SpaceX (SPCX), AI over Performance...Bernstein "Target Price $239"

▲ SpaceX (SPCX), US Stock/AI Generated Image

Ahead of the release of SpaceX (SPCX)'s first quarterly earnings, Wall Street is focusing on the artificial intelligence business and space data center strategy rather than the Q2 losses.

According to cryptocurrency specialized media Coingape on August 4 (local time), Bernstein SocGen Group maintained its "Outperform" rating for SpaceX and a target price of $239. The firm believes that plans for AI infrastructure expansion, rather than quarterly performance, will determine long-term corporate value.

Bernstein stated that a key concern for investors is whether enough satellites can be launched for a space-based data center network. It cited Starship's rapid reusability as the variable with the greatest impact on long-term corporate value. Securing semiconductors, regulatory approvals, and the sustainability of computing demand were also presented as major challenges.

SpaceX shares rose approximately 3% during trading on the 4th, surpassing $111. However, this is more than 50% lower than its 52-week high of $225.64 and close to its year-to-date low of $107.01. After its IPO on June 12, it reached a peak but has fallen about 33% in the past six months.

Wall Street expects SpaceX to report approximately $6.8 billion in revenue and a loss of $1.9 billion in the second quarter. There were also predictions that losses would significantly decrease from the previous quarter and that the company could approach breakeven within the year. Bernstein stated that it is unlikely that investment decisions would change based solely on these earnings.

The rocket launch business accounts for approximately one-fifth of total revenue. Starlink is the largest revenue-generating and only consistently profitable segment among SpaceX's businesses. The artificial intelligence business is expected to grow into the largest revenue source based on increasing computing demand. SpaceX has also secured an infrastructure contract with Anthropic, reportedly worth approximately $1.25 billion per month.

[Key Summary of Article]

-Bernstein maintained an "Outperform" rating for SpaceX and a target price of $239.

-Wall Street estimates SpaceX's Q2 revenue at approximately $6.8 billion and a loss of $1.9 billion.

-Bernstein evaluated AI infrastructure and satellite launch capabilities as key to long-term corporate value, more so than quarterly performance.

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