IPO

The Week

SpaceX gained 1% this week to close at $147.49, while the S&P 500 fell 0.47%, leaving the stock about 1.47 percentage points ahead of the benchmark. The week’s 15.39% amplitude tells a swing higher and back: Monday and Tuesday drifted between $143 and $151, then Wednesday gapped up to a peak of $166.18 before settling at $159.31 on 221 million shares. Thursday gave back nearly all of that move, touching $143.21 intraday, and Friday closed at $147.49, below the 20-day moving average of $155.02. Weekly turnover reached 719.7 million shares, with average daily volume running about 73.6% above its 60-day median.

Key Events

Mobile wireless expansion and its ripple across telecom names shaped the week. Early Friday, reports said SpaceX was in talks with Crown Castle and American Tower to access cell sites, aiming to connect 80,000 base stations. The company confirmed it was ‘talking to all parties’, and Crown Castle jumped as much as 10% on the day, dragging the communication services sector lower and pushing the IYZ telecom ETF to its longest losing streak against the S&P 500 on record.

That same day, SpaceX booked a $561 million investment gain from its stake in Elon Musk’s Boring Co., while third-quarter sales grew 161% and Starlink users nearly doubled. Yet free cash flow burned more than $9.9 billion in the quarter, raising questions about how long its $85.7 billion IPO war chest can last. Merger chatter with Tesla resurfaced, with Musk calling the idea a ‘good idea’ even as antitrust concerns were widely noted; separately, 328 million shares are set to unlock. The week’s one material filing was an S-8 on Friday.

The rating picture shifted: Phillip lifted its target to $250 from $75, Roth Capital said the 80,000-cell-site push favours names like ASTS, Ericsson and Nokia, and a former bear turned positive on the firm’s AI progress, citing 70% upside.

The Week Ahead

The macro calendar leans US data. Tuesday brings durable goods orders, FHFA house prices, Case Shiller 20-city home prices, new home sales and consumer confidence, while Monday has the Dallas Fed manufacturing activity index. These will feed into rates and growth expectations. On the company side, progress on the base-station talks, follow-through from the 80,000-site plan, and the actual liquidity impact of the 328 million share unlock are the threads to keep tracking.

In Short

SpaceX moved in two directions this week: mobile-network expansion and a 161% sales jump provided upside, but the $9.9 billion quarterly free cash flow burn, a negative P/E, an 11x price-to-book and heavy weekly volume with elevated large-lot buying in the latest session show how sensitive the market remains to the company’s high-cash-burn growth model. The tension now sits between execution on the wireless buildout and the timeline implied by that cash consumption.

This article is generated by LongbridgeAI from market data, for information only and not investment advice.