Is SpaceX (SPCX) Stock a Buy Before Earnings? HSBC Says Not Yet

TLDR

• SpaceX stock slid 0.5% to $114.60 Monday after completing a successful 13th Starship test flight Friday
• SPCX has dropped roughly 38% over three consecutive weeks and sits below its $135 IPO price
• HSBC initiated coverage with a Hold rating and $115 price target, applying a 2x “innovation premium” and still landing below the current price
• HSBC expects SpaceX to burn through ~$106 billion in cash before free cash flow turns positive around 2030
• Two key August dates loom: Q1 earnings on Aug. 4 and a major lock-up expiry on Aug. 6 that could more than double the tradable float

SpaceX (SPCX) stock slid 0.5% to $114.60 on Monday morning, even after the company completed a near-flawless 13th Starship test flight on Friday evening. The broader market was up — S&P 500 futures rose 0.9% and Dow futures climbed 1.1% — making the move stand out.

Space Exploration Technologies Corp., SPCX

The stock has now fallen for three straight weeks, losing roughly 38% over that stretch. It sits below its $135 IPO price from June and more than 40% below its record closing high of $201.80.

… Continue reading the full article at the original source below.