By Niket Nishant<\/p>\n
June 2 (Reuters) – Morningstar analysts pegged SpaceX’s valuation at $780 billion, less than half of what the Elon Musk-led company is \u200creportedly targeting in its initial public offering, ahead of a planned \u200croadshow this week.<\/p>\n
Prospects for the company’s artificial intelligence business, which includes xAI and social media platform \u200bX, were uncertain given unclear economics and competition from OpenAI and Anthropic, the research firm said.<\/p>\n
“We don’t see Grok as one of the leading AI labs today,” said Morningstar equity analyst Nicolas Owens, referring to the chatbot developed by xAI.<\/p>\n
Owens also \u200cwarned that the future \u2060promise of SpaceX’s AI segment relies on untested technology such as orbital data centers. Starlink, the satellite broadband business, also faces \u2060technological hurdles, many of which may be outside the company’s control, he said.<\/p>\n
“We think the company has been significantly overvalued and investors will have opportunities to buy \u200bthe stock \u200bat more attractive levels after the \u200bIPO,” Owens said.<\/p>\n
The warning stands out \u200cas a rare contrarian view at a time when enthusiasm for the IPO has been high.<\/p>\n
SpaceX is aiming to launch the roadshow on June 4, with the stock scheduled to debut on the Nasdaq on June 12, Reuters has reported.<\/p>\n
Morningstar said the stock could ascend in the near term, given the \u200clow float and the strong cadre of major \u200binvestment banks underwriting the IPO.<\/p>\n
Goldman Sachs, Morgan Stanley, \u200bBofA Securities, Citigroup and J.P. \u200bMorgan are among the underwriters for SpaceX’s share sale.<\/p>\n
However, “long-term investors \u200ceager to participate in SpaceX’s future \u200bendeavors and potential success \u200bwill have opportunities to do so with a greater margin of safety than the initial offering is likely to provide,” Owens said.<\/p>\n
SpaceX is \u200btargeting a valuation of $1.75 \u200ctrillion in the IPO, Reuters has reported. The company was last valued \u200bat $1.53 trillion on secondary trading platform Forge Global.<\/p>\n
(Reporting by Niket \u200bNishant in Bengaluru; Editing by Sriraj Kalluvila)<\/p>\n","protected":false},"excerpt":{"rendered":"By Niket Nishant June 2 (Reuters) – Morningstar analysts pegged SpaceX’s valuation at $780 billion, less than half…\n","protected":false},"author":2,"featured_media":710264,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[23],"tags":[257879,49,48,163,57470,257878,66,15814,306,6888],"class_list":["post-710263","post","type-post","status-publish","format-standard","has-post-thumbnail","category-space","tag-artificial-intelligence-business","tag-ca","tag-canada","tag-initial-public-offering","tag-morningstar","tag-nicolas-owens","tag-science","tag-social-media-platform","tag-space","tag-spacex"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts\/710263","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/comments?post=710263"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts\/710263\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/media\/710264"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/media?parent=710263"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/categories?post=710263"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/tags?post=710263"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}