TLDR
- SpaceX (SPCX) stock closed Friday at $134.27, up 9%, just under its $135 IPO price.
- The stock fell about 9% on Thursday after Democrats won the midterms.
- Jim Cramer likes the bull case but is not ready to buy.
- His main worry is more stock hitting the market as lockups expire within eight months.
- Wall Street holds a Strong Buy rating with an average target of $253.57.
SpaceX (SPCX) stock closed Friday at $134.27, up 8.62% on the day. That is just under its $135 IPO price from June.
Space Exploration Technologies Corp., SPCX
The bounce followed a drop of about 9% on Thursday. The stock is down about 22% over the past month and sits at its lowest level since August.
The selloff came after Democrats won the U.S. House, the Senate and the Texas governorship in the midterms. Investors now worry about tighter rules on data center construction and electricity use.
Elon Musk gave more than $445 million to Republican candidates and political groups this year. More than $200 million of that went to Texas, where SpaceX and Tesla are based.
What Jim Cramer Said on Mad Money
Jim Cramer discussed the stock on Friday’s Mad Money. He called the bull case “incredibly compelling,” yet he is keeping his wallet closed for now.
Third-quarter revenue rose 161% to $14.6 billion. Adjusted EBITDA jumped 306% to $8.8 billion.
AI services made up more than half of sales, with Google and Anthropic among the customers. Anthropic alone accounted for more than a third of last quarter’s sales.
Those customer contracts can be cancelled with 90 days’ notice. The stock trades at about 51 times trailing sales.
Spending is another concern. Fourth-quarter capital spending is projected at $35 billion to $40 billion, nearly double what analysts expected.
A $40 billion financing deal with Apollo may not cover every need. Cramer also pointed to talk of a Tesla merger, given Tesla’s much higher earnings multiple.
Politics add another layer. Texas governor-elect Gina Hinojosa has backed data center moratoriums, while Musk plans 10 gigawatts of compute online by the end of 2027.
Cramer’s Supply Worry
Cramer’s biggest concern is the supply of stock. By his math, only about one-third of the company’s stock trades freely right now.
More lockup periods are set to expire within eight months. He thinks that could hand buyers a lower entry point, even if the business keeps performing.
“I simply think that I’ll be able to get a better price for SpaceX as all that supply hits the market,” he said.
Before buying, he wants to watch Starship launches, Starlink subscriber growth and progress on Musk’s AI computing targets.
Wall Street is more upbeat. The stock holds a Strong Buy consensus, built from 28 Buys, 5 Holds and one Sell over the past three months.
The average 12-month price target is $253.57. That sits about 89% above Friday’s close.
