in fourth place.
Oil prices rose by 5% after Iran attacked two tankers, striking them with projectiles. In response, the U.S. revoked its authorization of Iran oil sales.
After stock markets rallied on the MOU, the broken agreement might send Nasdaq (QQQ) lower. The tech-heavy index closed at lower highs in recent weeks, forming a bearish pattern since early June. Investors dumped Micron (MU), AMD (AMD), Intel (INTC), and Tesla (TSLA). They bought META stock, Exxon Mobil (XOM), and Chevron (CVX).
