SpaceX shares retreat as analysts question record-high valuation

KeyBanc assigned a "Sector Weight" rating to the stock, noting that while SpaceX remains a dominant force in the space industry, its potential for disruptive growth is already priced into the shares. Trading at approximately $165.63, the stock is experiencing a correction after a meteoric rise that briefly pushed Elon Musk’s net worth past the $1 trillion mark.

Analysts are increasingly divided on the company's trajectory. While Morningstar recently estimated a fair value of $63 per share, citing a disconnect between the current price and business fundamentals, other observers point to Starlink and artificial intelligence initiatives as long-term revenue drivers. This skepticism coincides with the company’s first senior unsecured bond offering, a move intended to pay down bridge financing and bolster liquidity. As SpaceX navigates its new status as a public entity, the market is shifting its focus from the excitement of the initial public offering to the practical demands of sustaining its massive valuation.