Could SpaceX be worth $12 trillion one day? Citi says Starship gets it a step closer.
The recent Starship launch helps SpaceX with a number of priorities that could help its stock reach $900 over the long run, an analyst says.
SpaceX's recent Starship launch has garnered significant attention, with Citi analysts weighing in on its potential impact on the company's valuation. According to Citi, the successful launch brings SpaceX closer to achieving its long-term goals, which could ultimately drive its stock price to $900. This valuation implies a staggering $12 trillion worth for the company, a figure that would make it one of the most valuable in the world.
To put this into perspective, the current largest companies in the world, such as Apple and Microsoft, have market capitalizations of around $2-3 trillion. A $12 trillion valuation for SpaceX would require significant growth in its core business areas, including satellite internet, space tourism, and government contracts. The Starship launch is a crucial step towards achieving this growth, as it demonstrates the company's capabilities in reusable rockets and could pave the way for future lunar and Mars missions.
As investors watch SpaceX's progress, they will be closely monitoring the company's ability to execute on its ambitious plans. Key areas to watch include the development of its satellite internet constellation, Starlink, and the securing of government contracts for its launch services. Additionally, any updates on the company's plans for lunar and Mars exploration, as well as its partnerships with other players in the space industry, will be closely scrutinized. With a potential valuation of $12 trillion on the table, investors will be eagerly awaiting SpaceX's next moves.
Originally reported by marketwatch.com. FundingWire adds analysis for finance & markets readers.