disclosed<\/a> it would acquire Cursor for $60 billion in stock, representing roughly 3.4% dilution\u2014meaning investor stakes will represent a smaller percentage of the company\u2014of SpaceX\u2019s $1.77 trillion IPO valuation.<\/p>\nMorningstar analysts lowered its fair value estimate for SpaceX to $62 from $63, citing a \u201csizable dilution\u201d of SpaceX shares following the Cursor deal, noting a best-case scenario would price shares at $169 should its AI revenue improve.<\/p>\n
It\u2019s a cooling from the record-setting demand since its debut: Investors purchased $369.8 million in SpaceX shares over its first three sessions, accounting for more than quadruple the funds poured into Nvidia ($88.2 million) over the same period, according to a Vanda Research note on Wednesday.<\/p>\n
Option trading for SpaceX also debuted on Tuesday, allowing investors to bet against the stock, and Susquehanna analyst Chris Murphy wrote in a note that there was a 15% chance the stock would lose half its value over the next three months because of option trades.<\/p>\n
contra<\/p>\n
Oppenheimer analyst Timothy Horan applauded SpaceX\u2019s deal for Cursor in a note on Thursday, claiming the acquisition could boost its shares to $250 by the end of the year, up from an earlier projection of $190. \u201cThis deal is beneficial for both sides,\u201d Horan wrote, adding that Cursor will have access to SpaceX\u2019s computing power, while SpaceX gets Cursor\u2019s AI technology, engineering talent, training data and user base. <\/p>\n
forbes valuation<\/p>\n
A further decline in SpaceX shares reduced CEO Elon Musk\u2019s net worth by $67.8 billion to about $1.2 trillion, according to Forbes\u2019 estimates. His fortune hit a record high above $1.4 trillion amid SpaceX\u2019s three-day winning streak, and Musk still ranks well above Google cofounder Larry Page ($300.8 billion) as the richest person in the world. <\/p>\n
key background<\/p>\n
SpaceX shares skyrocketed 50% above its $135 IPO price through its three-day streak, boosted by record-setting investor demand. Morningstar analysts have warned investors about trading SpaceX shares since before its IPO, arguing the company is \u201csignificantly overvalued\u201d and that its market value is tied to technologies it claims are \u201cnovel and untested.\u201d PitchBook\u2019s Franco Granda wrote in March that SpaceX may trade similarly to Tesla \u201con steroids,\u201d as trading in Musk\u2019s automaker is often volatile among other mega-cap stocks. Other analysts have claimed SpaceX has emerged as the latest meme stock, including Swissquote analyst Ipek Ozkardeskaya, who said investors are buying SpaceX \u201cin the expectation that others will buy too and push the price higher.\u201d Ozkardeskaya argued SpaceX is \u201cburning cash,\u201d as its Starlink business has been unable to counter heavy spending on space exploration.<\/p>\n
further readingForbesSpaceX Shares Drop 6% In First Decline Since Historic IPOBy Ty Roush<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"Topline A selloff in SpaceX shares extended on Thursday, erasing much of the rocket company\u2019s gains since its…\n","protected":false},"author":2,"featured_media":1035291,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":"","_share_on_mastodon":"0"},"categories":[6],"tags":[51,24916,295,124535,285513,1603,282789,285514,16,15],"class_list":["post-1035290","post","type-post","status-publish","format-standard","has-post-thumbnail","category-business","tag-business","tag-cursor","tag-elon-musk","tag-space-x","tag-space-x-shares","tag-spacex","tag-spacex-shares","tag-spacex-stock","tag-uk","tag-united-kingdom"],"share_on_mastodon":{"url":"https:\/\/pubeurope.com\/@uk\/116772994277720982","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts\/1035290","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/comments?post=1035290"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts\/1035290\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/media\/1035291"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/media?parent=1035290"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/categories?post=1035290"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/tags?post=1035290"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}