Key Morningstar Metrics for SpaceX
- : $62.00
- : ★
-
Morningstar Economic Moat Rating
: Narrow
-
Morningstar Uncertainty Rating
: Very High
SpaceX SPCX announced that it will exercise its option to acquire the artificial intelligence coding platform Cursor for $60 billion in equity.
Why it matters: SpaceX is aggressively investing in its AI capabilities, and acquiring Cursor should help it accelerate improvements to its large language model, Grok. Specifically, we see the acquisition as quickly bringing a team of personnel on board SpaceX to refine Grok for use in coding applications.
The bottom line: We see the acquisition as more or less value-neutral, with a sizable dilution of SpaceX equity counterbalanced by what we forecast to be an improved value proposition and revenue from enterprise customers. Our weighted-average fair value estimate for narrow-moat-rated SpaceX is $62 per share, down from $63.
- In our best-case valuation scenario, improved AI revenue boosts our valuation from $154 to $169 per share.
- We see SpaceX’s shares as overvalued, in that the trading price implies all the company’s projects will pay off according to our most optimistic scenario, which depends on rapid Starship reusability and compelling commercialization of orbital datacenters.
Editor’s Note: This analysis was originally published as a stock note by Morningstar Equity Research.
The author or authors do not own shares in any securities mentioned in this article.
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