Argus Research initiated coverage of Space Exploration Technologies with a Hold rating, saying the company’s record-setting IPO valuation will be difficult to justify in the near term despite clear strength in revenue growth.
SpaceX completed its initial public offering in June 2026, raising total proceeds of $85.7 billion at a valuation above $1.75 trillion, making it the largest IPO in history. Analyst Steve Silver told investors that the offering implied a price-to-sales multiple of approximately 95 times 2025 revenues.
Silver highlighted valuation as a prominent concern and said SpaceX "is not yet consistently profitable, as its operating plan combines characteristics of both a mature infrastructure business and a venture-style growth investment." Argus also concluded that "it will likely be years before SPCX's multiples land at more normal levels."
Since the IPO, SPCX shares have shown notable swings. The stock climbed as much as 67% above the offering price before retreating to trade around 10% above that level. Argus expects such volatility to continue, citing a tight supply of shares and the company's early inclusion in many major equity indices as factors that could amplify price moves. The note also pointed to the prospect of lockup share expirations in the coming months as a source of additional market uncertainty.
Despite the cautious initial rating, Argus left open the possibility of revising its view higher. The research house said it "may look to upgrade the stock if it falls sharply on nonfundamental factors or if revenues and earnings accelerate at a faster-than-expected pace."
In sum, Argus frames SpaceX as a high-growth business with significant demand factors supporting top-line momentum, yet one whose valuation and profitability profile present near-term valuation challenges. The firm’s guidance implies a watchful approach: monitor fundamental performance and market dynamics rather than assuming a quick re-rating to conventional valuations.