SpaceX (NASDAQ:SPCX) Trading Down 13.6% – Here’s Why

SpaceX (NASDAQ:SPCX) was down 13.6% during mid-day trading on Wednesday . The stock traded as low as $106.66 and last traded at $108.27. 201,563,685 shares changed hands during mid-day trading, an increase of 91% from the average daily volume of 105,425,617 shares. The stock had previously closed at $125.33.

SpaceX News Roundup

Here are the key news stories impacting SpaceX this week:

• Positive Sentiment: AI and cloud momentum drove optimism. SpaceX reportedly secured up to $20.8 billion in AI cloud contracts, including a $6.7 billion agreement, while AI revenue more than tripled to approximately $2.56 billion. The contracts improve revenue visibility and support the company’s strategy to become a major computing provider. SpaceX Expands AI Cloud Business With $20.8 Billion in New Contracts
• Positive Sentiment: Quarterly results exceeded expectations. Revenue rose 91.9% year over year to $7.81 billion, and the quarterly loss of $0.09 per share was narrower than analysts expected. Starlink remains profitable, subscribers reportedly doubled to 12 million, and government and enterprise connectivity revenue continued to grow. Why SpaceX Stock Is Rising
• Positive Sentiment: Analyst support strengthened. Argus upgraded SpaceX to “buy” with a $160 price target, while JPMorgan and other firms raised targets or maintained bullish ratings. Investors are increasingly valuing SpaceX as an integrated space, connectivity and AI infrastructure company rather than solely as a rocket maker. Argus Upgrades SpaceX to Buy
• Neutral Sentiment: The lockup event was less disruptive than feared. Approximately 911 million shares became eligible for trading, more than doubling the public float. However, the stock held up as investors absorbed the supply and some shares remained restricted because performance-based conditions were not met. Additional unlocks through December remain an overhang. SpaceX Stock After Lockup Expiration
• Negative Sentiment: Heavy spending limits the bullish case. SpaceX spent roughly $18.4 billion during the quarter, including $15.8 billion on AI infrastructure, and remains GAAP-loss-making. Investors also face execution risk from the $16.8 billion Terafab project, uncertain cloud-contract economics and competition for Starlink Mobile from established wireless carriers.

Wall Street Analysts Forecast Growth

Several equities research analysts recently weighed in on the stock. Barclays upgraded shares of SpaceX from an “underweight” rating to an “overweight” rating in a research note on Monday, June 22nd. UBS Group reiterated a “buy” rating on shares of SpaceX in a research report on Wednesday. The Goldman Sachs Group assumed coverage on shares of SpaceX in a research note on Tuesday, July 7th. They issued a “buy” rating and a $205.00 target price on the stock. TD Cowen began coverage on shares of SpaceX in a research note on Monday, June 22nd. They set a “buy” rating for the company. Finally, Wedbush started coverage on SpaceX in a research note on Tuesday, June 30th. They issued an “outperform” rating and a $190.00 price objective on the stock. Two equities research analysts have rated the stock with a Strong Buy rating, twenty-five have given a Buy rating, eight have given a Hold rating and five have issued a Sell rating to the company’s stock. Based on data from MarketBeat, the company currently has a consensus rating of “Moderate Buy” and a consensus price target of $227.31.

SpaceX Trading Up 15.8%

The company has a current ratio of 1.22, a quick ratio of 1.11 and a debt-to-equity ratio of 0.83.

SpaceX (NASDAQ:SPCX) last released its quarterly earnings results on Tuesday, August 4th. The company reported ($0.09) EPS for the quarter, beating analysts’ consensus estimates of ($0.26) by $0.17. The firm had revenue of $7.81 billion during the quarter. The company’s revenue for the quarter was up 91.9% compared to the same quarter last year. As a group, sell-side analysts expect that SpaceX will post -0.64 earnings per share for the current fiscal year.

Institutional Investors Weigh In On SpaceX

A number of hedge funds and other institutional investors have recently bought and sold shares of SPCX. Atwood & Palmer Inc. bought a new stake in shares of SpaceX during the second quarter worth $29,000. Marquette Asset Management LLC acquired a new position in SpaceX during the 2nd quarter worth about $32,000. Burkett Financial Services LLC bought a new stake in SpaceX during the 2nd quarter worth about $70,000. Contravisory Investment Management Inc. acquired a new stake in SpaceX in the 2nd quarter valued at about $73,000. Finally, Thurston Springer Miller Herd & Titak Inc. acquired a new stake in SpaceX in the 2nd quarter valued at about $89,000.

SpaceX Company Profile

SpaceX, or Space Exploration Technologies Corp., is an American aerospace company focused on the design, manufacture and launch of advanced rockets and spacecraft. The company develops launch vehicles and space systems used for commercial, government and scientific missions, with a strong emphasis on lowering the cost of access to space through reusable rocket technology.

Founded in 2002 by Elon Musk, SpaceX has built a broad portfolio of products and services that includes the Falcon 9 and Falcon Heavy rockets, the Dragon spacecraft and the Starship development program.