Cathie Wood Buys the Dip in Beaten-Down SpaceX Stock. Analysts See 86% Upside Ahead

The shares currently trade at roughly 95 times trailing sales, well above many leading AI companies. Nvidia (NVDA) trades at around 24 times sales, while several other mega-cap technology companies command substantially lower revenue multiples.

The valuation becomes more reasonable if analysts’ growth forecasts prove accurate. Consensus estimates call for approximately 95% revenue growth this year, bringing the forward price-to-sales ratio closer to 34 times.

SpaceX Is Spending Heavily to Build More Than a Rocket Business

Although SpaceX remains best known for reusable rockets, the company is rapidly evolving into a much broader technology platform.

The company operates roughly 9,600 Starlink satellites, serving approximately 10.3 million subscribers across 164 countries. Earlier this year, SpaceX also completed its all-stock acquisition of xAI, adding Elon Musk’s artificial intelligence business to its portfolio and significantly expanding its AI ambitions.

The company continues investing aggressively across multiple businesses. It recently completed its 13th Starship test flight, deploying 20 next-generation Starlink V3 satellites designed to deliver gigabit internet speeds while gathering additional flight and landing data.

SpaceX is also expanding its government relationships. NASA recently selected Starlink’s laser communications technology for the Artemis III lunar mission, further strengthening the company’s position in both commercial space and government contracts.

The Latest Results Show Strong Growth but Massive Spending

SpaceX’s revenue in the first quarter of 2026 rose roughly 15% year-over-year (YoY) to $4.69 billion. However, the company reported a net loss of $4.28 billion, with an adjusted loss of approximately $1.27 per share, as AI infrastructure investments and Starship development continued to weigh heavily on profitability.

The company also generated negative free cash flow of $9.06 billion after spending approximately $10.1 billion on capital expenditures during the quarter.

One positive is the balance sheet. Following its IPO, SpaceX’s cash position expanded to roughly $100.8 billion, providing substantial financial flexibility to continue funding its long-term AI and space initiatives.

Wall Street currently expects second-quarter revenue of around $6.8 billion, with full-year revenue projected between $22 billion and $24 billion, implying meaningful acceleration during the second half of the year.

What Does Wall Street Think About SPCX Stock?

Despite the recent decline, Wall Street remains very optimistic on SPCX stock.

According to Barchart’s data, the 33 analysts covering SPCX maintain a consensus “Moderate Buy” rating with an average price target of $234.45, implying about 86% upside from current levels.

Morgan Stanley rates the shares “Overweight” with a $300 price target, citing the company’s AI platform and expanding enterprise opportunities. Goldman Sachs also carries a “Buy” rating with a $205 target, while Needham recently lifted its target to $250 after expressing greater confidence in execution.

Raymond James remains among the biggest bulls on Wall Street with an $800 price target, reflecting its belief that SpaceX could become one of the defining AI infrastructure companies of the next decade.

The large bull and bear spread shows how controversial SpaceX is on the stock market. The selling spell has clearly not deterred disclosure industry leader Cathie Wood, as she sees it as a buying opportunity. To what extent the wider market will agree will largely depend on when the company can begin to profit from its significant investment into AI and infrastructure.

On the date of publication, Nauman Khan did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Barchart.com