SpaceX shares bounced back to near their $135 June IPO price on Monday, recovering from a post-listing slump that had sent the stock as low as $108.27 just days prior. The rebound followed strong Q2 earnings: the company posted $7.81B in revenue, beating analyst expectations of $6.93B, and guided to $100B in annualized recurring revenue by year-end—a target Deutsche Bank analysts called 'likely very achievable.'
The revenue beat was driven by satellite internet (neocloud) and the Cursor AI coding acquisition. CFO Bret Johnsen noted Q2's $31B run-rate and flagged neocloud and Cursor as the primary drivers of the $100B target. Citi analysts revised 2026–27 forecasts higher and reiterated a buy rating with a $200 price target, though cautioning that the $900+ long-term valuation depends on Starship milestones.
For operators: SpaceX's rapid cash generation post-IPO (combined with capex discipline) positions it as a bellwether for mega-cap infrastructure spending and AI-driven satellite demand. A $100B ARR year-end target in only Q2 2026 signals customer appetite for low-latency connectivity at scale—a key constraint for distributed inference and edge AI workloads.