SpaceX: Why I Am Going Full Contrarian (Rating Upgrade)

Space Exploration Technologies has dropped nearly 50% from its peak, now trading below its IPO price, creating a contrarian buying opportunity. Starlink, SPCX’s satellite connectivity business, is highly profitable, driving most of the firm's EBITDA in 2025 and rapid subscriber growth expected to reach 13-14 million by year-end (my estimate). SPCX faces high execution risk from ambitious projects and a looming lock-up expiration in August, but current valuation and sentiment offer an improved risk/reward setup. With a 35% short interest ratio (float) and potential for strong Q2 earnings and bullish guidance, SPCX presents a possible short squeeze scenario for high-risk-tolerant investors.

Space Exploration Technologies (SPCX) has suffered a significant correction in its valuation since my last coverage directly after the company's market debut in June. Elon Musk's tech enterprise has, in fact, seen its share price decline significantly.