SpaceX (NASDAQ:SPCX) Shares Down 9.1% – What’s Next?
by Sarita Garza · The Markets DailySpaceX (NASDAQ:SPCX – Get Free Report) dropped 9.1% on Thursday. The stock traded as low as $143.21 and last traded at $144.75. Approximately 194,023,245 shares changed hands during mid-day trading, an increase of 88% from the average session volume of 103,053,352 shares. The stock had previously closed at $159.31.
Key Stories Impacting SpaceX
Here are the key news stories impacting SpaceX this week:
- Positive Sentiment: Exceptional third-quarter results: SpaceX reported $14.58 billion in revenue, up 161% year over year, and $0.35 in EPS versus the $0.10 consensus estimate. Net income reached approximately $4.4 billion, compared with a loss in the prior-year period. Stock Market Today, Oct. 22: SpaceX Earnings Beat Sparks Profit-Taking
- Positive Sentiment: AI has become a major growth engine: The Super Intelligence segment reportedly generated more revenue than launches and connectivity combined, with revenue growth of roughly 830% and a $431 million operating profit. Google is also reportedly paying SpaceX for access to about 110,000 GPUs, supporting demand for its computing capacity. Google Is Paying SpaceX $11 Billion a Year for Compute
- Positive Sentiment: Strong outlook and analyst support: Management issued an optimistic 2027 revenue outlook, while Bank of America raised its price target to $275 from $235 and maintained a Buy rating. Musk also discussed adding substantial AI capacity in 2027.
- Neutral Sentiment: Potential Tesla combination: SpaceX and Tesla formed independent committees to examine a possible merger, which could create engineering and AI synergies. However, the transaction remains speculative and faces valuation, regulatory, shareholder-approval and Tesla-China hurdles. SpaceX and Tesla have high election stakes
- Negative Sentiment: Profit-taking and execution risk: Investors are reassessing SpaceX’s valuation after the earnings-driven surge. Analysts have highlighted substantial capital requirements for data centers, chips and other AI infrastructure, creating potential cash-flow, financing and execution risks.
- Negative Sentiment: Additional share supply: Reports indicate that approximately 911.5 million shares held by certain insiders became eligible for sale, raising the risk of selling pressure and dilution-related concerns. SpaceX Is Set to Make Dubious History Yet Again
Analysts Set New Price Targets
Several equities analysts have recently issued reports on the stock. Arete Research set a $450.00 price objective on shares of SpaceX in a report on Tuesday, August 11th. Moffett Nathanson boosted their target price on shares of SpaceX from $131.00 to $142.00 and gave the stock a “neutral” rating in a research report on Monday, September 14th. Wells Fargo & Company upped their price target on shares of SpaceX from $214.00 to $274.00 and gave the company an “overweight” rating in a research note on Wednesday. Barclays raised their price target on shares of SpaceX from $254.00 to $300.00 and gave the stock an “overweight” rating in a report on Wednesday. Finally, Wall Street Zen downgraded shares of SpaceX from a “hold” rating to a “sell” rating in a research note on Saturday, October 3rd. Three research analysts have rated the stock with a Strong Buy rating, thirty have given a Buy rating, nine have given a Hold rating and four have assigned a Sell rating to the company. Based on data from MarketBeat, SpaceX presently has a consensus rating of “Moderate Buy” and an average target price of $244.19.
Get Our Latest Stock Report on SPCX
SpaceX Stock Down 9.1%
The stock has a market cap of $1.91 trillion and a PE ratio of -1,608.33. The company has a debt-to-equity ratio of 0.29, a current ratio of 5.12 and a quick ratio of 4.99. The firm has a 50 day moving average price of $149.25.
SpaceX (NASDAQ:SPCX – Get Free Report) last released its earnings results on Tuesday, October 20th. The company reported $0.35 EPS for the quarter, topping analysts’ consensus estimates of $0.10 by $0.25. The firm had revenue of $14.57 billion for the quarter. The firm’s revenue for the quarter was up 161.4% on a year-over-year basis. During the same period last year, the business earned ($0.36) earnings per share. Equities analysts expect that SpaceX will post 0.07 earnings per share for the current fiscal year.
Insider Buying and Selling
In other SpaceX news, COO Gwynne Shotwell sold 342,170 shares of SpaceX stock in a transaction that occurred on Tuesday, September 22nd. The shares were sold at an average price of $153.57, for a total transaction of $52,547,046.90. Following the completion of the sale, the chief operating officer directly owned 2,472,035 shares in the company, valued at approximately $379,630,414.95. The trade was a 12.16% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.
Institutional Trading of SpaceX
Hedge funds and other institutional investors have recently made changes to their positions in the business. Syntax Research Inc. acquired a new position in SpaceX during the second quarter valued at $26,000. Atwood & Palmer Inc. purchased a new stake in SpaceX in the second quarter valued at $29,000. PayPay Securities Corp purchased a new stake in SpaceX in the second quarter valued at $30,000. Marquette Asset Management LLC acquired a new stake in SpaceX during the 2nd quarter worth about $32,000. Finally, Hickory Point Bank & Trust purchased a new position in shares of SpaceX during the 3rd quarter valued at about $30,000.
SpaceX Company Profile
Space Exploration Technologies Corp., commonly known as SpaceX, is a privately held aerospace company founded in 2002 by Elon Musk. The company develops and operates launch vehicles and spacecraft designed to reduce the cost of access to space and support commercial, government and scientific missions.
SpaceX’s principal products and services include the Falcon 9 and Falcon Heavy rockets, the Dragon spacecraft and the Starlink satellite communications network. Falcon rockets are used to launch satellites, cargo and crew, while Dragon spacecraft support transportation to and from low Earth orbit.