Should You Buy Intuitive Machines Stock While It's Trading Below $8?
Despite a strong growth outlook fueled by several high-profile contracts, shares of Intuitive Machines have cratered at the start of 2025, trading down 60% year to date at the time of this writing amid the broader stock market sell-off.
With the stock now trading below $8, is it a buy? Here's what you need to know.
Intuitive Machines does not launch rockets itself but instead designs, builds, and operates spacecraft, such as its lunar landers. For its groundbreaking February 2024 IM-1 mission, the company's Odysseus Nova-C lander rode a SpaceX Falcon 9 rocket -- an approach that allows it to concentrate on its core strengths in payload delivery, lunar surface infrastructure, mobility and robotics, satellite operations, and data communications services.
The company aims to advance its technology steadily, eyeing a space infrastructure market opportunity that experts project will grow to $1.8 trillion by 2035. The early financial results have been impressive. In 2024 (covering the full year ended Dec. 31) Intuitive Machines' total revenue reached $228 million, nearly triple the 2023 result amid multiple contract awards and a close partnership with NASA, ending the year with a $328 million backlog.
Projects fueling Intuitive Machines' growth include the Commercial Lunar Payload Services program, which builds on IM-1's success with IM-2's South Pole landing earlier this year to prospect for water. Two more lunar missions are slated through 2027. There is also the ongoing Omnibus Multidiscipline Engineering Services contract that further supports NASA with broad operational expertise.
For 2025, the company projects revenue of $250 million to $300 million, a solid 20% annual increase. While Intuitive Machines is not yet profitable, management's guidance suggests a positive adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) run rate by the end of the year, and for 2026, an encouraging sign of more sustainable fundamentals. This is backed by a robust balance sheet, with $385 million in cash and zero debt as of March 13, ensuring ample liquidity to drive its ambitions.
One of the attractions of Intuitive Machines as an investment is that, despite uncertainties over the U.S. economy's strength and the looming impact of Trump administration trade tariffs, its business profile and operating tailwinds remain largely insulated from these dynamics. Its multiyear NASA contracts, funded at the federal level, ensure project continuity regardless of how consumer spending or GDP evolves, providing valuable stability in the early stages of a fast-evolving space exploration industry. While a severe economic downturn could pressure NASA to reassess future projects or limit private sector opportunities, it's business as usual for now.
Looking ahead, key catalysts could reignite investor enthusiasm and boost Intuitive Machines' battered stock price. The IM-3 mission, set for early 2026, will launch the first of five data relay satellites under the NASA Near Space Network contract, marking its entry into lucrative high-bandwidth transmission solutions as part of its space infrastructure-as-a-service offerings.
Later in 2025, NASA's decision on the $4.6 billion Lunar Terrain Vehicle Services contract, spanning 15 years through 2040, could be a game-changer for Intuitive Machines, one of three finalists. Additional private sector engagements and deployment announcements would likely further bolster its growth trajectory to lift investor sentiment.
I'm bullish on Intuitive Machines and see the recent stock price weakness as a chance for investors to buy the dip before a potential rebound. With the stock trading approximately 5 times its estimated 2025 revenue, the forward price-to-sales (P/S) ratio highlights compelling value for an industry pioneer with substantial long-term potential. The rally from here may not shoot straight into orbit, but the company has the pieces in place to reward shareholders over the long run. A small position in the stock, built through dollar-cost averaging to manage near-term volatility, could work well within a diversified portfolio.
Before you buy stock in Intuitive Machines, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Intuitive Machines wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $461,558!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $578,035!*
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Dan Victor has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
Should You Buy Intuitive Machines Stock While It's Trading Below $8? was originally published by The Motley Fool
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Here are some of the biggest stories you may have missed overnight and early this morning: 'Striking while the iron is hot' Investors want rate cut 'validation,' but the Fed's dilemma remains Applied Materials' shares sink on weak China demand, tariff risks UnitedHealth jumps as Buffett's Berkshire buys 5M shares BofA's Hartnett sees profit-taking in stocks after Jackson Hole AI exacerbates tech divide with smaller stocks languishing A trader's guide to the Alaska talks between Trump and Putin China's economy slows in July on tariffs, weak property market Applied Materials' shares sink on weak China demand, tariff risks Shares in Applied Materials (AMAT) sank 14% before the bell on Friday after the chip equipment maker issued weak fourth-quarter forecasts on sluggish China demand, fueling concerns over tariff-related risks. Reuters reports: Read more here. 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Trump said earlier this month that semiconductor companies building out their domestic manufacturing footprint — this includes the world's leading contract chip manufacturer, Taiwanese firm TSMC (TSM) — would be exempt from his planned 100% tariffs on chips, commentary that sent chip stocks up. But Friday he implied that exemption may only be temporary. "I'm going to have a rate that is going to be lower at the beginning - that gives them a chance to come in and build - and very high after a certain period of time," he said. Consumer sentiment falls in August, marking first decline in 4 months US consumer sentiment deteriorated in August, falling for the first time in four months. The University of Michigan's Consumer Sentiment Index fell to 58.6 last month from a reading of 61.7 in July. It was also less than the 62 reading expected by economists surveyed by Bloomberg. 'This deterioration largely stems from rising worries about inflation,' wrote Joanne Hsu, the director of the university's Surveys of Consumers. Consumer sentiment had improved in June and July after plummeting in the spring as Americans worried about the impacts of Trump's tariffs. In May, the index showed sentiment at its second-lowest level on record as consumers expressed concerns over long-term inflation, fueled by uncertainty surrounding Trump's trade policies. Sentiment improved in June as Trump dialed back some of his aggressive stances on tariffs. 'Overall, consumers are no longer bracing for the worst-case scenario for the economy feared in April when reciprocal tariffs were announced and then paused,' Hsu said. 'However, consumers continue to expect both inflation and unemployment to deteriorate in the future.' US consumer sentiment deteriorated in August, falling for the first time in four months. The University of Michigan's Consumer Sentiment Index fell to 58.6 last month from a reading of 61.7 in July. It was also less than the 62 reading expected by economists surveyed by Bloomberg. 'This deterioration largely stems from rising worries about inflation,' wrote Joanne Hsu, the director of the university's Surveys of Consumers. Consumer sentiment had improved in June and July after plummeting in the spring as Americans worried about the impacts of Trump's tariffs. In May, the index showed sentiment at its second-lowest level on record as consumers expressed concerns over long-term inflation, fueled by uncertainty surrounding Trump's trade policies. Sentiment improved in June as Trump dialed back some of his aggressive stances on tariffs. 'Overall, consumers are no longer bracing for the worst-case scenario for the economy feared in April when reciprocal tariffs were announced and then paused,' Hsu said. 'However, consumers continue to expect both inflation and unemployment to deteriorate in the future.' US stocks mixed at the open US stocks were mixed on Friday at the open as Wall Street tempered its hopes for the Fed to cut interest rates in September, as economic data this week showed higher than expected wholesale inflation and a rise in July retail sales. The Dow Jones Industrial Average (^DJI) rose around 0.5%, putting the index on track for its first record since December. The benchmark S&P 500 (^GSPC) rose less than 0.1%, and the tech-heavy Nasdaq Composite (^IXIC) fell below the flatline. US stocks were mixed on Friday at the open as Wall Street tempered its hopes for the Fed to cut interest rates in September, as economic data this week showed higher than expected wholesale inflation and a rise in July retail sales. The Dow Jones Industrial Average (^DJI) rose around 0.5%, putting the index on track for its first record since December. The benchmark S&P 500 (^GSPC) rose less than 0.1%, and the tech-heavy Nasdaq Composite (^IXIC) fell below the flatline. Intel stock continues rise as Trump administration reportedly mulls taking stake in chipmaker Intel (INTC) stock spiked more than 7% Thursday and continued to climb 3% before the market open on Friday, following a report that the US government is considering taking a stake in the troubled chipmaker. Bloomberg reported that the Trump administration is in talks with Intel about the deal, which would help the company complete its Ohio factory expansion that had been put on hold. The report follows a meeting between President Trump and Intel CEO Lip-Bu Tan earlier this week, which came after the president called for the CEO's resignation due to his ties with China. "As Intel's prospects have dimmed, the idea of support (governmental or otherwise) has gained traction, understandable given the company, for better or worse, remains the only US-headquartered prospect for leading edge semiconductor chips and processes; it seems like Trump may have been persuaded to see the light," Bernstein analyst Stacy Rasgon wrote in a note to investors Friday. It's not the first time the Trump administration has allegedly floated ideas to prop up Intel. In February, a news report said the US was pitching proposals to its rival TSMC to help support its turnaround by establishing a joint venture with Intel. Read more here. Intel (INTC) stock spiked more than 7% Thursday and continued to climb 3% before the market open on Friday, following a report that the US government is considering taking a stake in the troubled chipmaker. Bloomberg reported that the Trump administration is in talks with Intel about the deal, which would help the company complete its Ohio factory expansion that had been put on hold. The report follows a meeting between President Trump and Intel CEO Lip-Bu Tan earlier this week, which came after the president called for the CEO's resignation due to his ties with China. "As Intel's prospects have dimmed, the idea of support (governmental or otherwise) has gained traction, understandable given the company, for better or worse, remains the only US-headquartered prospect for leading edge semiconductor chips and processes; it seems like Trump may have been persuaded to see the light," Bernstein analyst Stacy Rasgon wrote in a note to investors Friday. It's not the first time the Trump administration has allegedly floated ideas to prop up Intel. In February, a news report said the US was pitching proposals to its rival TSMC to help support its turnaround by establishing a joint venture with Intel. Read more here. Retail sales climb less than expected in July Retail sales rose 0.5% in July from the prior month, according to data from the US Census Bureau released Friday — marking the second monthly gain in a row, as consumer spending steadies following a dramatic drop in earlier in the year. Still, the jump was less than the 0.6% gain expected by economists surveyed by Bloomberg. Excluding auto and gas sales, retail sales were up 0.2%, also less than the 0.3% projected. An even narrower slice of retail sales called the 'control group' — a more precise measure of consumer spending that excludes certain sales such as those from office supply and tobacco stores — climbed 0.5%, ahead of the 0.4% expected. Retail sales rebounded in June, a sign that consumer spending habits were remaining resilient despite President Trump's tariffs. Read more here. Retail sales rose 0.5% in July from the prior month, according to data from the US Census Bureau released Friday — marking the second monthly gain in a row, as consumer spending steadies following a dramatic drop in earlier in the year. Still, the jump was less than the 0.6% gain expected by economists surveyed by Bloomberg. Excluding auto and gas sales, retail sales were up 0.2%, also less than the 0.3% projected. An even narrower slice of retail sales called the 'control group' — a more precise measure of consumer spending that excludes certain sales such as those from office supply and tobacco stores — climbed 0.5%, ahead of the 0.4% expected. Retail sales rebounded in June, a sign that consumer spending habits were remaining resilient despite President Trump's tariffs. Read more here. Investors want rate cut 'validation,' but the Fed's dilemma won't go away Yahoo Finance's Hamza Shaban writes in today's Morning Brief: Read more here. Yahoo Finance's Hamza Shaban writes in today's Morning Brief: Read more here. Good morning. Here's what's happening today. Economic data: Retail sales (July); Export prices (July); Industrial production (July); University of Michigan consumer sentiment (August preliminary) Earnings: No notable earnings. Here are some of the biggest stories you may have missed overnight and early this morning: 'Striking while the iron is hot' Investors want rate cut 'validation,' but the Fed's dilemma remains Applied Materials' shares sink on weak China demand, tariff risks UnitedHealth jumps as Buffett's Berkshire buys 5M shares BofA's Hartnett sees profit-taking in stocks after Jackson Hole AI exacerbates tech divide with smaller stocks languishing A trader's guide to the Alaska talks between Trump and Putin China's economy slows in July on tariffs, weak property market Economic data: Retail sales (July); Export prices (July); Industrial production (July); University of Michigan consumer sentiment (August preliminary) Earnings: No notable earnings. Here are some of the biggest stories you may have missed overnight and early this morning: 'Striking while the iron is hot' Investors want rate cut 'validation,' but the Fed's dilemma remains Applied Materials' shares sink on weak China demand, tariff risks UnitedHealth jumps as Buffett's Berkshire buys 5M shares BofA's Hartnett sees profit-taking in stocks after Jackson Hole AI exacerbates tech divide with smaller stocks languishing A trader's guide to the Alaska talks between Trump and Putin China's economy slows in July on tariffs, weak property market Applied Materials' shares sink on weak China demand, tariff risks Shares in Applied Materials (AMAT) sank 14% before the bell on Friday after the chip equipment maker issued weak fourth-quarter forecasts on sluggish China demand, fueling concerns over tariff-related risks. Reuters reports: Read more here. Shares in Applied Materials (AMAT) sank 14% before the bell on Friday after the chip equipment maker issued weak fourth-quarter forecasts on sluggish China demand, fueling concerns over tariff-related risks. Reuters reports: Read more here. UnitedHealth stock soars as Buffett's Berkshire buys 5M shares UnitedHealth Group stock rose 12% before the bell on Friday after Warren Buffett's Berkshire Hathaway (BRK-B, BRK-A) acquired 5 million shares in the company. A regulatory filing showed the purchase on Thursday. Reuters reports: Read more here. UnitedHealth Group stock rose 12% before the bell on Friday after Warren Buffett's Berkshire Hathaway (BRK-B, BRK-A) acquired 5 million shares in the company. A regulatory filing showed the purchase on Thursday. Reuters reports: Read more here. Sign in to access your portfolio
