News & Updates
The latest news and updates from companies in the WLTH portfolio.
JPMorgan CEO Dimon says Anthropic's Mythos AI risks are a 'real issue'
July 15 (Reuters) - JPMorgan Chase CEO Jamie Dimon said on Wednesday that risks posed by Anthropic's Mythos AI model are a "real issue" that the U.S. government is on top of, underscoring concerns about the powerful model that have caused Washington to intervene. Dimon, speaking at Senator Dave McCormick's Pennsylvania Defense and Innovation Summit, added that access to advanced AI capabilities must be controlled, saying "you're giving ballistic missiles to individuals with Mythos." U.S.-based Anthropic released Mythos in April to a select group that included JPMorgan. The model has attracted interest from banks because it is considered among the most advanced AI systems for identifying cybersecurity vulnerabilities, helping firms uncover and fix weaknesses more quickly. However, in June, the U.S. government ordered Anthropic to restrict access to its top AI models, Fable 5 and Mythos 5, to foreign nationals over national security concerns, forcing the company to cut off worldwide access. The government later removed restrictions on the models after Anthropic implemented new safeguards. Governments and tech companies are grappling with AI safety concerns, including the misuse of systems capable of identifying software vulnerabilities. Washington has stepped up oversight of new model releases amid fears that advanced AI could be exploited by military intelligence in China, Russia or other countries of concern. Anthropic could not be immediately reached for comment on Dimon's remarks outside regular business hours. (Reporting by Mihika Sharma in Bengaluru and Mrinmay Dey in Mexico; Editing by Rashmi Aich)
Anthropic, Blackstone bet the next trillion-dollar AI business is implementation, not models
AI models are becoming ever more capable, but exactly what enterprise adoption will look like remains a big question. In a bid to shape that future, labs like Anthropic and OpenAI have spun up separate businesses dedicated to deploying AI engineers to their customers' offices -- a bet that assisting businesses in figuring out how to use their AI models is the next trillion-dollar category. One of those businesses now has a name: Ode with Anthropic is the $1.5-billion, AI implementation company that the AI lab launched in May as part of a joint venture with Blackstone, Hellman & Friedman, Goldman Sachs and others. The move follows OpenAI's own take on this, The Deployment Company, underscoring a growing acknowledgement among frontier AI labs that winning enterprise customers requires far more than shipping better models. Ode was originally conceived by Blackstone, which noticed a gap when it had roped in large consulting firms and small AI services boutiques to implement AI across its portfolio companies. One of those boutiques, AI engineering services startup Fractional AI, apparently stood out, and the joint venture acquired the startup shortly after it was announced. (Fractional ended an 11-month partnership with OpenAI when it was acquired.) Fractional has become the foundation of what is now Ode -- a kind of "scaled boutique" AI services firm. And its leaders have ambitious goals. "It's pretty easy to imagine this as a trillion-dollar company someday if we execute well," Chris Taylor, CEO of Ode and co-founder of Fractional, told TechCrunch in an exclusive interview. "The key challenge of the business is how do you go through that phase of hyper growth without losing the emphasis on quality?" Ode currently employs 100 engineers, and works closely with Anthropic's applied AI team to identify where the tech can have an impact on different businesses, and create systems tailored to each organization's operations. Anthropic's internal team will continue to focus on strategic, mission-aligned deployments, a spokesperson told TechCrunch. The private equity firms backing Ode will funnel their own portfolio companies to the joint venture as potential customers, though Ode will not limit sales of its services to those companies. For Ode, an ideal customer is one whose CEO buys into the promise, according to Taylor. "A lot of the work that we're doing is the top one or two priority for the CEO of the company," Taylor said. "It's the most important product feature that the company is going to build over the course of the next two years, or it's reworking the most important business process they have."
Polymarket Traders May Be Manipulating Crypto Bets, Study Says
(Bloomberg) -- Researchers at Stanford University identified signs that traders may be manipulating one of Polymarket's most popular Bitcoin betting markets by briefly influencing the cryptocurrency's price used to decide the wagers. Most Read from Bloomberg The working paper, co-authored with a researcher at Singapore Management University, examined about two months of five-minute Bitcoin bets on Polymarket. It found repeated bursts of one-sided trading on the Binance exchange that temporarily moved Bitcoin's price in the final seconds before bets closed, benefiting traders positioned in the same direction. The activity was heaviest at times when small, temporary moves in Bitcoin's price could determine whether a bet paid out. The researchers described the pattern as a "transitory push to manipulate the spot price." Prediction markets have traditionally been used to forecast elections and sporting events, where traders cannot easily influence the outcome. The researchers argue bets tied to financial assets are vulnerable to manipulation because participants can trade the very asset that determines whether they win or lose. "These contracts have a structural vulnerability," Singapore Management University assistant professor Shihao Yu, one of the paper's authors, wrote in a LinkedIn post about the research. "They settle on a price that traders can move by trading the underlying asset itself." The findings come as exchanges expand prediction markets tied to financial assets. Cboe has begun rolling out products tied to stock indexes, while Nasdaq has sought approval for similar contracts, potentially extending the questions raised by the paper beyond crypto and Polymarket. "Polymarket uses multiple independent pricing oracles to aggregate data and ensure accuracy," a company spokesperson said. The company is looking to transition certain markets in the next year to settlement methods that use prices over a longer period rather than a single point in time. The change would "further ensure market integrity," the spokesperson said. While the researchers document unusual Bitcoin trading around when Polymarket's short-term Bitcoin bets settled, the paper does not prove that the trading necessarily came from Polymarket users who stood to gain from momentary moves in Bitcoin's price. The research also stops short of proving traders' intent but still presents evidence consistent with manipulation, according to Elton Shehdula, head of research at crypto analytics firm Allium.
Cerebras CEO Andrew Feldman Says Elon Musk Found a 'Pretty Good Idea' in Leasing SpaceXAI's Unused Grok Capacity to Anthropic
Benzinga and Yahoo Finance LLC may earn commission or revenue on some items through the links below. Cerebras Systems Inc. CEO Andrew Feldman says SpaceXAI, formerly xAI, moved into rented AI computing because its processors were not busy enough, as Grok drew less usage than expected. Feldman Blames Grok's Weak Early Adoption Speaking with Molly O'Shea on the Sourcery podcast on Monday, Feldman explained that Musk's company pivoted to an operator that rents out AI infrastructure because its Grok model struggled with early enterprise market adoption, leaving billions of dollars in hardware sitting idle. "You have to ask why they had available capacity," Feldman said. "They had available capacity because the Grok model wasn't used very much." Cerebras CEO @andrewdfeldman explains why @elonmusk and SpaceXAI made a deal to lease GPUs to Anthropic: "You have to ask why they had available capacity... They had available capacity because the Grok model wasn't used very much." "They had these GPUs sitting around, and... https://t.co/1IHsE98NR3 pic.twitter.com/ssomhhLJJl -- sourcery (@sourceryy) July 13, 2026 Trending: Avoid the #1 Investing Mistake: How Your 'Safe' Holdings Could Be Costing You Big Time Feldman said SpaceXAI could not afford to leave equipment idle. "They had these GPUs sitting around, and that's a bad idea," he said. He pointed to IPO-bound Anthropic's agreement to use SpaceX's Colossus 1 data center in Memphis, Tennessee. Anthropic said the site provides more than 300 megawatts through over 220,000 Nvidia GPUs, allowing it to double Claude Code limits, remove peak-hour reductions and raise API ceilings. "They leased a whole block of them to Anthropic, and looked up and said, 'Whoa, that's a pretty good idea,'" Feldman said. "We had all these GPUs. Our model wasn't a success, but we can have a great business by stepping into what is a constrained market." Anthropic Deal Monetizes Idle GPU Capacity In May, Anthropic agreed to pay $1.25 billion per month for Colossus and Colossus II capacity through May 2029. Both sides can terminate with 90 days' notice, and Musk described the arrangement as a six-month lease, leaving its long-term value uncertain. See Also: Skip the Regrets: The Essential Retirement Tips Experts Wish Everyone Knew Earlier. Colossus 1 supported Grok's development, but Reuters described its capacity as unused prior to the Anthropic agreement. SpaceXAI said Grok 4.5 trained across tens of thousands of Nvidia GB300 processors.
Anthropic official says stopping AI usage is 'the wrong' response to AI cost concerns
* Anthropic officials are cautioning companies against knee-jerk reactions to rein in AI use. * Angela Jiang, head of product for the Claude Platform, said some customers are making those sorts of moves. * The initial tokenmaxxing hype has morphed into a more ROI-focused moment. Top Anthropic officials are cautioning against companies cutting back on their AI use as costs increase. "Something that's really top of mind for us that we kind of try to spend some time with users on is what you don't want to do is stop AI usage. That's kind of the wrong move," Angela Jiang, head of product for the Claude Platform, recently told Sequoia Capital's "Training Data" podcast. "And we do actually see some of our customers do that." Katelyn Lesse, head of platform engineering at Anthropic, said the focus on costs was part of "a normal natural cycle for companies" as they figure out the best way to deploy AI. "The thing that gets dangerous is when you're kind of just like, here's a cap and you're stuck within your cap," said Lesse, who joined Jiang for the interview. Jiang said that Anthropic often finds that AI spending has "erupted" in companies where employees procure Anthropic's AI models themselves through "some kind of shadow IT." Instead of curtailing usage, she said companies can find ways to use AI more efficiently. "What we try to kind of encourage our customers is like, you don't want to stop the innovation," she said. "If you are getting returns on top of this, you are shipping faster than ever before, you can run more operationally efficient -- then those are gains." Lesse said it's about "encouraging innovation" while understanding the different ways to get the desired result. "One is like you take Opus and you run it all night and you do something crazy," she said. "And another is maybe to get a little bit smarter with the strategies that you put together in order to create that same outcome within a lower cost. And I think that's the next layer of thinking that everyone's going to start to do." AI companies are facing an increasingly skeptical Corporate America that sees rising AI bills without what some executives have said is an adequate ROI to justify the spending. In response, AI companies like Anthropic have emphasized the cost efficiency of their models and services, which can better tailor AI to specific enterprise needs. Cost concerns could weigh on the broader AI market as companies like Anthropic approach highly anticipated IPOs. A new kind of router. Companies like Vercel are seizing this cost-conscious moment by offering customers a way to route their AI usage to the best model suited for the task. Analysts have said that routing requests will remain in high demand so long as AI token costs remain high.
Canada regulator warns major banks on Anthropic AI cyber risks - report
Canada's federal banking watchdog alerted the country's financial institutions on risks tied to Anthropic's Claude Mythos and other advanced AI models, reported Reuters. According to the regulator, the technology could increase cyber threats and reduce the time available to detect and patch vulnerabilities. The Office of the Superintendent of Financial Institutions (OSFI) sent the message to chief technology officers, chief information security officers and chief risk officers across the financial sector, including large banks and insurers, according to documents Reuters obtained through an access-to-information request. Authorities in several jurisdictions are examining cybersecurity concerns linked to Anthropic's frontier AI model Mythos. The model has been described as highly capable of identifying and exploiting cybersecurity vulnerabilities, creating challenges for banks and their older technology systems. "Advanced artificial intelligence models, such as Anthropic Claude Mythos, significantly compress the timeframe for effective risk mitigation," OSFI said in an email. "Accordingly, this bulletin is grounded in our existing guidance and outlines sound practices that institutions can adopt to enhance the speed and effectiveness of risk identification, mitigation and response." Recognition of the risks associated with Mythos by OSFI may lead Canadian banks, insurers and other regulated institutions to put more resources into technology aimed at protecting clients from cyber threats, noted the news agency. In a statement to Reuters, the regulator said: "OSFI takes a technology‑neutral, risk‑focused approach to emerging technologies, including advanced artificial intelligence models such as Mythos. Our focus is not the technology itself, but how federally regulated financial institutions govern and manage the risks associated with its use." In early April, Canadian banking executives met regulators to discuss risks linked to Mythos, shortly after US Treasury Secretary Scott Bessent and then-Federal Reserve Chair Jerome Powell held an urgent meeting with bank chief executives to warn about cyber risks connected to Anthropic's latest AI model. OSFI sent the email to company executives in April. The cyber capabilities of some frontier AI systems are considered that access has been restricted, with currently excluded from Mythos. Three of Canada's big six banks, Royal Bank of Canada, TD Bank and BMO, have set out plans to make millions from AI investments as they moved from trial projects to uses such as chatbots, internal tools and reducing dependence on third-party tools.
Is SpaceX Planning to Make a Smartphone to Rival the iPhone?
Space Exploration Technologies (NASDAQ: SPCX), also known as just SpaceX, is a company that could disrupt many different industries, including space travel and telecom. But one that investors may not have considered is the smartphone market. While its Starlink service offers mobile internet for smartphones, CEO Elon Musk has also hinted that entering the smartphone market may be a possibility. Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue " The company reportedly has a prototype for a device that's similar to an iPhone According to a recent report from the Wall Street Journal, SpaceX has been working on a device that has a slimmer design than Apple's iPhone. While it's designed to help people interact with artificial intelligence (AI), its capabilities could certainly extend beyond that, as it's expected to use a Snapdragon chipset from Qualcomm. The device is nowhere near launching, and there is no certainty that it will even come to market. But with Musk being critical of Apple's restrictive app store policies, it also wouldn't be surprising if he were to want to bring his own smartphone or similar device to market, one that could rival Apple's popular devices. He has suggested in the past that while he isn't thrilled with the idea of doing so, he may feel compelled. "The idea of making a phone makes me want to die. But if we have to make a phone, we will. But we will aspire not to make a phone." Is SpaceX the ultimate growth stock to own? One of the most compelling reasons to invest in SpaceX despite its high valuation is that it has some tremendous growth opportunities. Not only can its reusable rockets revolutionize space travel, but its Starlink business could make it a big player in the telecom sector. And its biggest opportunities are in artificial intelligence (AI), with the company planning to put data centers into space. SpaceX arguably already has too many places to spend and invest in as it is. A smartphone may be a possibility down the road, but I wouldn't expect that to be a focus for the business at this stage. SpaceX has already been incurring billions in losses, and investing in too many different areas at once could prove to be costly and risky. While making risky investments can work for large tech companies with massive resources and strong financials, that strategy may not be as sound for a company such as SpaceX, which still needs to find its way out of the red.
With a Nearly 7% Dividend Yield, Is Verizon Stock a Buy on SpaceX Fears?
Mobile operator Verizon (NYSE: VZ) has seen its shares sell off in the wake of the SpaceX (NASDAQ: SPCX) IPO, lifting Verizon's dividend yield to 6.7%. The sell-off looks overdone in my view, making the stock an attractive buy at current levels. Investors worry that SpaceX will use its leadership in satellite internet to challenge traditional mobile carriers like Verizon. However, there are multiple hurdles to this happening. Two of the biggest are technology constraints and regulatory issues. Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue " A look at the potential threat Cellular networks, like Verizon's, use dense, localized cell towers and small cell antennas that reuse spectrum thousands of times within a single city. Low-earth-orbit (LEO) satellites like those SpaceX deploys, on the other hand, project massive beams over large areas. If millions of people in a dense city or suburb tried to stream video via direct-to-cell satellite at the same time, capacity would collapse. Meanwhile, modern green building initiatives, such as reinforced concrete, steel, and low-e glass used in office buildings, block satellite signals. Even SpaceX's VP for satellite engineering, Michael Nicolls, stated this at the company's Mobile World Conference: "Satellite is complementary to terrestrial networks; it cannot provide the data density that terrestrial networks have. But it can augment terrestrial networks in areas where they cannot reach. Or when terrestrial networks need additional capacity." Meanwhile, after discussing the potential for SpaceX to offer a mobile network with a former FCC attorney, BNP Paribas analyst Sam McHugh concluded there were few ways for SpaceX to enter the mobile space unless those companies struck a deal with SpaceX. He noted that current FCC rules prevent Elon Musk's company from requiring carriers to enter wholesale network agreements or to provide roaming access. While there is a risk SpaceX gets into space by acquiring a carrier like T-Mobile, the three big carriers did form a joint venture to help address coverage gaps in the U.S. by pooling spectrum, looking to fend off any risk from satellite companies. Bundling opportunity ahead Putting aside SpaceX's concerns, Verizon has a big opportunity ahead as it starts to cross-sell and bundle wireless and broadband services to the customers it gained when it acquired Frontier Communications earlier this year. This should be a nice subscriber and revenue growth driver, as only about 20% of its customers have both wireless and broadband subscriptions.
Nvidia vs Cerebras: Which Is the Better Discount AI Buy Now?
Nvidia (NASDAQ: NVDA) and Cerebras Systems (NASDAQ: CBRS) both offer something in great need right now: the high-powered compute to fuel artificial intelligence (AI) workloads. Nvidia is the better-known of the two, having been in the chip space for more than 30 years, and today dominates the AI chip market. Cerebras is an exciting new player with a very powerful chip. Both of these companies could make an interesting investment, and they have seen their shares decline from highs in recent times. This presents a potential buying opportunity. But which is the better discount AI buy right now? Let's find out. Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue " The case for Nvidia Nvidia hardly needs an introduction these days. The company has made headlines since the start of the AI boom as its comments set the tone for what happens next in this market. Nvidia designs the world's most sought-after graphics processing units (GPUs), the key chips needed to power essential tasks like the training and inference of models. The company was first to enter this market and has made innovation a focus -- that's helped it stay ahead of rivals. In fact, Nvidia updates its GPUs on an annual basis, and the next update is right around the corner. The company aims to ship its Vera Rubin platform later this year, and it will offer an important new product: the stand-alone central processing unit (CPU). This opens up a new $200 billion market to Nvidia, and the company plans on conquering it. In its latest earnings report, it predicted $20 billion in stand-alone CPU sales this year and said it was on track to dominate this market. Meanwhile, Nvidia has proven its strength over time, and in recent years has delivered quarter after quarter of double- or triple-digit earnings gains. And earnings have reached record levels amid this AI boom. All of this is likely to continue, considering the sustained level of demand and the idea that AI is in its early days of real-world use. The case for Cerebras Cerebras may not be a household name like Nvidia, but the company's technology might quickly put it on the radar screens of many investors. This player has designed a giant chip, its wafer-scale engine (WSE), that it says delivers speeds faster than today's GPUs. How has Cerebras accomplished this? By making the WSE 58 times larger than Nvidia's B200 chip.
Cerebras (CBRS) Makes a Massive Bet on Europe's AI Boom
With an upside potential of 60.19%, Cerebras Systems Inc. (NASDAQ:CBRS) is among the 12 Strong Buy Stocks with High Upside According to Analysts. On July 9, Cerebras Systems Inc. (NASDAQ:CBRS) announced a major expansion of its European infrastructure footprint, revealing plans to bring its first European data center capacity online by the end of 2026. The company intends to rapidly scale operations across France and the Nordic region, targeting a total capacity of 200 megawatts by the end of 2027. A portion of this infrastructure is expected to support workloads from OpenAI under the company's existing partnership. According to management, the expansion will place Cerebras' high-speed AI inference capabilities closer to European customers, addressing growing demand for locally hosted artificial intelligence compute resources while strengthening the company's global presence. Earlier, on June 30, Freedom Capital initiated coverage of Cerebras Systems Inc. (NASDAQ:CBRS) with a Hold rating and a $209 price target. The firm noted that the stock experienced significant volatility following first-quarter results, declining sharply and trading as low as $161. Despite highlighting meaningful operational risks associated with the company's rapid expansion strategy, Freedom Capital stated that the recent selloff has created a more attractive entry point for investors. The analyst believes the market may now be underappreciating the company's long-term opportunities within the AI infrastructure sector. Founded in 2015 and headquartered in Sunnyvale, California, Cerebras Systems Inc. (NASDAQ:CBRS) develops wafer-scale processors and artificial intelligence supercomputers designed to dramatically accelerate AI training and inference workloads. Its proprietary architecture enables customers to process complex AI models more efficiently, positioning the company as a differentiated provider of next-generation computing infrastructure. While we acknowledge the potential of CBRS as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. Disclosure: None. Follow Insider Monkey on Google News.
Cerebras (CBRS) Makes a Massive Bet on Europe's AI Boom
With an upside potential of 60.19%, Cerebras Systems Inc. (NASDAQ:CBRS) is among the 12 Strong Buy Stocks with High Upside According to Analysts. On July 9, Cerebras Systems Inc. (NASDAQ:CBRS) announced a major expansion of its European infrastructure footprint, revealing plans to bring its first European data center capacity online by the end of 2026. The company intends to rapidly scale operations across France and the Nordic region, targeting a total capacity of 200 megawatts by the end of 2027. A portion of this infrastructure is expected to support workloads from OpenAI under the company's existing partnership. According to management, the expansion will place Cerebras' high-speed AI inference capabilities closer to European customers, addressing growing demand for locally hosted artificial intelligence compute resources while strengthening the company's global presence. Earlier, on June 30, Freedom Capital initiated coverage of Cerebras Systems Inc. (NASDAQ:CBRS) with a Hold rating and a $209 price target. The firm noted that the stock experienced significant volatility following first-quarter results, declining sharply and trading as low as $161. Despite highlighting meaningful operational risks associated with the company's rapid expansion strategy, Freedom Capital stated that the recent selloff has created a more attractive entry point for investors. The analyst believes the market may now be underappreciating the company's long-term opportunities within the AI infrastructure sector. Founded in 2015 and headquartered in Sunnyvale, California, Cerebras Systems Inc. (NASDAQ:CBRS) develops wafer-scale processors and artificial intelligence supercomputers designed to dramatically accelerate AI training and inference workloads. Its proprietary architecture enables customers to process complex AI models more efficiently, positioning the company as a differentiated provider of next-generation computing infrastructure. While we acknowledge the potential of CBRS as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. Disclosure: None. Follow Insider Monkey on Google News.
SpaceX Fell Below Its Debut Price. History Says a $10,000 Investment Will be Worth This Much in a Year.
Space Exploration Technologies (NASDAQ: SPCX) splashed onto the scene just a few weeks ago when it completed the world's biggest initial public offering, raising more than $85 billion after the exercise of an overallotment option. Of course, SpaceX wasn't new to investors -- the company had been making headlines for years, particularly for its rocket launches for NASA. But this was the first time investors, from retail to professional, could easily invest in the company. Demand was high during the IPO -- it was greatly oversubscribed -- and during the first days of trading. The stock soared 50% from its $150 debut price to a peak of $225 on June 16. In recent days, though, SpaceX has lost the positive momentum. In fact, the stock has slipped below its debut price. Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue " If you had invested $10,000 in SpaceX's early days of trading, how much would this investment be worth in a year? History offers us a very clear answer. Exciting growth businesses First, though, let's take a quick look at the SpaceX story. The company has attracted investors thanks to its exciting growth businesses and its ambitious leader, Elon Musk. SpaceX operates in rocket launches, satellite-based internet, and artificial intelligence (AI), areas that each could drive significant revenue gains if they reach certain goals. And speaking of goals, many are ambitious, but if the company can accomplish them, they could be game changers. For example, SpaceX aims to develop data centers in space, and its most ambitious goal may be to colonize Mars. What's interesting about this mix of businesses is that they fit together nicely, with accomplishments of one driving gains in another. SpaceX's work to make reusable rockets and drive down the costs of launches will help it launch equipment more cheaply and quickly into space for its other businesses. Elon Musk is the chief executive officer behind these ambitions, and while some investors aren't fans of his strategies, others are -- and they generally rush to bet on Musk. The popularity of the SpaceX IPO is proof of this. $18 billion in revenue SpaceX has made progress in various areas -- it aims to launch its fully reusable rocket, Starship, with payloads later this year -- and is delivering growth. Revenue last year climbed more than 30% to $18 billion. But SpaceX needs to invest heavily to support the development of its technology, and this pushed the company to a $4.9 billion loss. This may continue, considering the complexity of the technology involved in the company's businesses.
One Month in and SpaceX Stock Is Down More Than 35% from Its Post-IPO Peak. How to Play SPCX Here.
A month ago, SpaceX Corporation (SPCX) arrived on the public markets with the kind of excitement few companies have ever generated. Investors rushed in, betting not just on rockets and satellites, but on Elon Musk's vision of building the next great technology powerhouse. The stock wasted no time rewarding that optimism, soaring well above its IPO price within days and briefly cementing itself among the world's most valuable companies. But Wall Street has a habit of sobering up after the celebration. More News from Barchart Since peaking just days after its blockbuster debut, SpaceX stock has tumbled 38.5%, giving back much of its early gains. The pullback came despite a steady stream of headline-grabbing announcements, including a major artificial intelligence (AI)-related acquisition, its first bond offering, inclusion in key stock indexes, and bullish analyst initiations. In other words, the news flow stayed strong, but the stock stopped listening. That shift reflects a familiar pattern. IPO excitement can push expectations sky-high, but eventually investors start asking tougher questions about valuation, execution, and whether ambitious promises can translate into real financial results. Now that the initial IPO euphoria is in the rearview mirror, the conversation is beginning to shift. Instead of chasing the headlines, investors are now weighing the company's fundamentals, valuation, and long-term growth prospects. So, has the recent sell-off created an attractive buying opportunity, or does SPCX still have more room to cool before it becomes compelling? About SpaceX Stock Founded in 2002, SpaceX has evolved from an ambitious rocket startup into one of the world's most influential technology companies. Headquartered in Starbase, Texas, the company operates across several fast-growing industries, including space transportation, satellite connectivity, and AI. SpaceX is best known for its reusable Falcon rockets, Dragon spacecraft, and the next-generation Starship program, which are reshaping access to space. Its Starlink unit provides high-speed satellite internet to consumers, businesses, and governments around the globe. Following its acquisition of xAI, SpaceX has also expanded deeper into AI, combining AI software with large-scale computing infrastructure. Together, these businesses have positioned SpaceX as a major player at the intersection of space, communications, and AI.
Is SpaceX Stock a Millionaire Maker? There Are 2 Things That Will Define That Answer.
There's a strong case to be made that Space Exploration Technologies (NASDAQ: SPCX), better known as SpaceX, is the most hyped initial public offering (IPO) of all time. It raised a record $75 billion during its IPO, hitting the market with an initial valuation of $1.77 trillion -- making it one of the world's most valuable companies. Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue " There are tons of people excited about SpaceX as a company, but there are also tons of people who are only excited about the stock and how much money it could potentially make them. They see CEO Elon Musk as a visionary who made plenty of millionaires through Tesla (NASDAQ: TSLA) and wonder if SpaceX is on that same path. Two questions that may guide the answer Two key factors will heavily influence whether or not a stock can be a millionaire maker: How much someone can initially invest and how much time they have to stay invested in the stock. If you have $800,000 to invest in a stock, it's much easier to hit the million-dollar mark, since the investment only needs to grow 25%, compared with having $100,000 to invest and needing it to grow tenfold. The same goes for timing. If you have $100,000 to invest and 20 years on your side, the chances of hitting the million-dollar mark are much higher than if you were trying to accomplish it in five years. So, which is most important in SpaceX's case? The numbers don't currently work in SpaceX's favor The average investor is much more likely to have 20 years to invest than to have hundreds of thousands to invest in a lump sum. So, for the sake of this example, we'll assume someone has $50,000 to invest in SpaceX right now (which is still a lot, to be fair), meaning their investment would need to grow by 20x to reach $1 million. At the time of this writing, SpaceX is valued at $1.82 trillion, so increasing its value by 20x would put it at $36.4 trillion. Some Wall Street analysts have said they see SpaceX's valuation reaching the $30 trillion ballpark in the next 15 to 20 years, so it's not impossible by any means. However, it's very unlikely, in my opinion. SpaceX's initial large valuation works against it. This isn't a situation like Tesla, whose initial valuation was $1.7 billion when it went public in June 2010. It's much easier to increase 20x in valuation to reach $34 billion from there than it is when you're starting from nearly $2 trillion.
SpaceX Fizzles to Close $1 Above IPO Price Weeks After Debut
(Bloomberg) -- Three days of losses have brought SpaceX shares to the brink of falling below their initial public offering price, a key level that traders and investors watch to assess the health of new issues. Most Read from Bloomberg Shares fell 2.2% Tuesday to close at $136.08 each, just $1 above the $135 price tag buyers paid last month in the biggest first-time share sale ever. Elon Musk's rocket, satellite and artificial intelligence company has plunged one-third from its post-listing peak, erasing nearly $850 billion in value. A company's shares falling below the IPO price within days or weeks of its first trading day punctures the narrative that's been carefully choreographed by the company and its bankers to hype up expectations. Putting shareholders in the red at such an early stage is a blow to confidence that some newly-listed firms don't recover from. Skeptics note that the stock trades at a forward estimated price-to-sales ratio of more than 30 times, among the highest in the Nasdaq-100 Index and modestly lagging that of Palantir Technologies Inc. SpaceX is also facing an extended lock-up that will see insiders periodically releasing shares into the market over the coming months. "We still don't think SpaceX has found its low," according to Ken Mahoney, chief executive officer of Mahoney Asset Management. "There will be continuous supply coming on in the coming months, and you would have to monitor how much demand would be there as you move down the quality spectrum." Index Addition SpaceX's slip near the IPO price comes just a week after the company was added to the Nasdaq 100 through fast-entry rules, and after analysts gave the company -- whose unconventional pitch included a base on the moon and eventually a colony on Mars -- a resoundingly bullish reception. More than a dozen bankers including Morgan Stanley, JPMorgan Chase & Co. and Goldman Sachs Group Inc. started coverage with buy-equivalent ratings, according to data compiled by Bloomberg. Over 80% of Wall Street analysts covering SpaceX say to buy shares and see major upside ahead. The average price target of $236.25 is more than 70% above Tuesday's close. It's normal for newly-public stocks to experience volatility. A Truist Wealth analysis of 30 major technology IPOs over the past 15 years found that they averaged a maximum decline of 55% in the first year of trading.
SpaceX Fizzles to Close $1 Above IPO Price Weeks After Debut
(Bloomberg) -- Three days of losses have brought SpaceX shares to the brink of falling below their initial public offering price, a key level that traders and investors watch to assess the health of new issues. Most Read from Bloomberg Shares fell 2.2% Tuesday to close at $136.08 each, just $1 above the $135 price tag buyers paid last month in the biggest first-time share sale ever. Elon Musk's rocket, satellite and artificial intelligence company has plunged one-third from its post-listing peak, erasing nearly $850 billion in value. A company's shares falling below the IPO price within days or weeks of its first trading day punctures the narrative that's been carefully choreographed by the company and its bankers to hype up expectations. Putting shareholders in the red at such an early stage is a blow to confidence that some newly-listed firms don't recover from. Skeptics note that the stock trades at a forward estimated price-to-sales ratio of more than 30 times, among the highest in the Nasdaq-100 Index and modestly lagging that of Palantir Technologies Inc. SpaceX is also facing an extended lock-up that will see insiders periodically releasing shares into the market over the coming months. "We still don't think SpaceX has found its low," according to Ken Mahoney, chief executive officer of Mahoney Asset Management. "There will be continuous supply coming on in the coming months, and you would have to monitor how much demand would be there as you move down the quality spectrum." Index Addition SpaceX's slip near the IPO price comes just a week after the company was added to the Nasdaq 100 through fast-entry rules, and after analysts gave the company -- whose unconventional pitch included a base on the moon and eventually a colony on Mars -- a resoundingly bullish reception. More than a dozen bankers including Morgan Stanley, JPMorgan Chase & Co. and Goldman Sachs Group Inc. started coverage with buy-equivalent ratings, according to data compiled by Bloomberg. Over 80% of Wall Street analysts covering SpaceX say to buy shares and see major upside ahead. The average price target of $236.25 is more than 70% above Tuesday's close. It's normal for newly-public stocks to experience volatility. A Truist Wealth analysis of 30 major technology IPOs over the past 15 years found that they averaged a maximum decline of 55% in the first year of trading.
How to Spot a Stock Market Bubble 101: Raymond James Just Placed an $800 Price Target on SpaceX, Valuing Elon Musk's Company at $10.5 Trillion
One month ago, on June 12, Elon Musk's artificial intelligence (AI) and space economy conglomerate, Space Exploration Technologies (SpaceX) (NASDAQ: SPCX), rewrote history with its initial public offering (IPO). The $85.7 billion raised, including the underwriters' overallotment, nearly tripled the previous IPO record holder, Saudi Aramco. But in kicking off IPO mania -- large language model developers Anthropic and OpenAI are expected to follow in SpaceX's footsteps -- SpaceX may also be fueling the final stages of an AI bubble that history suggests is waiting to pop. Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue " Rarely are stock market bubble warning signs as glaring as Raymond James Financial's price target assigned to SpaceX. Wall Street's high-water price target foresees SpaceX reaching $800 in 2031 Given that 21 underwriters helped bring SpaceX public and received shares for doing so, it should come as no surprise that Wall Street analysts have, as a whole, presented an overwhelmingly positive outlook for the company. But Raymond James Financial analyst Brian Gesuale is a true outlier. His $800 price target by 2031 implies 451% upside, based on where SpaceX's shares ended on July 10, and assumes a valuation of roughly $10.5 trillion. For context, this would be more than double Nvidia's current market cap. Gesuale foresees SpaceX's full-year sales scaling from an estimated $38.5 billion in 2026 to approximately $837 billion by 2031. More importantly, earnings before interest, taxes, depreciation, and amortization (EBITDA) are projected to catapult from $17.7 billion in 2026 to $696 billion by 2031. While there's no question that AI and the space economy are two of the hottest addressable opportunities on Wall Street, several headwinds suggest Gesuale's pie-in-the-sky price target is pure fiction and the sign of an end-stage bubble that's about to burst. SpaceX spotlights everything wrong with Wall Street Although the stock market is a long-term wealth-creating machine, it's prone to occasional bubble-bursting events. SpaceX's current $1.91 trillion valuation and Raymond James' $800 price target for the company spotlight everything that's wrong with Wall Street over the short term. For starters, SpaceX hasn't demonstrated that its operating model is sustainable. While satellite-based broadband services provider Starlink is profitable, AI start-up xAI -- the segment responsible for the lion's share of SpaceX's $28.5 trillion addressable market -- is burning cash as Musk's company chases AI compute capacity.
Here's How Big Wall Street Expects SpaceX's Business to Get in 5 Years
When a company's valuation is high and wildly above what its fundamentals justify, that's a clear sign that expectations are high. While that can be an encouraging sign that there is a ton of growth likely ahead for the business, it also signifies risk, because if it falls short and the growth story unravels, the stock could be poised for a significant sell-off. One company whose valuation hinges on its growth story is Space Exploration Technologies (NASDAQ: SPCX), which is often referred to as just SpaceX. Its market cap has been hovering around $2 trillion since its shares went public about a month ago. It has some tremendous growth opportunities, and here's just how big analysts believe the business will get in five years. Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue " SpaceX's revenue could top $565 billion by 2031 In recent years, there has been some solid growth, but nothing like what analysts expect from the company in the future. From $10.4 billion in revenue in 2023, the company's top line would rise by 35% to just over $14 billion in 2024, and then by another 33% in 2025, totaling $18.7 billion last year. That's a strong growth rate, but if analysts are right, then the company's top line could be about to take off, significantly. The bull case around SpaceX centers around its growth potential. Today, it trades at around 100 times its trailing revenue, but if the business gets much larger in the future, then its high valuation may be much more tenable. By 2031, Wall Street analysts project that its revenue will soar to $565 billion -- that's more than 30 times what it achieved this past year. Those kinds of numbers would make it among the largest companies in terms of revenue. E-commerce giant Amazon is the leader today, with its revenue totaling $743 billion over its past four quarters. Expectations are high, but so too is the risk SpaceX has some mammoth opportunities in artificial intelligence, space, and telecom. The problem, however, is that kind of significant growth means expectations are going to be through the roof for SpaceX. Not only will the company likely need to ramp up spending at a time when investors are growing more concerned about high capital expenditures, but it will also need to execute and prove that it's making the most of those investments. It's a tall task, to say the least.
Kraken rolls out Mastercard crypto debit card in UK and Europe
Kraken has launched a Mastercard debit card in the UK and Europe, allowing users to spend from a wide range of cryptocurrency and cash balances. The crypto exchange said the card can be used for everyday purchases online and in stores wherever Mastercard is accepted. Users can pay from more than 600 supported crypto and cash currency balances. The funds are converted in near real time at the point of purchase. Kraken said the card offers up to 2% cashback, paid weekly in Bitcoin, euros or pounds. It also said there are no transaction or ATM fees. The product is being introduced first in the UK and the European Economic Area (EEA), with other markets expected to follow "soon," according to the company. In the UK, the Kraken Card is issued by Monavate, which is authorised by the Financial Conduct Authority (FCA) to carry out electronic money activities and related payment services. In the EEA, the card is issued by UAB Monavate, which is authorised by the Bank of Lithuania. The launch forms part of Kraken's broader effort to develop a "holistic financial offering". The company is also redesigning its app to include more personalised features and a more intuitive interface. The card launch follows a recent agreement by Kraken parent Payward to acquire Reap Technologies in a $600m deal. Reap Technologies focuses on stablecoin-based card issuing and payments infrastructure. The company has developed a card issuing and cross-border payments platform linking traditional financial systems with digital assets for global business payments. Kamo Asatryan, global head of consumer at Kraken and chief AI and data officer of Payward, said: "People shouldn't have to worry about where their money is sitting before they spend it. Our customers already earn, save, invest, and trade with Kraken. "The Kraken Card adds 'spend' to that list, bringing it all together into one experience that just works." "Kraken rolls out Mastercard crypto debit card in UK and Europe" was originally created and published by Electronic Payments International, a GlobalData owned brand.
SpaceX Stock Plunges to All-Time Low After Competitor Makes Major Leap
Shares of Elon Musk's SpaceX took another beating when trading resumed on Monday, sliding to an all-time low of just under $139, well below its IPO opening price of $150. It's now over 38 percent down from its all-time high of $225 three weeks ago, illustrating how rapidly the hype has inverted into widespread skepticism over Musk's vision. Following a blockbuster Wall Street debut, the space company has struggled to maintain any degree of momentum as investors continue to ask some very hard questions, including over its major pivot to orbital data centers and its near-term profitability. Despite being valued at almost two trillion dollars, the company lost nearly $5 billion last year. Shares have hovered below the company's opening price for weeks now, despite plenty of bullishness among analysts. The news comes just days after Chinese state-run media showed a Long March 10B rocket booster being caught by an offshore recovery platform, indicating the country was making major strides in catching up with SpaceX's reusable rocket tech. Over the weekend, an experimental Japanese reusable rocket safely took off and landed, suggesting the nation may be right behind China as well. Beyond some steepening international space launch competition, experts believe SpaceX's transformation into an "AI play" may be closely related to its Wall Street woes, as the BBC reports. "Everyone saw SpaceX as an AI story," CFRA investment research analyst Keith Snyder told the broadcaster. "With Elon Musk, any company he touches gets people excited," he added. "But this was also the first time people felt like they were able to invest in something that was being marketed as an AI play." How SpaceX will cover its enormous losses and start actually making some money -- not to mention, prove that orbital data centers don't just make sense but are even feasible to begin with -- remains a major point of contention. In short, the initial enthusiasm surrounding SpaceX's IPO is firmly behind us. "If you bought around the first tick you're definitely underwater," Snyder told the BBC. "It started to look a lot like a meme stock." "If you're an IPO investor, you're ok," Mergermarket analyst Samuel Kerr added. "If you bought in the first few days, you're not very happy right now." Investors remain sharply divided on where SpaceX shares are headed next. Many analysts from major investment banks remain bullish, expecting the stock to make massive gains. Case in point, Morgan Stanley believes the company will reach a price tag of $300 -- far more than double its current stock price.