Space Exploration Technologies Corp. (NASDAQ:SPCX) stock fell about 2% in Monday’s premarket session as investors positioned ahead of the company’s first earnings report as a public company.
Nasdaq futures rose 0.18%, while S&P 500 futures gained 0.49%.
Jefferies Executive Pushes Back On Governance Concerns
Jefferies analyst Aniket Shah said concerns over Elon Musk’s control of SpaceX should not deter long-term investors. Shah said investors are taking an overly rigid view of governance by focusing on Elon Musk’s control over SpaceX.
Shah said investors who avoid the stock because Musk holds more than 80% of voting rights and serves as chief executive, chief technical officer and chairman may miss potential long-term gains, Bloomberg reported on Sunday.
Some institutional investors have criticized SpaceX’s structure, arguing that Musk’s control creates risks for ordinary shareholders.
Nell Minow, co-founder and chair of ValueEdge Advisors LLC, told Bloomberg in June that the SpaceX IPO “extinguishes shareholder rights entirely, all but eliminating the right to bring a lawsuit for failure to meet fiduciary standards, cutting off access to books and records.”
New York City Comptroller Mark Levine also criticized Musk’s control before the IPO, saying, “There’s no precedent for this.”
Earnings In Focus
SpaceX shares have declined about 20% since the company’s June 12 initial public offering, which briefly made Musk the world’s first trillionaire. The stock’s decline came during a broader technology selloff that pushed the Nasdaq-100 into correction territory.
SpaceX is scheduled to report its first quarterly results as a public company on Aug. 4 after the closing bell. Reuters reported that investors will likely focus on artificial intelligence spending and profitability at the company’s Starlink satellite communications business.
SpaceX Analyst Outlook
The stock carries a Buy rating with an average price forecast of $229.96 (high $800.00, low $115.00) across 35 analysts. Recent analyst moves include:
- Macquarie : Outperform (Maintains Forecast to $250.00) (Aug. 3)
- Macquarie : Outperform (Maintains Forecast to $250.00) (July 31)
- HSBC : Initiated with Hold (Forecast $115.00) (July 24)
Top ETF Exposure
- Defiance US 100 Tech Ex Software ETF (NASDAQ: XIGV ): 3.79% Weight
- ARK Innovation ETF (NYSE: ARKK ): 4.66% Weight
- ARK Autonomous Technology & Robotics ETF (BATS: ARKQ ): 5.93% Weight
Significance: Because SPCX carries significant weight in these funds, any significant inflows or outflows for these ETFs will likely force automatic buying or selling of the stock.
SpaceX Price Action
SPCX Stock Price Activity: SpaceX shares were down 1.33% at $106.93 during premarket trading on Monday, according to Benzinga Pro data.
Image via Shutterstock
Read Also: SpaceX Explores 1-Gigawatt Texas Data Center to Expand AI Computing
