Wall Street Analyst Delivers Massive News for SpaceX Stock Investors!
Summary
Parkev analyzes the recent bullish rating from analyst Dan Ives, who set a $190 price target for SpaceX. Parkev observes that since the stock was trading around $170-$171, even the most optimistic analyst on Wall Street sees less than 20% upside, which Parkev interprets as a sign of an already stretched valuation. Parkev acknowledges that Starlink is a significant profit engine but points out that the core launch business remains a cost center that loses money despite its dominant market position.
A major catalyst discussed is the inclusion of SpaceX into the Nasdaq 100 index on July 7th, which Parkev notes could trigger $4.3 billion in automatic buying from passive funds. However, Parkev warns that this demand is likely to be offset by a staggering amount of supply as insiders and early investors look to diversify. Parkev mentions specific unlock periods including 3 billion shares in August, 7 billion in September/October, and another 10 billion in November.
Mentioned Stocks
Reasoning: Parkev believes the stock is extremely overvalued and wouldn't touch it 'with a 10-foot pole.' Parkev argues that the massive supply of shares hitting the market from insider unlocks (billions of shares starting in August) will more than offset the $4.3 billion in buying demand from the Nasdaq 100 inclusion. Parkev also notes that even the bullish $190 price target offers very limited upside from the current $171 price point.