Wall Street Rates SpaceX & the Global Investor Playbook

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Walmart, the world's largest retailer, cuts at the cost of hamburgers, along with thousands of other items, can its rivals afford to follow suit.
A global perspective. Well, to hear one, I'm joined by Jeanne Sun, head of portfolio advisory at Citi Wealth, to give us an inside look at the trends catching her team's eye.
And of course, SpaceX. The post IPO quiet period is over and we survey what the biggest banks finally have to say. For Tuesday, July 7th, it's Brew Markets Daily and I'm Ann Berry.
More market details to come. But first, Wall Street analysts are weighing in on SpaceX because today marks the end of the post-IPO quiet period, unleashing a wave of initiating coverage reports for many of the banks that underwrote the blockbuster offering. And the overwhelming message from them? Bullishness and loudly. Well, here's some of the numbers and comments that didn't only just catch my eye, but actually really left me a little bit baffled by the level of enthusiasm. Let's start with Morgan Stanley, which initiated with overweight and a $300 price target, the highest among the major IPO underwriters. The firm argues that SpaceX is evolving into much more than a launch company, calling it, quote, the final frontier of AI.
And highlighting what it describes as an integrated terrestrial and orbital computing platform that could become foundational AI infrastructure. Meanwhile, over at JP Morgan, launching with a $225 price target and an overweight recommendation. The bank justifying its position with confidence in Starlink's cash generation potential. And Deutsche Bank coming in a little bit higher with a $255 target at a buy rating. Deutsche describing Elon Musk's long term vision of, quote, making humanity multi-planetary as a competitive advantage that attracts talent and capital. Then over at Goldman Sachs, the bank was more conservative, still at a buy rating along with the rest of its peers, but with a $205 price target, arguing that investors should value SpaceX on nearer term execution rather than its most ambitious long range opportunities. Hold that thought, gonna come back to that in a moment. Meanwhile, Citigroup hedged a bit with a buy rating and a $200 price target, but suggesting that there's real upside here. Say that by hitting key engineering milestones, particularly Starship and orbital infrastructure, that share price could eventually be driven up to over 900 bucks.
Finally, Raymond James, affectionately known on the street as Ray J, sticking its neck out with an $800 price target, arguing that SpaceX could ultimately address a quote, $30 trillion market opportunity that spans launch, communications, AI, energy and advanced manufacturing. So going all in there on the long term opportunity and drinking the Kool-Aid on total addressable market, otherwise known as TAM. So on the day that SpaceX entered the NASDAQ 100, where did the stock actually end up? Well, surprisingly, given you have all these analysts saying that they should be trading at 200 bucks plus, and given the inflows expected from index tracker funds like QQQ that needs to track that NASDAQ 100, the share price actually dropped over 6% to around 150 bucks, still up from its IPO price of $135, but down even further from its peak so far of over $225 back on June 16th. So what's going on? Well, investors seem to be bracing for an influx of new shares that's a staggered lockup expirations will let insiders and early investors sell up to 20% of their holdings after upcoming earnings are released. And that is expected in early August. So we're just a couple of weeks away at this point. And there's still the overhang of SpaceX's recent $25 billion bond sale, which has raised concerns in some quarters about the capital intensity of its operations. Not enough concerns clearly to quell the enthusiasm of all those analysts, it seems. So on this one, we're going to keep on watching. Honestly, I'm just going to say this. I read a whole bunch of these bank research reports today. It's very, very rare that you see the level of enthusiasm and hyperbole perhaps in some cases that you read. So go get your hands on some of them. Read them if you can, because I mean, this really does feel like a moment. Well, later in the show, I welcome to the studio today's money mover, Jeanne Sun. But first, a spin through some headlines from today's trading session. Kicking off with Walmart, one of our favorites, and its push to win over cost-conscious shoppers, otherwise known as choiceful shoppers in some of those earnings transcripts. Well, the world's largest retailer says it's cutting prices on thousands of items across grocery, household essentials, outdoor living, toys and apparel. And that includes one of the biggest symbols of fluid inflation, ground beef, which will see its price per pound reduced by as much as 12%.