SpaceX stock rebound, Digi Mart USA News: Space Exploration Technologies (NASDAQ: SPCX) stock is under pressure. After a sharp correction in recent weeks, shares of the space company are now 22% below their IPO price set in June.
The slide mirrors what is happening across other AI stocks. The Global X Artificial Intelligence & Technology ETF (NASDAQ: AIQ), for example, has shed more than 15% of its value over the past 30 days.
The source notes that SpaceX’s long-term growth opportunities remain intact. However, for shares to rebound, at least one of two things needs to happen.
The first is a return of enthusiasm for AI stocks, since AI makes up the vast majority of the company’s long-term growth potential. According to the article, $26.5 trillion of the company’s claimed $28.5 trillion total addressable market relies exclusively on AI.
Research from Barclays is quoted as saying, “AI demand remains strong.” The source says the market is questioning funding, as hyperscalers keep lifting capital expenditures while free cash flow evaporates. SpaceX is in a weaker position on this point, because it is currently unprofitable and must continue relying on outside capital to grow and survive.
Many of its big tech competitors have mature businesses with strong cash flow.
The article argues that if sentiment toward AI stocks continues to deteriorate, SpaceX could remain under pressure. It also says the company’s current valuation is difficult to justify based on launch services and Starlink potential alone, and that SpaceX must execute on its AI roadmap to justify a valuation above $1 trillion.
To achieve its claimed AI potential, the source says SpaceX will likely need to pursue several speculative but high-potential opportunities. These include commercializing its Starship rocket, which would be the tallest, largest, and most powerful rocket ever built, scaling Starlink and orbital data centers, which face steep physics hurdles, and scaling terrestrial data center infrastructure while selling that compute capacity to customers.
The article concludes that these ventures require substantial capital, and access to capital is exactly what the market is concerned about now. While SpaceX stock could eventually rebound on internal merits, the source argues that realizing those catalysts is becoming more difficult in today’s market.
