Despite receiving clearance from the FAA for its next launch, SpaceX's stock has slipped below the $140 mark. The downturn comes even after the agency concluded its review of the Starship Flight 12 mishap and approved the company's corrective measures.
Current trading data from Yahoo Finance indicates a 4% drop, with shares hovering around $139. This decline is significant, considering it places the stock near its IPO price of $135, well off the $150 mark seen following its recent public debut.
Over the last week, SpaceX's stock has depreciated by more than 12%, reflecting ongoing investor concerns despite positive developments. The FAA confirmed that there were no public injuries or damage during the earlier Flight 12 incident, which subsequently closed its investigation into the matter. With this review finalized, preparations for Starship Flight 13 can now move forward, provided all safety and licensing protocols are met.
Interestingly, even after the FAA's endorsement, there has been no rebound in share prices. Plans for the upcoming Starship test flight are reportedly set for as soon as this week, but the stock continues to linger around its recent lows. Additionally, SpaceX's inclusion in the Nasdaq-100 index was anticipated to boost demand from institutional investors, yet the stock price still decreased.
Despite this bearish trend, several Wall Street analysts remain optimistic about SpaceX's future. Firms like Morgan Stanley, Goldman Sachs, and Citi have issued buy ratings, maintaining a positive outlook even amidst the current market correction. Analysts from Raymond James have initiated coverage with a Strong Buy rating, setting a target price of $800, which suggests over 400% growth potential from current levels.
This material is for informational purposes only and should not be considered financial advice.
