Jim Cramer: SpaceX can't sustain its meme stock status

Author: Mwangi Enos Source: TheStreet Read Time: 4 min

I covered the SpaceX short thesis when veteran hedge fund manager Doug Kass said he planned to bet against the stock, just days after the Initial Public Offering (IPO). At the time, the stock was riding the kind of retail euphoria that makes fundamental analysis feel almost irrelevant.

Then Jim Cramer weighed in with a June 17 post on X (formerly Twitter):

"SpaceX could not maintain its meme status. Looks like it couldn't sustain the walk-up."

IPO Surge and Reversal

SpaceX (SPCX) went public on June 12 at $135 per share — the largest IPO in stock market history.

• The stock surged 50% above its offer price within three sessions.
• It briefly pushed the company's market value to nearly $3 trillion.
• Elon Musk became the world's first trillionaire.

Then the Cursor acquisition landed, and the sell-off began. SPCX was trading near $182 on June 18, down roughly 20% from its June 16 peak above $225, with a market cap of approximately $2.40 trillion, according to TheStreet.

Cursor Deal Cracks SpaceX Momentum

The catalyst for the reversal was SpaceX's June 16 announcement that it would acquire Anysphere — the company behind the AI coding agent Cursor — for $60 billion in an all-stock transaction, Reuters reports. That figure represents roughly 3.4% dilution of SpaceX's $1.77 trillion IPO valuation.

Morningstar analysts lowered their fair value estimate for SpaceX to $62 from $63 following the deal, citing "sizable dilution" and flagging a best-case scenario of $169 per share if AI revenue improves.

More SpaceX:

• SpaceX IPO gives Elon Musk a net worth number that stuns Wall Street
• Oppenheimer issues bold SpaceX stock price target
• SpaceX lands $30 billion Google deal a week before its IPO

That Morningstar figure of $62 was already well below the IPO price of $135, which the firm had called "significantly overvalued" before the company even went public.

Oppenheimer analyst Timothy Horan took the opposite view, TipRanks noted. Horan applauded the Cursor deal, raising his price target to $250 from $190.

"This deal is beneficial for both sides," Horan wrote, according to Forbes, noting that Cursor gains access to SpaceX's computing infrastructure. At the same time, SpaceX acquires AI coding technology, engineering talent, training data, and user base.

The disagreement between those two views captures exactly the tension driving the stock's volatility.

SpaceX Valuation Concerns Sophisticated Investors Keep Raising

My review of the SpaceX financial profile raises questions that the IPO euphoria has been answering with retail enthusiasm rather than fundamental analysis.

SpaceX reported $18.7 billion in revenue for 2025, up 33% year over year, but posted a net loss of $4.9 billion, according to CNBC.