SpaceX Gets Street-High $800 Target; Salesforce Downgraded on Weak AI Product Feedback

Raymond James initiated coverage of SpaceX with a Strong Buy rating and a Street-high $800 price target, arguing that the convergence of artificial intelligence and industrialized space access represents the most significant infrastructure shift since the internet. The firm's analysts see the company as building a foundational platform for the next generation of industrial capacity.

Bullish Calls on Infrastructure and E-commerce

According to Raymond James analyst Brian Gesuale, SpaceX's Starship vehicle is central to the thesis, as it is projected to reduce the cost of transporting mass to orbit by over 99%. The firm estimates SpaceX's total addressable market approaches $30 trillion and projects revenue could grow from approximately $38.5 billion today to over $837 billion by 2031.

Separately, Stifel upgraded Shopify to Buy and raised its price target to $150 from $110, citing the stock's year-to-date decline as an attractive entry point. Analyst J. Parker Lane sees a "realistic path to 30%-plus revenue growth in 2026" as the company gains market share in enterprise, B2B, and international markets. The upgrade was supported by Shopify's first-quarter gross merchandise value (GMV) growth of 35%, far outpacing the broader U.S. e-commerce market.

Mixed Outlook for Asian Tech Giants

Bank of America reiterated its Buy rating on Alibaba with a $172 price objective, calling the company "one of the most compelling AI plays in China." The bank forecasts Alibaba's AI-driven cloud revenue to accelerate to 45% year-over-year growth in the June quarter, helping to offset an expected 7.7% decline in its core customer management revenue amid soft industry conditions.

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Meanwhile, Mizuho TMT specialist Jordan Klein described the recent sell-off in Samsung shares as an "overreaction" to its preliminary second-quarter results. Klein argued that the revenue miss was likely due to weakness in mobile devices and TVs, not the critical memory business. He noted that memory operating margins remain strong and that pricing trends for DRAM and NAND look "very strong" for the third quarter.

Salesforce Faces AI Headwinds

In a contrasting move, Bernstein downgraded Salesforce to Sector Weight from Outperform, removing its price target. The downgrade was driven by weak customer feedback on the company's Agentforce AI product, according to analyst Jackson Ader.

Bernstein's channel checks indicated that customers feel their data is not organized enough for meaningful AI implementation and that the Agentforce product "just isn’t there." Ader also cited a recent CIO survey showing that more IT executives expect to deprioritize Salesforce spending over the next 12 months than plan to increase it.