SpaceX stock keeps falling, but Jim Cramer says buy it for your kids: why now?

Jim Cramer is telling investors to consider buying one of the market’s most battered recent IPOs for people who may not need the money for decades: their children.

SpaceX stock NASDAQ:SPCX has nearly halved from its June peak as investors question the sums Elon Musk plans to spend on artificial-intelligence infrastructure.

The stock rebounded 6.1% to $114.92 on Thursday as 911.5 million insider shares became eligible for trading, but remained below its $135 IPO price.

Cramer’s argument on CNBC is deliberately long-term.

Starlink, Starship, AI and orbital computing could become businesses whose scale cannot be judged from the next earnings report. The harder question is why investors should buy that future now.

SpaceX’s biggest businesses have barely started

SpaceX’s first public earnings showed why the long horizon matters.

Second-quarter revenue rose about 90% from a year earlier to $7.8 billion, while the company posted a $541 million net loss.

Capital expenditure reached $18.4 billion, with AI infrastructure accounting for much of the increase.

The investment case rests on several businesses developing together, like Starlink becoming a larger communications platform, Starship cutting launch costs, AI services generating revenue and Musk eventually commercialising computing infrastructure in orbit.

Oppenheimer reiterated an Outperform rating and $250 target after earnings, despite calling elevated capital spending a major concern.

Its analysts now expect SpaceX to reach $1 trillion in annual revenue by 2032, three years earlier than previously forecast, arguing that the company has historically excelled at execution.

Wall Street sees opportunity where investors see spending

Bank of America maintained a Buy rating, $235 target and expects SpaceX’s AI operation to generate about $24.5 billion of revenue in 2026.

The bank noted that the second-quarter report made it more positive on the company’s positioning.

Morgan Stanley retained an Overweight rating and $300 target. It raised its 2026 revenue forecast to $45 billion to $48 billion and expects $91 billion to $102 billion the following year.

Bernstein analysts led by Douglas Harned said they saw nothing fundamentally negative in the earnings report, suggesting the insider-share unlock probably contributed to the sell-off.

Thursday’s rebound supported that view. SpaceX rose even as more than 900 million shares became eligible for sale, suggesting part of the feared supply pressure was already priced in.

The problem is investors may need extraordinary patience

The bullish forecasts come with extraordinary spending assumptions.

Morgan Stanley lifted its capital-expenditure estimate to $64 billion for 2026 and $163 billion for 2027 as SpaceX accelerates its computing buildout.

Revenue growth may therefore remain accompanied by heavy financing needs for years.

Piper Sandler kept a Neutral rating and cut its target to $140, warning that lockup expirations could remain a valuation headwind until summer 2027.

It also noted that lucrative AI-cloud contracts can be cancelled, making their staying power difficult to assess.

Morningstar analyst Nicolas Owens offers the hardest challenge to Cramer’s thesis.

He values SpaceX at $62 a share and argues that the market price assumes highly optimistic outcomes for rapid Starship reusability and orbital data centres.