Observed Signal · Nov 6, 2026 · Earnings Report · Source: CNBC Investing · Impact: 2/5 · Sentiment: Neutral
SpaceX dips on Dem retribution fears; Deutsche Bank says buy
Shares of SpaceX fell nearly 13% on Wednesday and Thursday after the Nov. 3 midterm elections, on fears of Democratic 'retribution' against Elon Musk. However, Deutsche Bank analyst Edison Yu suggests the risks are more about 'perception' than reality, citing Musk's near-monopoly in rocket launches and the fact that most dealings are with the executive branch, which remains Republican-controlled. Yu reiterates a 'buy' rating with a $250 price target. Despite Texas flipping blue at the gubernatorial level, which could affect data center buildout, most of SpaceX's computing power is outside the state, limiting near-term impact. Baron Capital's Ron Baron also defended Musk on CNBC, noting the political pressure he faces.
The article discusses SpaceX stock movement and analyst opinion, which is relevant to investors but not to the broader AdTech/MarTech industry.
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Key Takeaways & Evidence Grounding
- SpaceX shares fell nearly 13% on Wednesday and Thursday after the Nov. 3 midterm elections.
- Deutsche Bank analyst Edison Yu reiterated a 'buy' rating with a $250 price target.
- SpaceX shares were up 6% in early trading Friday.
- Texas flipped blue at the gubernatorial level in the Nov. 3 election.
- Wells Fargo noted that almost a third of planned data center capacity is set to be located in Texas.
Connected Companies & Entities
“Shares of SpaceX fell nearly 13% on Wednesday and Thursday in the wake of the Nov. 3 election.”
“Deutsche Bank analyst Edison Yu reiterated a 'buy' rating on SpaceX stock with a $250 price target.”
“Almost a third of planned data center capacity is set to be located in Texas, according to a Nov. 2 note from Wells Fargo.”
Ontology Mapping & Concepts
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Tesla and SpaceX lose $457B after Musk's election bet
Elon Musk's political spending on the U.S. midterm elections has backfired, as Tesla and SpaceX lost a combined $457 billion in market value within two trading days. Musk spent about $474 million supporting Republican candidates, including $212 million on the losing Texas Senate race. Tesla's stock dropped 13.8% to $343.69, while SpaceX fell 12.5% to $123.62. The losses coincide with a broader tech sell-off, but analysts also cite political factors, including the new Democratic Texas governor's opposition to Musk's data centers and tax breaks. Musk's personal fortune has shrunk by $90 billion, and his political influence is waning.
Wall Street bullish on SpaceX ahead of test flights
Wall Street is regaining confidence in SpaceX ahead of its upcoming Starship test flight, with shares nearing their IPO price and analysts citing growth potential. Morgan Stanley rates SpaceX 'overweight' with a $300 price target, while Wells Fargo has a $212 target. Analysts highlight the potential for a 'ship catch' as a major catalyst and note SpaceX's dominance in the private launch market. Deutsche Bank suggests the space sector may be at a trough, expecting medium-term gains.
SpaceX’s Post‑IPO Plunge Ahead of First Earnings
Investors are watching SpaceX ahead of its first quarterly report after the June 12 IPO, following a collapse that wiped out more than $500 billion of market value and left the stock over 50% below its intraday high. The company — with an implied market cap near $1.4 trillion — faces scrutiny over valuation and fundamentals: a price‑to‑sales ratio in the 70s, negative free cash flow, multibillion-dollar quarterly cash burn and debt roughly double cash. Strategic catalysts could justify the price if successful: making Starship reusable, expanding profitable Starlink connectivity while launches remain loss-making, building orbital and terrestrial data centers, and growing AI compute and products (Grok). Key commercial moves include large compute contracts with Google and Anthropic and a planned ~$60 billion acquisition of AI coding startup Cursor; short sellers have also posted sizable paper gains since the IPO.
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