• Citi (C) has reportedly added SpaceX (SPCX) to its 90-day upside catalyst watch list, according to people familiar with the matter, though the bank has not publicly confirmed the designation.
  • Shares of the newly public rocket-and-AI company jumped sharply following its first profitable quarter, with third-quarter revenue up 161% to $14.6 billion.
  • A correction on the headline: SpaceX priced its June IPO at $135, not $150 — that was the first trade price. The exact overnight move and year-to-date return remain difficult to verify.

Citi’s Bullish Signal

Citi has placed SpaceX on its 90-day upside catalyst watch list, according to people familiar with the matter, adding a fresh bullish signal for the Elon Musk-led aerospace and AI company just months after its June listing. The move follows a blockbuster third-quarter earnings report that sent shares sharply higher overnight, though the precise magnitude of the gain could not be independently verified. A Citi spokesperson declined to comment. SpaceX did not immediately respond to a request for comment.

Earnings Fuel the Narrative

SpaceX reported third-quarter revenue of $14.58 billion, up 161% from a year earlier, comfortably exceeding consensus estimates of roughly $12.7 billion to $13.0 billion. Net income came in at $4.4 billion, compared with a $1.05 billion loss a year earlier — the company’s first quarterly profit since going public. Diluted earnings per share of $0.35 also topped analyst forecasts, which varied by provider.

The growth was driven primarily by AI infrastructure and Starlink connectivity, not rocket launches. The AI segment generated approximately $7.6 billion in revenue, surging 830% year over year on the back of cloud-services agreements, the Cursor acquisition and rising Grok adoption. Connectivity contributed $5.2 billion in revenue with $2.4 billion in operating income and 13.6 million Starlink consumer subscribers. The space segment, by contrast, brought in just $1.8 billion, up 6%, with a $7 million operating loss.

Capital expenditures, however, totaled $19.59 billion for the quarter — exceeding revenue — underscoring the capital-intensive nature of the company’s expansion. Adjusted EBITDA came in at roughly $8.8 billion, up 306% year over year.

A Correction on the Headline

A key detail in the original headline requires correction: SpaceX’s IPO priced at $135 per share in June, while $150 was the first trading price when the stock opened on June 12. The distinction matters for interpreting the reported 8.14% year-to-date gain, which should specify whether it is measured from the offer price or the opening trade. Additionally, the exact 8.21% overnight move and Citi’s specific watch-list addition could not be independently corroborated in sources retrieved at the time of writing.

Citi was already bullish on SpaceX, having initiated coverage in July with a Buy rating and a $200 price target, citing launch advantages and opportunities in connectivity and AI. That broader thesis supports the latest catalyst designation, but does not verify the new 90-day watch-list move. Other analysts have also weighed in, with price targets ahead of earnings including $200 at Mizuho (MFG), $225 at RBC (RY) and $246 at Cantor Fitzgerald.

What to Watch

Over the next 90 days, investors will focus on whether analysts raise forecasts, whether AI-contract revenue proves repeatable, and whether Starlink maintains subscriber growth. The proposed acquisition of nationwide 800 MHz spectrum, announced October 8, remains subject to final FCC approval, and the company’s ambitions to compete with major U.S. telecom carriers represent a significant execution and spending burden.

The key takeaway: the earnings quarter appears robust, but the precise Citi designation and return statistics remain insufficiently verified. Investors should weigh the impressive growth against the company’s massive capital requirements and volatile post-IPO trading history.

Correction: An earlier version of this article incorrectly stated the IPO offer price as $150. The offer price was $135; $150 was the first trade price.