r/investing
SPCX just landed investment grade credit ratings from Moody's, Fitch, and S&P
SPCX secures rare investment-grade ratings, highlighting strong institutional appeal and Starlink's growth despite recent net losses.
- SPCX achieved rare investment-grade credit ratings despite net losses, signaling strong debt servicing ability and unlocking institutional capital.
- The stock experiences wild intraday swings due to a thin float, and the company posted a massive $4.28 billion net loss last quarter.
Most of the spcx convos since june 12 has been about the 19% gain first day and the wild intraday swings. The stock hit an ath of $225.64 and then pulled back to around $185. On 18 june spacex received investment grade credit ratings from moody's, fitch and S&P global (Moody's assigned a Baa1 rating, fitch a BBB+ and S&P a BBB)and for context guys a company that posted a net loss of $4.28 billion last quarter, getting investment grade across all three major agencies just over a week into being public is genuinely unusual and def not retail hype and thats three independent credit committees agreeing the company can service debt reliably despite the losses voilaa.
Why does that matter more than the share price swings becz investment grade ratings open the door to a much larger pool of institutional capital like pension funds, insurance companies and bond funds that have mandates restricting them to investment grade paper so it also lowers spacex's future cost of capital significantly if they ever issue corporate bonds which matters a lot given the spending pace.
Spacex raised roughly $85 billion at a near $1.8 trillion valuation and the bull case rests heavily on starlink which grew revenue 50% year over year in 2025 with a 63% adjusted ebitda margin plus new compute deals with anthropic and alphabet that are expected to more than double the revenue run rate.
So the picture eight days in is wild price swings on thin float, a genuinely bullish credit rating signal thats easy to miss in the noise, a $286 spread between bull and bear price targets and structural index buying still working through the system. First earnings report is Aug 6 probably the next real data point that moves this from speculation to something you can actually underwrite.
Even european readers can get exposure through bitpanda's fractional shares if they want in before then though given the float dynamics, thats as much a bet on mechanics as fundamentals rn.
Does that change the long-term thesis for you or is it noise next to the valuation question?
It doesn't change anything for me - the current price (even after the drop) is crazy overinflated...at least 2.5 times above any reasonable FMV with all projections (without the pink dreams of Mars).