SpaceX shares rose 9.5% following its earnings call, but longtime technology analyst Gene Munster argued that the stock warranted a gain of more than 30%. His bullish assessment centered on the gap between Elon Musk’s revenue outlook and Wall Street’s estimates.
Key Takeaways
- SpaceX shares gained 9.5%, below the more-than-30% rise Munster argued was warranted.
- Munster cited Musk’s outlook for $500 billion to $1 trillion in annual recurring revenue by the end of next year.
- Some analysts raised fourth-quarter 2027 revenue estimates to $70 billion from a previous $31 billion expectation.
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SpaceX shares rally, but Munster sees a larger move
Munster’s assessment followed SpaceX’s earnings call the previous night. He argued that Wall Street routinely discounts Musk’s projections, describing analysts as taking the low end of Musk’s guidance and then cutting it by another 50%.
The stock’s reported 9.5% advance was substantial, though well short of the move Munster advocated. His call for a gain above 30% was an analyst opinion, not a reported market outcome.
Revenue revisions remain below Musk’s outlook
According to Munster’s account of the call, Musk said SpaceX should reach annual recurring revenue of $500 billion to $1 trillion by the end of next year.
Separately, Munster said Wall Street had previously expected fourth-quarter 2027 revenue of $31 billion. Analysts who had already adjusted their forecasts after the results raised that estimate to $70 billion. The quarterly estimates and Musk’s annual recurring revenue outlook refer to different measures.
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