SpaceX (NASDAQ:SPCX) Stock Falls 4.2% – Here’s Why

Shares of SpaceX (NASDAQ:SPCX) dropped 4.2% on Tuesday. The company traded as low as $156.05 and last traded at $156.54. Approximately 68,165,867 shares changed hands during mid-day trading, a decline of 33% from the average daily volume of 101,614,898 shares. The stock had previously closed at $163.42.

SpaceX News Summary

Here are the key news stories impacting SpaceX this week:

• Positive Sentiment: Starlink continues to expand commercially. United Airlines now offers Starlink Wi-Fi on more than 635 aircraft—nearly half its fleet—while American Airlines plans installations on more than 1,030 aircraft. The rollout supports Starlink’s potential to become a larger recurring-revenue business. SpaceX expands Starlink with United Airlines
• Positive Sentiment: Google reportedly agreed to rent SpaceX computing capacity for approximately $920 million per month under a 33-month contract worth up to $30 billion. Investors view the deal as potential validation of SpaceX’s AI and orbital data-center strategy, although the full value is not guaranteed. Google SpaceX computing contract
• Positive Sentiment: Analysts remain bullish, with Morgan Stanley maintaining a $300 target and Raymond James reiterating a Strong Buy rating with an $800 target. These forecasts reflect optimism about Starlink, launch services, AI infrastructure, and future mobile connectivity. Morgan Stanley SpaceX price target
• Neutral Sentiment: Reports continue to speculate that SpaceX and Tesla could announce a merger before December. Barclays raised the possibility, but neither company has confirmed negotiations, and prediction markets reportedly assign low odds to an imminent deal. Tesla SpaceX merger speculation
• Negative Sentiment: Ukraine says new speed restrictions on military Starlink terminals disrupted drone operations. Elon Musk blamed the U.S. government and President Trump, while reports say service was later partially restored. The episode raises reputational, regulatory, customer-retention, and government-contract risks for SpaceX’s satellite business. Musk comments on Ukraine Starshield restrictions
• Negative Sentiment: Investors are also concerned about valuation and execution. SpaceX is pursuing expensive wireless, AI, chip-manufacturing, and space-infrastructure projects, reportedly seeking as much as $40 billion in new debt. An upcoming insider share unlock of up to 1.3 billion shares could add further selling pressure. SpaceX capital requirements

Analyst Upgrades and Downgrades

A number of research analysts have recently weighed in on SPCX shares. William Blair reissued an “outperform” rating on shares of SpaceX in a research report on Friday, October 9th. Citigroup downgraded SpaceX from a “buy” rating to a “sell” rating in a report on Friday, August 7th. Sanford C. Bernstein reiterated a “buy” rating on shares of SpaceX in a report on Monday, September 28th. Daiwa Securities Group started coverage on SpaceX in a research note on Thursday, July 2nd. They set a “neutral” rating and a $175.00 price objective for the company. Finally, Wells Fargo & Company reduced their price target on shares of SpaceX from $215.00 to $212.00 and set an “overweight” rating on the stock in a research report on Tuesday, September 8th. Three research analysts have rated the stock with a Strong Buy rating, twenty-eight have given a Buy rating, nine have given a Hold rating and five have assigned a Sell rating to the company. According to data from MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and an average price target of $220.06.

SpaceX Stock Down 2.3%

The stock has a market capitalization of $1.96 trillion and a PE ratio of -1,653.00. The business’s fifty day moving average is $147.51. The company has a debt-to-equity ratio of 0.29, a quick ratio of 4.99 and a current ratio of 5.12.

SpaceX (NASDAQ:SPCX) last released its quarterly earnings results on Tuesday, August 4th. The company reported ($0.09) earnings per share (EPS) for the quarter, topping the consensus estimate of ($0.26) by $0.17. The firm had revenue of $7.81 billion for the quarter. SpaceX’s quarterly revenue was up 91.9% on a year-over-year basis. Sell-side analysts predict that SpaceX will post 0.07 EPS for the current fiscal year.

Insider Buying and Selling at SpaceX

In other SpaceX news, COO Gwynne Shotwell sold 342,170 shares of the firm’s stock in a transaction dated Tuesday, September 22nd. The stock was sold at an average price of $153.57, for a total transaction of $52,547,046.90. Following the transaction, the chief operating officer directly owned 2,472,035 shares in the company, valued at $379,630,414.95. This trade represents a 12.16% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

Institutional Investors Weigh In On SpaceX

A number of hedge funds and other institutional investors have recently made changes to their positions in SPCX. SC US Ttgp LTD. purchased a new stake in SpaceX in the second quarter worth about $20,933,621,000. Darsana Capital Partners LP purchased a new stake in shares of SpaceX in the 2nd quarter worth approximately $17,335,783,000. K5 Global Advisor LLC bought a new stake in SpaceX in the second quarter worth $6,587,531,000. State Street Corp purchased a new position in shares of SpaceX in the 2nd quarter worth about $1,858,329,000. Finally, Dragoneer Investment Group LLC bought a new position in shares of SpaceX in the second quarter worth approximately $1,366,880,000.

About SpaceX

Space Exploration Technologies Corp. (SpaceX) is a privately held aerospace company founded in 2002 by Elon Musk. The company develops and operates launch vehicles, spacecraft and satellite systems designed to reduce the cost of access to space and support commercial, government and scientific missions.

SpaceX’s primary products and services include the Falcon 9 and Falcon Heavy launch vehicles, the Dragon spacecraft and the Starlink satellite internet network. The company also is developing Starship, a fully reusable launch and spacecraft system intended for missions to Earth orbit, the Moon and Mars.