SpaceX (NASDAQ:SPCX) Stock Falls 6.4% – What’s Next?

SpaceX (NASDAQ:SPCX) shares fell 6.4% during trading on Friday. The stock traded as low as $134.50 and last traded at $134.72. Approximately 120,939,937 shares changed hands during mid-day trading, an increase of 17% from the average session volume of 103,113,711 shares. The stock had previously closed at $143.89.

SpaceX News Summary

Here are the key news stories impacting SpaceX this week:

• Positive Sentiment: SpaceX’s AI business remains the main bullish catalyst. Reports say Anthropic accounted for more than one-third of third-quarter revenue, while analysts highlighted accelerating AI revenue, Nvidia demand and the potential for substantial long-term data-center growth. However, the customer’s contract can reportedly be canceled with 90 days’ notice after early 2027. Anthropic reportedly becomes SpaceX’s top customer
• Positive Sentiment: Starlink continues to expand, adding 1.6 million customers in the third quarter, with average revenue per user also increasing. SpaceX also launched Ukraine’s first OBRIA test satellite, reinforcing Falcon 9’s commercial and government demand. Starlink added customers
• Neutral Sentiment: Elon Musk’s comments about a possible Tesla-SpaceX combination generated investor interest, but the idea remains speculative and would face difficult shareholder, regulatory and governance hurdles. Questions about a possible Tesla-SpaceX merger
• Negative Sentiment: A broader technology selloff was intensified by weak forward guidance from Intel and renewed concerns that AI infrastructure spending may outpace sustainable demand. SpaceX is spending heavily to build computing capacity, increasing execution and return-on-capital risks. Tech earnings pressure SpaceX shares
• Negative Sentiment: Investors are increasingly focused on the estimated $130 billion that SpaceX might need to build a nationwide wireless network, despite nearly $28 billion in spectrum-related deals. T-Mobile is opposing proposed spectrum-rule changes, adding competitive and regulatory uncertainty. Estimated cost of SpaceX wireless expansion
• Negative Sentiment: SpaceX’s valuation remains demanding, while potential insider share unlocks could increase supply. The company also faces reputational and customer-mix concerns after a Ukrainian defense contractor said it can complete missions without SpaceX satellite services. Ukrainian arms maker reduces reliance on SpaceX

Analyst Ratings Changes

A number of research analysts recently issued reports on the company. Royal Bank Of Canada reaffirmed an “outperform” rating on shares of SpaceX in a report on Monday, October 19th. UBS Group reiterated an “overweight” rating and set a $300.00 target price on shares of SpaceX in a research note on Wednesday, October 21st. Weiss Ratings initiated coverage on SpaceX in a research report on Tuesday, September 1st. They set a “sell (d)” rating for the company. Evercore reaffirmed an “outperform” rating and issued a $275.00 target price on shares of SpaceX in a report on Friday, October 16th. Finally, Seaport Research Partners downgraded shares of SpaceX from a “buy” rating to a “neutral” rating in a research report on Friday, August 7th. Four research analysts have rated the stock with a Strong Buy rating, thirty have given a Buy rating, nine have given a Hold rating and three have assigned a Sell rating to the company. According to MarketBeat.com, SpaceX has a consensus rating of “Moderate Buy” and an average target price of $244.97.

SpaceX Price Performance

The company has a current ratio of 3.08, a quick ratio of 3.00 and a debt-to-equity ratio of 0.20. The firm has a market capitalization of $1.78 trillion and a price-to-earnings ratio of 518.15. The company’s 50 day moving average is $149.55.

SpaceX (NASDAQ:SPCX) last announced its earnings results on Tuesday, October 20th. The company reported $0.35 earnings per share for the quarter, beating analysts’ consensus estimates of $0.10 by $0.25. The business had revenue of $14.57 billion during the quarter. SpaceX had a negative net margin of 8.61% and a negative return on equity of 3.24%. SpaceX’s quarterly revenue was up 161.4% on a year-over-year basis. During the same quarter in the prior year, the firm posted ($0.36) earnings per share. Equities research analysts anticipate that SpaceX will post 0.13 earnings per share for the current year.

Insider Activity

In related news, COO Gwynne Shotwell sold 342,170 shares of SpaceX stock in a transaction dated 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 transaction, the chief operating officer directly owned 2,472,035 shares of the company’s stock, valued at approximately $379,630,414.95. The trade was a 12.16% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

Institutional Trading of SpaceX

A number of institutional investors have recently modified their holdings of SPCX. James T. Borello RIA raised its stake in shares of SpaceX by 41.4% in the third quarter. James T. Borello RIA now owns 246 shares of the company’s stock worth $37,000 after purchasing an additional 72 shares during the last quarter. Oakworth Capital Inc. increased its position in SpaceX by 17.8% during the third quarter. Oakworth Capital Inc. now owns 483 shares of the company’s stock worth $73,000 after purchasing an additional 73 shares during the last quarter. Fonville Wealth Management LLC lifted its stake in shares of SpaceX by 3.8% in the 3rd quarter. Fonville Wealth Management LLC now owns 2,719 shares of the company’s stock valued at $410,000 after purchasing an additional 99 shares during the last quarter. Downshift Financial LLC boosted its position in shares of SpaceX by 25.7% during the third quarter. Downshift Financial LLC now owns 553 shares of the company’s stock worth $83,000 after buying an additional 113 shares during the period. Finally, Balance Wealth Partners LLC increased its stake in SpaceX by 5.7% during the third quarter. Balance Wealth Partners LLC now owns 2,261 shares of the company’s stock worth $341,000 after purchasing an additional 121 shares during the period.

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.