Strategy Stock Target Slashed
Netflix’s $72B Bet Targets AI and SpaceX Targets $800B Valuation
Strategy Stock Target Slashed
Cantor Fitzgerald has sharply reduced its 12-month price target for Strategy (MSTR) from $560 to $229, reflecting a tougher environment for raising capital tied to bitcoin. Despite the cut, the firm still assigns an overweight rating, arguing that current pricing may offer long-term upside if market conditions improve. The downgrade follows a steep decline in Strategy’s valuation multiple, limiting its ability to issue equity at a premium — a key part of its model for buying bitcoin.
Analyst Brett Knoblauch now expects Strategy to raise $7.8 billion through markets instead of $22.5 billion, with estimated value from treasury operations dropping to $74 per share. Mizuho, however, remains constructive, noting that Strategy’s recent $1.4B raise gives it nearly two years of preferred dividend coverage. Leadership signaled no plans to refinance convertible debt before 2028 and will only issue new equity if net asset value premiums return. Until then, patience and liquidity remain central.
Netflix’s $72B Bet Targets AI
Netflix’s $72 billion acquisition of Warner Bros. is being framed as a Hollywood power shift, but analyst Melissa Otto argues the real story is technology — specifically Google’s advances in AI and TPU chips. She believes the deal is less about studio dominance and more about securing the future of video-based generative AI. As AI begins to create and personalize moving images at scale, controlling a large content library becomes strategic infrastructure rather than entertainment. Otto suggests Netflix is preparing for a world where AI-generated video becomes as common as AI-written text, and Google’s chip edge could reshape competition.
Despite concerns about price — including debt approaching $11 billion and a valuation over 25x EBITDA — Otto sees long-term logic. Warner Bros. offers Netflix vast IP to train recommendation models, explore generative tools, and expand into advertising. In her view, this isn’t Hollywood’s death — it’s a defensive moat for an AI-driven future.
SpaceX Targets $800B Valuation
SpaceX is preparing a secondary share sale that could value the company as high as $800 billion, according to reporting from The Wall Street Journal. The move would mark another step in the rapid expansion of Elon Musk’s aerospace firm, which has poured resources into reusable rockets, satellite networks and government contract work. SpaceX has also indicated to some investors that a public offering may be possible as soon as late 2026 — a notable shift given Musk’s public hesitation about the pressures of running a publicly traded company.
If it reaches the proposed valuation, SpaceX would surpass OpenAI, which recently priced at around $500 billion. A future IPO would likely include Starlink, SpaceX’s fast-growing satellite internet division, previously considered for a separate listing. Musk acknowledged the downsides of going public — lawsuits, regulatory burdens, and short-term market focus — but said Tesla shareholders could eventually gain a path to participate in SpaceX’s growth.
DISCLAIMER: None of this is financial advice. This newsletter is strictly educational and is not investment advice or a solicitation to buy or sell any assets or to make any financial decisions. Please be careful and do your own research.