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Editor’s Note: SpaceX fell 9% on Thursday and bounced more than 6% on Friday. My AI Profit Predictor is built for swings like that. It hunts for short-term trades with far more upside than downside – like a Meta trade that made 212% in 15 days.
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Here’s what it’s flagging now.
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Wall Street analysts don’t usually double their forecasts. They nudge them, a few percent at a time.
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Morgan Stanley just nearly doubled its SpaceX numbers. And it did it only four months after it started covering the stock.
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Company: Space Exploration Technologies Corp.
Ticker: SPCX
Recent price: $131.82 (midday Nov. 6)
Market cap: about $1.8 trillion
Morgan Stanley rating: Overweight, $300 price target
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Analyst Adam Jonas raised his 2027 revenue estimate by 93%, to $175 billion. His 2028 estimate jumped 84%, to $289 billion.
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The cash picture improved even more. Jonas now expects SpaceX to turn free cash flow positive in 2031. Back in July he had 2035. That’s four years sooner.
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He also slashed how much SpaceX will need to borrow, from about $670 billion to $390 billion.
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So, what changed? Mostly AI.
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SpaceX reported third-quarter revenue of $14.58 billion, up 161% from a year ago. Its AI segment brought in $7.56 billion, more than half the total. That’s now bigger than Starlink. And the company swung to a profit.
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Surprises like this are exactly what my AI trading algo hunts for. See what it’s flagging this week.
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Here’s my take on Musk’s company.
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SpaceX didn’t suddenly get better. It was always headed here. Analysts build their models off last quarter. Elon Musk guides off the factory floor. When he says where the company is going, people call it crazy talk. Then the results show up, and the estimates catch up.
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Now look at the valuation. Using his new numbers, Jonas puts SpaceX at 17.6 times 2028 earnings. Morgan Stanley’s estimate for the S&P 500 is 17.7 times.
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At today’s price, it’s closer to 16.5 times.
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That’s a company expected to grow earnings about 150% a year through 2030, priced cheaper than the index.
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So why is the stock down? It’s all about politics.
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Democrats swept the midterms on Tuesday, including the Texas governor’s race.
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SpaceX has a big Texas footprint for both rockets and data centers. Investors worry about tighter rules on AI and data center construction. The stock fell about 9% on Thursday and sits just below its $135 IPO price.
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The risks are real. SpaceX spent $19.6 billion on capital projects last quarter, mostly on AI infrastructure. These forecasts are aggressive, and they’re still just forecasts.
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But I think the market is looking at the next few weeks. Morgan Stanley is looking at the next two years.
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My guess is Jonas raises his numbers again after the fourth quarter. The stock bounced more than 6% on Friday. That could be the start of a big rebound heading into the end of the year.
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If you’d rather not wait for a rebound, there’s a faster way to trade swings like this.
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My AI Profit Predictor scans thousands of stocks a day and hands me the setups it rates highest – trades designed to play out in under 60 days. It made 229% on Freeport in 27 days.
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Simply go here to check it out.
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Ian Wyatt
Editor, IPO Watch
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