Morgan Stanley warns SpaceX stock below $100 would signal AI undervaluation

Analyst

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Summary · why it matters

Morgan Stanley analyst Adam Jonas warned that if SpaceX shares fall below $100, it would indicate investors are significantly undervaluing or ignoring the company's artificial intelligence efforts. In a note shared by Bloomberg, Jonas highlighted that most investors heavily discount Grok and Cursor, with many assigning zero or even negative value to AI due to high capital expenditure requirements and uncertain economics. SpaceX acquired xAI's Grok chatbot in February and is buying AI coding platform Cursor in a $60 billion all-stock deal expected to close in the third quarter. The stock was trading below $110 in early trading on July 27, down from its $150 opening price on June 12, ahead of its first public earnings report on August 4, when insider selling could add further pressure. Jonas sees the current valuation as an attractive entry point, and Bloomberg data shows 80% of analysts recommend buying with an average price target of $232.