SpaceX Stock Drops Below IPO on Starship Failure, but Morgan Stanley Sees Double

SpaceX stock fell below its IPO price after scrubbing a Starship test flight due to engine ignition failures.
Morgan Stanley set a $300 price target on SPCX, citing potential growth from orbital AI infrastructure via Starmind.
Reddit discussion remained limited but slightly positive, with a sentiment score of 0.16 and 92 comments across 6 posts.

SpaceX (

$SPCX) commanded attention on Monday as the stock slid below its IPO price following a failed Starship test flight. Despite the setback, a bullish analyst call and the company's recent inclusion in the Nasdaq-100 fueled debate among retail investors, even though overall Reddit chatter remained modest.

Starship Engine Failure Weighs on Sentiment

SpaceX scrubbed a Starship test flight on Monday after engine ignition failures, sending shares below the stock's IPO price. According to a Motley Fool report, the company trades at 84x trailing revenue with no current profits, and investors continued selling despite Elon Musk's promise to retry within days with replacement engines. The operational hiccup added to valuation concerns that have dogged the stock since its public listing.

Morgan Stanley Sets $300 Price Target

On Sunday, Morgan Stanley analyst Adam Jonas set a $300 price target on

$SPCX, implying more than double upside from current levels. The bull case hinges on SpaceX building orbital AI infrastructure through its Starmind satellite constellation, with Morgan Stanley projecting revenue growth from $18.7B in 2025 to $3.3T by 2040. However, the stock trades at 94x revenue and faces significant execution risk; the bear case sits at just $75. The target provided a counterbalance to Monday's negative news.

Nasdaq-100 Inclusion and Market Reaction

SpaceX joined the Nasdaq-100 in July 2026 under the index's new fast-track admission rules. Historical data shows that stocks typically see modest short-lived gains after inclusion, then revert. SpaceX followed that pattern—rising slightly after the announcement but declining thereafter. The Motley Fool noted that investors should focus on company fundamentals rather than index membership as an investment signal.

SPCX

What Reddit Is Saying

Reddit discussion around

$SPCX was relatively light on Monday, with only 6 posts and 92 comments. The sentiment score edged slightly positive at 0.16, suggesting that retail investors were cautiously optimistic despite the price drop. The low mention count may reflect the stock's relative youth in public markets—

$SPCX is a new ticker with no prior rank in Tendie.Bot's data. With just 14 upvotes across all posts, the conversation remains niche but engaged, with commenters likely dissecting the Starship delay and the contrasting analyst call.

Elsewhere, Intel—which partners with SpaceX—saw its stock surge 278% in the first half of 2026, but has fallen 28% since June. The broader tech landscape continues to intertwine with SpaceX's fortunes, though Monday's focus remained squarely on the Starship engine issues.

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