One Wall Street Analyst Sees 50% Upside in SpaceX, but I'm Still Not Buying the Stock

💡 Despite a bullish call from one analyst, the author remains skeptical about investing in SpaceX stock.

The Federal Reserve delivered a hawkish surprise on Wednesday, signaling that interest rate cuts remain further away than markets had hoped. Fed Chair Jerome Powell told reporters that the central bank needs "greater confidence" that inflation is sustainably declining before it will consider easing policy.

The 10-year Treasury yield surged to 4.8% in the aftermath, its highest level since October 2023. $TLT fell sharply as bond traders repriced the timing of the first cut from March to June.

SpaceX Earnings Outlook

SpaceX's latest earnings report exceeded expectations, with revenue growth of 50% year-over-year. The company's starlink satellite internet business continues to gain traction, with over 1 million subscribers worldwide.

Growth Prospects

Despite the strong earnings report, some analysts remain cautious about SpaceX's growth prospects. The company's reliance on government contracts is seen as a potential risk factor, and some investors are concerned about the high development costs associated with its starship program.

Competition and Market Share

SpaceX faces intense competition in the satellite internet market, with companies like OneWeb and Amazon's Kuiper Systems vying for market share. The company's market share has been growing rapidly, but it remains to be seen whether it can maintain its lead in the face of increasing competition.

What It Means for Investors