Wall Street’s Perspective on the IM-1 Moon-fueled Rally
Intuitive Machines’ spacecraft, Intuitive Machines’ stock, has skyrocketed in the past week. As its IM-1 mission made its way to the lunar surface, the stock of the Texas-based lunar company, commonly known as “LUNR,” has more than tripled since early January. This rally is largely fueled by the excitement of retail investors for the space company’s progress towards an unprecedented goal.
Analysts on Wall Street compare Intuitive Machine’s stock surge to a biotech company awaiting FDA approval for a new drug. The successful landing of the company’s lander, named “Odysseus,” on the moon’s surface further boosted the stock’s value. However, analysts caution that the current valuation of the stock is ahead of the company’s financials and may be driven by the excitement and historical significance of IM-1 landing on the moon.
Intuitive went public less than a year ago through a SPAC merger and has spent most of its time trading below its debut pricing. The enthusiasm for the first U.S. landing on the moon in over 50 years, particularly by a corporate entity rather than a government agency, has contributed to the excitement surrounding Intuitive Machines’ stock.
Analysts believe that retail investors are driving the current rally, with approximately 80% of trading in the past week attributed to retail traders. The global news coverage of Intuitive’s mission has given the company wider exposure and added to the momentum.
Despite the stock surge, Intuitive Machines still has milestones to pass in its IM-1 mission. The company is working under an $118 million contract with NASA, with specific milestones set for payment. By successfully completing these milestones, Intuitive Machines aims to prove its track record of success in the challenging environment of space. This will increase its chances of winning future large contracts with NASA and differentiate itself from competitors bidding for cargo delivery on future moon missions.
Analysts see Intuitive Machines’ progress in the IM-1 mission as a crucial factor in securing future bids and contracts, highlighting the company’s strong potential in the emerging space industry.
(Original article from CNBC – source)