Cramer tells SpaceX investors to think in generations, not quarters

Jim Cramer urged investors considering SpaceX shares to look beyond the next quarter and hold the stock for the next generation, saying, "Put it away and give it to your kids." His comments came on CNBC's "Mad Money" on Aug. 25, after shares had fallen from a record $225.64 to a low of $104.83. SpaceX priced its initial public offering at $135 on June 12, which the source describes as the largest public offering in history. Shares closed at $137.95 on Aug. 25, up 2.19%, valuing the company at roughly $1.87 trillion. Cramer compared the investment to 100-year railroad bonds and said he would not recommend SpaceX if Musk were not involved. The company's second-quarter revenue rose 92% to $7.8 billion and EBITDA (earnings before interest, taxes, depreciation and amortization) increased 191% to $3.5 billion, but capital expenditures reached $18.4 billion and SpaceX posted a $541 million net loss. Morgan Stanley analyst Adam Jonas called the shares a "unique opportunity," maintained an Overweight rating and set a $300 price target. His view followed SpaceX's announcement of a $100 billion Starbase facility in Vermilion Parish, Louisiana, where construction is scheduled to begin next year and first launches are expected in 2029. Analysts remain divided: David Einhorn argued SpaceX is overvalued, while TipRanks data showed a Moderate Buy consensus based on 24 Buys, 5 Holds and 3 Sells, with an average 12-month target of $232.35. The investment case also rests on Starship progress, Starlink-led connectivity revenue and artificial-intelligence infrastructure, but the company faces substantial spending and a valuation that demands long-term confidence in Musk's ability to execute.

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