The selloff in SpaceX shares has driven the stock near a level that would imply investors are assigning no value to its artificial intelligence business, according to analysts at Morgan Stanley.
The rocket, space and artificial intelligence company has had a rocky trading debut after its record $86 billion offering in mid-June. Shares initially surged nearly 50% in first three sessions, but have tumbled since. They touched a low of $110.85, or 18% below the IPO price, earlier this week.
“We believe the current disconnect between increasingly bearish investor sentiment and largely unchanged fundamentals creates an attractive entry point in SpaceX shares.” Morgan Stanley analyst Adam Jonas wrote in a note to clients Friday.
