XSPC
Cheap? Depends on your calculator
Morgan Stanley’s Adam Jonas basically told investors to stop staring at SpaceX’s headline valuation like it’s a horror movie. He reiterated an Overweight rating and slapped a $300 price target on the stock, arguing that once you adjust for growth, SpaceX looks a lot less expensive than the multiple freak-out suggests.
That’s the kind of analyst note that makes value investors clutch their pearls and growth investors nod like they already knew. Jonas said the market is using the wrong yardstick, and that the company’s space-and-connectivity businesses may already be mostly priced in.
Starlink is doing the heavy lifting
The other big headline: Starlink ended Q2 with 12 million subscribers, up from 10.3 million in Q1 and roughly double the year-ago level. Average monthly revenue per user held at $66, which is the financial version of ‘nice, steady, keep doing that.’
Why should you care?
- Starlink now makes up about 60% of SpaceX revenue
- It’s still the company’s only profitable business
- More subscribers means more cash flow, and more cash flow means SpaceX gets more ammo for the stuff investors really obsess over: Starship, AI leasing, and whatever else Elon throws at the whiteboard
Two analysts, one bull case
TD Cowen also recently jumped in with a Buy and a $200 target, saying SpaceX’s AI computing leasing business could become a monster. In other words, the Street is starting to treat SpaceX less like a rocket company and more like a weirdly diversified infrastructure bet with a side of space internet.
Big picture: when analysts start arguing over whether a company is cheap on a growth-adjusted basis, it usually means the stock has entered the “is this genius or nonsense?” zone. SpaceX appears to be living there comfortably.