Wedbush Initiates Outperform Rating on Space Exploration Technologies (NASDAQ: SPCX) Amidst AI Expansion

• Investment firm Wedbush initiated an Outperform rating for Space Exploration Technologies (NASDAQ: SPCX), with the stock trading at $170.86 per share.
• The company is aggressively expanding its AI technology business, including a $60 billion acquisition and a $6.3 billion contract.
• Despite not yet being profitable, Space Exploration Technologies holds a $2.23 trillion market capitalization, reflecting strong investor expectations for future growth.

On June 30, 2026, the investment firm Wedbush initiated coverage on Space Exploration Technologies (NASDAQ: SPCX), assigning it an Outperform rating. This investment rating suggests Wedbush believes the stock will perform better than the overall market. At the time of the announcement, Space Exploration Technologies was trading at $170.86 per share, reflecting a daily increase of 4.15%.

Space Exploration Technologies is a company involved in space launches, its Starlink satellite internet service, and a growing artificial intelligence (AI) business. Following its recent Initial Public Offering (IPO) at $135.00 per share, the stock has been volatile, reaching a high of $225.64 before settling near its current price.

The positive market outlook from Wedbush aligns with the company's significant expansion into AI. Space Exploration Technologies recently made a $60 billion purchase of the AI coding company Cursor to improve its Grok AI software. It also secured a new $6.3 billion contract with Reflection AI, as highlighted by The Motley Fool, showing its aggressive growth strategy.

Despite this growth, Space Exploration Technologies is not yet profitable, as losses from its space and AI divisions offset profits from Starlink. The company's current market capitalization is approximately $2.23 trillion. This stock valuation is 116 times its 2025 revenue of $18.70 billion, a high multiple that reflects strong investor expectations for future growth.

Future events could influence the stock's price, such as its upcoming inclusion in the Nasdaq-100 index. However, a report from 24/7 Wall Street notes that Space Exploration Technologies is "bleeding cash" and its AI division lags competitors. The report suggests strong investor enthusiasm, similar to that for Tesla (NASDAQ: TSLA), may be a key factor supporting its high valuation.