Why Financial Analyst Jim Cramer Urges Investors to Buy SpaceX Stock for Their Children
New York, Sunday, 9 August 2026.
Financial analyst Jim Cramer recommends purchasing SpaceX stock as a generational investment, comparing it to century-old railroad bonds despite recent price drops and major insider share unlocks.
Cramer Advocates for Generational Holding Strategy
Financial commentator Jim Cramer has advised market participants to view SpaceX as a generational asset, comparing investment in the newly public space exploration company to holding 100-year railroad bonds [1][2]. This recommendation was highlighted in social media commentary posted on 6 August 2026, where Cramer encouraged investors to consider the long-term potential and stability of the enterprise [1]. The financial guru suggests that SpaceX, with its innovative technology and ambitious goals, has the potential to yield significant returns not just for current investors, but also for their children and grandchildren [1]. This advice comes despite recent volatility, positioning the stock as a foundational holding similar to those who invested in the burgeoning railroad industry over a century ago [1]. Market analysts continue to debate the valuation and long-term trajectory of Elon Musk’s enterprise amid post-IPO volatility and lockup considerations [2].
Post-IPO Stock Performance and Volatility
SpaceX shares, trading under the ticker NASDAQ:SPCX, debuted at $135 per share before experiencing significant market fluctuations [2]. As of 6 August 2026, the stock rebounded 6.1% to $114.92, though this price point remains below the initial public offering value [2]. The difference represents a decline of -14.874 percent from the offering price, indicating ongoing pressure on the valuation [2]. This price action occurred on the same day 911.5 million insider shares became eligible for trading, contributing to supply pressure [2]. Despite the stock nearly halving from its June 2026 peak, the recent rebound suggests some stabilization following the lockup expiration [2].
Financial Fundamentals and Analyst Projections
In terms of financial performance, SpaceX Q2 2026 revenue rose approximately 90% year-over-year to $7.8 billion [2]. However, the company reported a net loss of $541 million during the same period, with capital expenditure reaching $18.4 billion largely driven by AI infrastructure [2]. Major financial institutions have issued varying targets, with Oppenheimer reiterating an Outperform rating and $250 target, projecting $1 trillion in annual revenue by 2032 [2]. Bank of America maintained a Buy rating and $235 target, forecasting $24.5 billion in 2026 AI revenue, while Morgan Stanley kept an Overweight rating and $300 target [2]. Morgan Stanley estimates SpaceX capital expenditures will reach $64 billion in 2026 and $163 billion in 2027 to accelerate computing buildouts [2].
Valuation Risks and Market Counterpoints
Contrasting the bullish outlook, some market observers argue the company is a great entity at the wrong price [3]. Piper Sandler downgraded its target to $140, maintaining a Neutral rating, and warned that lockup expirations could act as a valuation headwind until summer 2027 [2]. Morningstar analyst Nicolas Owens values SpaceX shares at $62, contending that the current market price relies on highly optimistic outcomes for rapid Starship reusability [2]. Bernstein analysts led by Douglas Harned noted they saw nothing fundamentally negative in the earnings report, suggesting the insider-share unlock probably contributed to the sell-off [2]. Investors are urged to weigh these divergent views against the long-term generational thesis presented by commentators like Cramer [1][2].