In an extraordinary display of investor enthusiasm, Intuitive Machines’ stock has rocketed by an astonishing 300% in the wake of its groundbreaking lunar mission, IM-1. This surge comes after the company’s shares hit all-time lows just over a month ago. Wall Street is abuzz with the dramatic rise of the Texas-based lunar exploration firm, whose ticker symbol aptly reads “LUNR.” From a mere $2 per share in early January, the stock price has soared to around $9, with peaks reaching over $13 as the IM-1 mission progresses toward its lunar landing attempt.
Cantor Fitzgerald analyst Andres Sheppard likened the anticipation surrounding Intuitive Machine’s moon landing to the suspense of a biotech firm awaiting FDA approval for a groundbreaking drug. “We’ve never witnessed a publicly traded company go through [a moon landing attempt]. So this is new, not just for investors, but for us analysts,” Sheppard remarked to CNBC. He pointed out the binary nature of the event: success could propel the stock to near $15 per share, while any last-minute setbacks could lead to a significant drop.
Despite the potential for a higher stock price, Sheppard cautioned that the current valuation might surpass the company’s financial reality, driven by the excitement and historic nature of the IM-1 mission. Intuitive Machines went public via a SPAC merger less than a year ago and has traded chiefly below its initial offering price. Yet, the company has captivated analysts and investors alike with what could be the first U.S. moon landing in over half a century by a corporate entity, rather than a government agency.
According to Sheppard, the rally is predominantly fueled by retail investors, with an estimated 80% of the past week’s trading attributed to this group. This sentiment is echoed by Benchmark analyst Josh Sullivan and Canaccord Genuity analyst Austin Moeller, who also highlight the global media attention as a significant factor driving the stock’s surge. “The successful milestones are adding up to a point where [a moon company] is becoming a commercial reality, and I think that’s starting to catch on,” Sullivan noted.
Intuitive Machines is not just making strides in space exploration but also in securing its financial future. The company has achieved over 90% of the milestones required for payment under its $118 million contract with NASA. These milestones are critical for immediate revenue and establishing a track record of success that could significantly enhance the company’s prospects in securing future large-scale contracts.
As Intuitive Machines continues navigating space exploration challenges, the investment world watches with bated breath. The IM-1 mission represents a pivotal moment for the company and the broader space industry, encapsulating the blend of technological prowess, financial speculation, and the enduring human fascination with the final frontier.
