SpaceX Seen with Neocloud Strength on Compute Spot Pricing
Dow Jones02:10
1410 ET - SpaceX's neocloud business of renting out cloud computing capacity could reach more than $200 billion in annual recurring revenue by the end of 2027, Deutsche Bank analysts say in a note, lifting the price target by $15 to $250. They say it's unclear how SpaceX hits its target for 13 gigawatts of compute by the end of 2027, adding that the target may represent contributions from a new data center campus. Broadly, though, the stock is benefiting from strong spot pricing for compute. The analysts say the SpaceX 10-Q implies a large customer is spending $1.68 billion a month, up from Deutsche Bank's initial modeling of $1.25 billion. SpaceX is up 1% at $149.00.
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