SpaceX: Beware Of Gravity

SpaceX (SPCX) remains overvalued at $133, with positive Q2 FY26 financials not justifying the current valuation; I maintain a sell rating. Connectivity (Starlink) drives profitability, posting $4.3B revenue and $1.66B operating income, while xAI's positive adj. EBITDA signals progress but the valuation is stretched. xAI's $15.8B capex and $14.1B in new Cloud Services Agreements highlight aggressive AI infrastructure investment and early customer traction. The upcoming $60B Cursor/Anysphere all-stock acquisition introduces dilution risk, best revisited after deal closure for a clearer valuation picture.

Beating the IPO curse is, statistically speaking, hard. This is what I argued when I covered SpaceX's IPO, wishing good luck to those who jumped in and bought the stock from $135 all the way up to $200. Since my first article, the stock is down 17%, and