SpaceX (SPCX) shares traded at approximately $153.06 during Wednesday’s early session, down about 0.27% amid broader market weakness. The stock remained well below its 52-week high of $225.64 but above its low of $104.83. SpaceX’s valuation was approximately $2.01 trillion.

Analysts have increased their focus on Space Exploration Technologies Corp.’s telecommunications strategy. During a Tuesday appearance on CNBC, Wells Fargo senior analyst Steven Cahall said SpaceX is not seeking to become the United States’ fourth major wireless carrier. In his view, the financial fundamentals do not support such an approach.

Instead, Cahall described the wireless initiative as one part of a broader technology ecosystem. His analysis indicates that SpaceX could combine its satellite network and spectrum assets with ground-based infrastructure, potentially including wireless towers and Wi-Fi offloading arrangements with cable companies. That structure could offer limited growth opportunities for cable and tower operators while creating additional competition for established telecommunications companies.

“Telcos just facing another competitor, a three-player market going to a much smaller fourth player, that’s still a net negative, for sure,” Cahall said.

Cahall does not expect SpaceX to challenge the current positions of T-Mobile, AT\u0026T or Verizon in the near term. His projections indicate that the company could initially target approximately 2% of U.S. wireless subscribers. A narrower strategy would require less spectrum, fewer towers and a smaller geographic footprint than a conventional nationwide wireless network.

Wall Street ratings and targets

Pivotal Research initiated coverage on Tuesday with a Strong Buy rating and a $220 price target. Its investment thesis is substantially based on SpaceX achieving operational scale through its reusable Starship platform, which the firm said could significantly expand launch capacity and accelerate Starlink growth.

Wells Fargo maintained its Overweight rating but reduced its price target from $215 to $212. Oppenheimer raised its target to $280 on September 2 while retaining an Outperform rating. Across 47 analysts, the consensus rating is Moderate Buy, with an average price target of $221.06. Individual targets range from $115 to $800.

Some analysts have taken a more negative view. DZ Bank began coverage with a Sell rating and a $100 price target. UBS sharply lowered its target to $75, while Seaport Research Partners downgraded the stock from Buy to Neutral in August.

Institutional activity and quarterly results

Virginia Retirement Systems acquired 50,000 SpaceX shares during the second quarter, valued at approximately $8.54 million. Hyperion Asset Management established a position worth roughly $201 million, and Wedbush Securities opened a position of approximately $5 million.

SpaceX reported second-quarter revenue of $7.81 billion, representing 91.9% year-over-year growth, or approximately 92%. Earnings per share were negative $0.09, beating the consensus estimate of negative $0.26 by $0.17. Analysts currently forecast full-year EPS of negative $0.15.

JPMorgan’s analysis indicates that a potential Nasdaq-100 rebalancing could generate approximately $15.5 billion in passive investment inflows for SPCX. At the same time, about 319 million additional shares became eligible for sale on September 9. The event marked the company’s third lockup expiration and is being monitored for potential supply pressure. Alongside those trading-related developments, the company’s operational scale through Starship and Starlink growth remains central to the thesis cited by Pivotal Research.

Source: Blockonomi