SpaceX has soared since its IPO, briefly overtaking Amazon to become the fourth-most valuable company on Wall Street, according to Inc. But the celebration may be short-lived: analysts are sounding the alarm as the next test arrives with earnings season and the expiration of insider lockup periods.
Rocket Lab, a key competitor, is surging and drawing bulls back into the space sector, CNBC reports. Meanwhile, a slew of Wall Street analysts initiated coverage of Applied Aerospace & Defense—a SpaceX supplier—with outperform- or buy-equivalent ratings, signaling confidence in the supply chain.
On the telecom front, Charter Communications shares are soaring following reports of talks with SpaceX. MarketWatch describes the potential tie-up as a 'frenemies' arrangement, while BNP Paribas argues that the wireless threat from Starlink may be overstated. Rival telecom stocks are falling as Starlink explores options to enter the wireless market.
The counter_argument: Some analysts caution that SpaceX's current valuation may be unsustainably high, especially once insider selling begins and earnings fail to meet elevated expectations. The Motley Fool suggests investors consider alternatives like Rocket Lab, RTX, or Palantir for exposure to space, defense, and military AI without the direct risk.