HAPPY FRIDAY TO THE STREET
SpaceX (SPCX) didn’t make it through a single day of trading before the merger chatter started. President Gwynne Shotwell told CNBC that combining with Tesla (TSLA) "might make Elon's life a little easier” — though she says she's focused on keeping the lights on for now. Two trillion-dollar companies. One CEO. And soon, maybe, one ticker?
🟩 | US stocks finished higher today, wakeboarding on SpaceX’s record IPO.
📈 | One Notable Gainer: Merger or no, SpaceX surged in its Nasdaq debut, popping nearly 20% from its $135 IPO price.
📉 | One Notable Decliner: Adobe (ADBE) slipped after its fiscal Q2 operating margin missed estimates.
— Brooks & Cas
MARKET SNAPSHOT
S&P 500 Heatmap. Credit: Unusual Whales
WHERE WILL ELON MUSK’S NET WORTH LAND AT MONTH-END?
Elon Musk became the world's first trillionaire today. The SpaceX IPO added more than $180B to his pile, putting his combined SpaceX and Tesla stakes at roughly $1.05T, more than the GDP of Sweden.
Now traders are betting on where Bloomberg pegs the number come June 30. Counting that high is its own full-time job.
Market Movers
COREWEAVE, RH, CHARLES SCHWAB
📈 | CoreWeave (CRWV) jumped on its upcoming addition to the Nasdaq 100.
📉 | RH (RH) issued weaker-than-expected current-quarter revenue guidance.
📈 | Charles Schwab (SCHW) reported a record $49.9B in May net new assets.
📉 | Lennar (LEN) missed Q2 revenue and delivery estimates.
Tomorrow's Trade Idea, Today
MOON SHOT OR GAS-GUZZLER?
Stock Spotlight
Stock: SpaceX (SPCX)
Firm: Wolfe Research
Current Price: $161
Price Target: $175
Implied Upside: 9%
Looking for more upside? Street Sheet Research members get 3 stock picks from the Top 30% of analysts with 30%+ implied upside each week. Subscribe today.
Cleared for Takeoff
SpaceX's $1.77 trillion valuation has plenty of Wall Street heads spinning. Wolfe Research thinks the math works.
The firm initiated coverage at Outperform, and analyst Myles Walton's case starts with launch. He argues it's hard to find a wider moat than a near-monopoly on leaving the planet.
Gravity Is the Moat
SpaceX performs 5 of 6 US space launches, per a 2025 Georgetown report, and rocket reusability gives it a cost edge rivals can't touch. Walton calls successful Starship reusability the single most important value unlock.
He sees that edge carrying into AI, too. SpaceX won't out-innovate OpenAI or Anthropic on models, per Walton, but verticalization and cheap space access could win the compute end game.
Views From the Launchpad
Wolfe has company. Oppenheimer (OPY) started coverage with a Buy and a $190 target, implying 18% upside from today’s close.
New Street Research, however, initiated at $165, suggesting it’s already valued more or less appropriately.
Did you buy any shares of SpaceX (SPCX) in today's debut?
OVERHEARD ON THE STREET
🕊️ | President Trump denied Iranian state media's terms of a war-ending deal, but reports say a deal could be signed in Switzerland as soon as Sunday.
⚖️ | A federal judge extended the block on the Trump administration's $1.8B fund for compensating self-described victims of a weaponized government.
🏦 | Investors asked to redeem 13.3% of BlackRock's (BLK) flagship private-credit fund, which will again cap withdrawals at 5%.
📊 | US consumer sentiment rose to 48.9 in June, bouncing off record lows as gasoline prices eased.
🪙 | Bitcoin is trading down nearly half from its July 2025 record above $123,000.
THURSDAY’S POLL RESULTS
Do you own any shares of DraftKings (DKNG)?
▇▇▇▇▇▇ 🐂 Yup, I’m holding
▇▇▇▇▇▇ 🐻 Nope, not interested
▇▇▇▇▇▇ 👀 No, but I’m interested
And, in response, you said:
🐻 Nope, not interested — ““Not much different that Alamo Draft House — it all depends upon what product you are offering, bad movies, bad players, bad teams, or bad products, ALL fail.”
👀 No, but I’m interested — “I want some at the right price.”
