SpaceX (SPCX) Stock: Shark Tank's Kevin O'Leary Targets $100-$110 Buy Zone

Key Highlights

Table of Contents

Kevin O’Leary declined his SpaceX IPO shares but now monitors the $100-$110 zone for potential entry after volatility subsides
Q2 revenue reached $7.81 billion, marking a 91.9% year-over-year surge and surpassing the $6.9 billion consensus
The company reported an adjusted loss per share of $0.09, significantly better than the anticipated $0.26 loss; Starlink user base expanded to 12 million
SPCX shares have plummeted over 25% from their June 12 IPO launch, with lockup periods expiring and intensifying downward pressure
Argus raised SPCX to Buy with a $160 target; consensus analyst price target stands at $227.31

Shares of SpaceX (SPCX) began Friday’s session at $114.92, trading significantly beneath its initial public offering peaks. The equity has plunged more than 25% since making its market debut on June 12, reaching a session low of $104.83, despite reporting impressive quarterly financials.

Space Exploration Technologies Corp., SPCX

Second-quarter revenue registered at $7.81 billion, representing a 91.9% increase compared to the same period last year and exceeding analyst expectations of $6.9 billion. The aerospace manufacturer reported an adjusted loss per share of only $0.09, substantially outperforming the consensus estimate calling for a $0.26 loss.

The Starlink satellite internet service achieved a milestone by doubling its subscriber count to 12 million users. Artificial intelligence-related revenue experienced an explosive rise of approximately 250%. Operating losses contracted dramatically to $143 million from the previous year’s $970 million.

Capital spending for the three-month period exceeded $18 billion, with $15.83 billion allocated specifically toward AI infrastructure development. This substantial expenditure level represents the primary concern for skeptical investors, particularly as the company continues reporting GAAP losses.

CEO Elon Musk indicated that SpaceX anticipates achieving a $100 billion annualized revenue run rate by year-end. Chief Financial Officer Bret Johnsen disclosed that $6.7 billion worth of cloud services agreements are scheduled to commence ramping up in October.

Wall Street Maintains Optimistic Outlook Despite Price Decline

Investment research firm Argus elevated SPCX from Hold to Buy on Friday, establishing a $160 price objective. This target represents approximately 39% potential appreciation from current trading levels.

The broader analyst community continues expressing confidence in the stock. Among 39 analysts tracking SPCX, three assign it a Strong Buy rating, 26 recommend Buy, eight suggest Hold, and two advise Sell. The consensus price target calculates to $227.31.

Deutsche Bank maintains the most aggressive forecast at $255. Citigroup projects a $200 valuation. Royal Bank of Canada reaffirmed its Outperform stance with a $225 objective. Moffett Nathanson takes a more conservative approach, rating the shares Neutral with a $131 target.

RBC analyst Ken Herbert characterized the Q2 performance as “positive.” Zacks strategist Brian Mulberry highlighted AI revenue generation as representing a “tremendous upside surprise.”

Shark Tank Investor Awaits Market Stabilization

Prominent investor Kevin O’Leary revealed he declined participating in the SpaceX IPO allocation, expressing concerns regarding immediate liquidity. He’s currently monitoring the $100 to $110 price range as a prospective accumulation zone.

“As the stock settles over the next 30 to 60 days, I’ll be watching closely, and I may start building a position,” O’Leary posted on X.

He maintains that SpaceX shouldn’t be evaluated using conventional metrics based on quarterly performance alone. His investment philosophy focuses on Musk’s potential to integrate SpaceX operations with Tesla, robotics initiatives, artificial intelligence capabilities, and self-driving technology into a comprehensive technological ecosystem.

Share Lockup Releases Continue Applying Downward Force

The initial lockup expiration event on Thursday released 911.5 million additional shares into the market, effectively more than doubling the publicly available float. While retail investor demand absorbed a portion of this new supply, additional phased unlocking events remain scheduled through December.

SpaceX and Tesla jointly announced an initial $16.8 billion capital commitment to the Terafab semiconductor manufacturing facility located in Texas. The aerospace company also revealed ambitious plans for space-based AI data processing centers and an expanded mobile telecommunications network.

SPCX has established a 52-week high of $225.64 and a 52-week low of $104.83. The company’s debt-to-equity ratio currently measures 0.83.

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