The SpaceX stock surge has caught the attention of many investors and analysts, including CNBC’s Jim Cramer. The initial public offering (IPO) of SpaceX on June 12 priced the stock at $135 a share, raising about $75 billion and making it the largest stock-market debut on record. The stock jumped roughly 19% on its first day and continued to climb in the following days, reaching a value near $2.7 trillion by June 16.
However, Jim Cramer expressed unease about the stock surge, likening SpaceX to a meme stock and warning about the rapid increase in value. He raised concerns about the speed at which the stock was climbing and the lack of selling pressure, indicating a potential risk of a market correction.
Despite the bullish sentiment from investors like Baron Capital and Cathie Wood’s ARK funds, analysts have raised valuation concerns. SpaceX reported revenue of $18.67 billion in 2025 against a net loss of $4.94 billion, leading to a high price-to-sales ratio. Moreover, the stock is trading above all published price targets on Wall Street, with Oppenheimer setting the highest target at $190.
While SpaceX has diversified beyond its rocket business, incorporating AI and cryptocurrency elements, the valuation remains a point of contention. The company’s ambitious revenue targets and acquisitions like Cursor maker Anysphere for $60 billion have raised questions about the stock’s current price.
The influx of retail investors in the IPO, holding a significant portion of the stock, adds to the potential supply overhang. Any slowdown in momentum could trigger selling pressure from early employees and venture backers, leading to a market correction.
In conclusion, while SpaceX continues to grow its business and innovate in the space and AI sectors, the stock’s rapid surge and high valuation have raised concerns among investors and analysts. The discrepancy between the stock price and published price targets highlights the need for caution and thorough analysis before investing in SpaceX.
