Oppenheimer raised its price target on SpaceX to $250 from $190 on Thursday, even as the newly public company’s shares continued to fall. The upgrade came just two days after the stock hit an all-time high, highlighting the growing divide on Wall Street between analysts who see SpaceX becoming a dominant artificial intelligence platform and skeptics who argue the company remains significantly overvalued.
Timothy Horan, an analyst at Oppenheimer, maintained his Outperform rating and pointed to SpaceX’s pending acquisition of AI coding company Cursor as a major catalyst for future growth. He argued that SpaceX now controls nearly every layer of the artificial intelligence ecosystem — from rocket launches and Starlink satellite connectivity to data centers, AI models, and end-user software.
The higher target is largely driven by expectations surrounding Cursor, whose parent company, Anysphere, agreed to be acquired by SpaceX in a $60 billion stock deal expected to close during the third quarter. Oppenheimer increased its fourth-quarter AI revenue forecast for SpaceX to $8.75 billion, up from $4.75 billion, citing rapid growth at Cursor, which the firm estimates is already generating approximately $4 billion in annual revenue.
Despite the bullish outlook, investors continued selling the stock. Shares fell as much as 7% Thursday, trading between $180 and $190, after reaching an all-time high of $225.64 earlier in the week. The decline followed a roughly 5% drop Wednesday, marking the first back-to-back losses since the company’s June 12 public debut.
Part of the selling pressure may be tied to the launch of options trading, which began Tuesday and gave investors their first practical opportunity to bet against the stock. Until then, limited public shares and strong demand had fueled a near-uninterrupted rally.
Wall Street remains sharply divided. On Thursday, Arete Research analyst Andrew Beale initiated coverage with a Buy rating and a $401 price target — the highest currently on the Street. Beale believes Starlink’s next-generation V3 satellites could unlock a massive suburban broadband market by delivering faster and more reliable internet service to underserved areas.
Earlier this week, Wolfe Research analyst Myles Walton also launched coverage with a Buy rating and a $175 target, citing growth opportunities tied to Starship, expanding Starlink adoption, and artificial intelligence initiatives connected to xAI.
Not everyone is convinced. Morningstar values the company at just $63 per share, while CFRA maintains a sell rating. The spread between the most bullish and bearish estimates now ranges from approximately $62 to $401, an unusually wide gap for a major public company.
Critics argue investors are paying for a vision rather than current financial performance. SpaceX reported a $4.9 billion loss in 2025 and another $4.28 billion loss in the first quarter of 2026, despite generating roughly $18.7 billion in revenue last year. Supporters counter that the company’s long-term earnings potential justifies today’s valuation.
Adding to the uncertainty, the major investment banks that led the IPO — including Goldman Sachs, Morgan Stanley, and JPMorgan — remain in their post-offering quiet period and have not yet issued official ratings.
With only about 4% of shares available to the public, trading has been highly volatile. As the stock begins entering more mutual funds and exchange-traded funds, increasing numbers of everyday investors are gaining exposure.
For now, the only thing Wall Street appears to agree on is that SpaceX is likely to remain one of the market’s most closely watched — and most volatile — stocks.
JBizNews Desk | Wall Street
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