GM. This is Milk Road Stocks, the newsletter that just realized there’s a whole stock market outside of AI.
Yep, Milk Road AI is now Milk Road Stocks.
AI is still a massive part of what we cover, but our world has expanded into memory, robotics, space, energy, and the biggest opportunities across the market. So we figured our name should too.
New name. Bigger playground.
Today, we’re breaking down core reasons why SpaceX still has plenty of room to run.
First, a quick detour from rockets to private markets.
On Sept 23, Milk Road's Martin sits down with Alumni Ventures to talk about blockchain and private markets. Save your free seat here.
THREE REASONS WHY SPACEX STILL HAS LEGS 🚀
A cool nugget I came across today:
SpaceX is up about 39% since its low and has climbed back above its $135 IPO price.
There was lots of chatter about it falling below $100 but our Head of Research, Kyle, remained bullish on this stock.
Here are his main points on SpaceX:
1. The current valuation may be too low
SpaceX is targeting roughly $100B in annualized revenue by the end of 2026. Elon himself said they'll "easily hit $100B by year end if they do nothing else."
Based on that, Kyle estimates a fair value of roughly $131–$244 per share.
Historically, Elon-linked companies have also traded at a 40-75% premium which could push that range to $183–$427.
2. The 2027 bull case could be even bigger
A recent SemiAnalysis report projects SpaceX could reach a $305B annualized revenue run rate by the end of 2027.
That number comes from one thing: compute.
SpaceX is attempting to add 8.6 GW of AI infrastructure in the next 16 months. The previous record was AWS at 3.8 GW in a year. So, SpaceX is essentially trying to double that pace.
Elon values AI compute at $30-$50 per watt per year. At 10 GW, that's $300-$500B in annual revenue from compute alone.
3. The biggest risk is still the unlocks
The first lockup tranche (on August 6th) hit the market with little visible impact.
But more unlocks are coming through December which could create selling pressure and volatility.
The next big unlock event will come in November when their earnings release unlocks another 28%. By Day 180, 93% of early-release shares will have hit the market.
That creates real volatility throughout the year so keep an eye out for this.
Milk Road PRO members got the call to buy SPCX at $115 in early August when most of the market was calling for it to fall below $100.
They're now up 25% on that position.
Along with long-term positions, this SpaceX trade is a good example of how our analysts also focus on short-term gains.
If you want to see what they’re buying before the next big move, you can follow all 5 analyst portfolios inside Milk Road PRO.
And guess what? We’re running a small campaign on PRO right now. Details below 👇
HEADS UP: PRO'S PRICE GOES UP AUG 26
Milk Road PRO used to be a paid newsletter with one portfolio attached.
Now it's a full platform:
- Five analysts running real-time portfolios.
- Every position, trade, and piece of reasoning out in the open.
- Live notifications to keep you in the know.
Melvin's portfolio is up 45% since he launched it in February.
If you'd put $10,000 behind his moves, you'd be sitting on about $4,500 in gains.
Five months of PRO cost $125 over that same stretch.
(Is there a better ROI on any investment right now??)
Next Wednesday, on August 26, PRO goes from $25/month to $39/month, and annual goes from $250 to $299.
Join before midnight ET on August 25 and you'll keep today's price for as long as you're a member.
FREE SEMINAR ON BLOCKCHAIN & PRIVATE MARKETS
Is VC capital still flowing into crypto or has AI taken it all?
Where is venture capital actually deploying across crypto and fintech right now?
Join Sophia Zhao (Partner at Alumni Ventures) and Martin from Milk Road for a live fireside conversation covering:
- Where capital is moving across blockchain and fintech
- What the next generation of blockchain companies are actually building
- How accredited investors can get exposure to private markets
The best part?
It’s completely free to attend and takes just one hour.
