TLDR
- SpaceX completed its $60 billion acquisition of Cursor, an AI software development platform, ahead of schedule
- SPCX stock fell 2% in premarket trading to $143.26 after the deal closed on August 14
- Deutsche Bank’s Edison Yu raised his 2027 revenue forecast for SpaceX from $97 billion to $115 billion
- The deal gives SpaceX a vertically integrated AI stack: data centers, Grok models, and now Cursor applications
- Wall Street holds a Moderate Buy consensus on SPCX with an average price target of $232.35
SpaceX stock slipped about 2% in premarket trading Tuesday to $143.26 after the company confirmed it had closed its $60 billion purchase of Cursor ahead of schedule.
Space Exploration Technologies Corp., SPCX
The stock had rallied 4.5% on Monday, partly on news that the deal had finalized on August 14, earlier than most analysts expected.
Cursor is an AI-powered software development tool. Users can describe what they want in plain language and Cursor builds it, iterating through natural language commands.
The platform also includes AI agents that autonomously write and correct code. It competes directly with Microsoft’s GitHub Copilot, Anthropic’s Claude, and OpenAI’s Codex.
Deutsche Bank analyst Edison Yu, a four-star analyst, outlined three key benefits of the acquisition in a Monday report.
First, Cursor gives SpaceX an immediate path to earn revenue from its AI business. Cursor already counts many large companies among its paying customers.
Second, the deal brings specialized AI coding talent directly in-house.
Third, it completes a vertically integrated AI stack. SpaceX now controls the full chain: data center computing power, the Grok frontier AI model, and Cursor as an AI application layer.
Analysts Lift Revenue Forecasts
Following the deal’s close, Yu raised his 2027 revenue estimate for SpaceX from $97 billion to $115 billion. He kept his Buy rating and $235 price target in place.
Across Wall Street, the average 2027 revenue estimate tracked by FactSet sits at around $99 billion. That compares to roughly $44 billion expected for 2026.
SpaceX currently rents its AI computing capacity to Anthropic and Google. The Cursor acquisition positions SpaceX to sell its own AI products directly, rather than simply hosting rivals.
Insider Unlock Window Adds Pressure
The premarket dip also came as investors tracked an upcoming supply event. Trading restrictions on roughly 319 million early-investor and insider shares are set to lift on August 20.
About 4.9 billion total shares are scheduled to unlock by year-end, a calendar that investors are watching closely.
Coming into Tuesday, SPCX was up 8% from its $135 IPO price, but still down 35% from its record high of $225.64.
SpaceX ended the second quarter with 1.4 gigawatts of AI compute capacity installed. CEO Elon Musk has set a target of 10 gigawatts by end of 2027.
The company also plans to launch AI computing systems into orbit via its Starship rocket by 2028.
Wall Street’s consensus on SPCX is Moderate Buy, based on 24 Buy ratings, five Holds, and two Sells since the IPO. The average price target stands at $232.35, implying upside of around 59% from current levels.
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