Intuitive Machines soared as much as 259% on Wednesday in a move reminiscent of 2021’s SPAC mania. The space exploration company has soared as much as 1,260% since it completed its SPAC merger last week.Intuitive Machines is developing different services for space exploration has already won contracts with NASA. Loading Something is loading.
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Intuitive Machines stock soared as much as 259% on Wednesday as investors rush into the space exploration company and revive their 2021 trading playbook.
Since Intuitive Machines completed its $1 billion SPAC merger last week, the stock has soared as much as 1,260%.
The surge in Intuitive Machines, which trades on the NASDAQ exchange under the ticker symbol “LUNR,” continues a trend that began at the start of 2023, in which some of the most speculative stocks have soared following a painful 2022.
And to be sure, Intuitive Machines is a speculative stock.
While the company has already won contracts with NASA and estimates that it generated $88 million in revenue last year, it is far away from profitability and its vision is to establish “the lunar infrastructure and basis for commerce to inform and sustain human presence on another orbiting body,” according to its investor presentation.
Via contracted shuttle launches and various lunar data services, the company hopes to increase human exploration of the moon, an enterprise it believes one day will be highly profitable.
Similar to the frenzy for SPACs two years ago that was accompanied by lofty financial guidance, Intuitive Machines is following suit with some big numbers it’s targeting for future revenue.
Guidance issued in September shows Intuitive Machines expects to triple its revenue in 2023 to $300 million, and then more than double that amount in 2024 to $759 million. That implies massive growth rates for various business units that have yet to generate any revenue for the company.
Whether Intuitive Machines’ stock price journey plays out the same way other hyped-up SPAC stocks did in 2021 and 2022 remains to be seen, but Tuesday’s pop is certainly reminiscent of the boom times SPACs enjoyed in 2021.
Shares pared gains in Wednesday afternoon trades, falling 29% from its intra-day high of $136 to about $96. The stock started trading at $10 per share last week.