SpaceX (NASDAQ:SPCX) Shares Down 9.1% – Here’s What Happened

SpaceX (NASDAQ:SPCX)’s share price dropped 9.1% during trading on Thursday. The stock traded as low as $143.21 and last traded at $144.75. 194,023,245 shares traded hands during trading, an increase of 88% from the average session volume of 103,053,352 shares. The stock had previously closed at $159.31.

Key SpaceX News

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

Wall Street Analysts Forecast Growth

A number of research analysts have issued reports on the company. Barclays boosted their price target on SpaceX from $254.00 to $300.00 and gave the company an “overweight” rating in a report on Wednesday. Daiwa Securities Group began coverage on shares of SpaceX in a report on Thursday, July 2nd. They set a “neutral” rating and a $175.00 target price for the company. Evercore reiterated an “outperform” rating and issued a $275.00 target price on shares of SpaceX in a research note on Friday, October 16th. Wells Fargo & Company increased their price target on shares of SpaceX from $214.00 to $274.00 and gave the stock an “overweight” rating in a report on Wednesday. Finally, Argus upgraded SpaceX from a “hold” rating to a “buy” rating and set a $160.00 target price on the stock in a research report on Friday, August 7th. Three research analysts have rated the stock with a Strong Buy rating, thirty have issued a Buy rating, nine have given a Hold rating and four have issued a Sell rating to the company. According to data from MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and a consensus target price of $244.19.

SpaceX Stock Down 9.1%

The company has a quick ratio of 4.99, a current ratio of 5.12 and a debt-to-equity ratio of 0.29. The stock has a market cap of $1.91 trillion and a price-to-earnings ratio of -1,608.33. The firm has a 50-day simple moving average of $149.25.

SpaceX (NASDAQ:SPCX) last posted its quarterly earnings data on Tuesday, October 20th. The company reported $0.35 EPS for the quarter, beating the consensus estimate of $0.10 by $0.25. The business had revenue of $14.57 billion during the quarter. The business’s revenue for the quarter was up 161.4% on a year-over-year basis. During the same period last year, the firm posted ($0.36) earnings per share. Equities research analysts expect that SpaceX will post 0.07 earnings per share for the current year.

Insider Activity at SpaceX

In other news, COO Gwynne Shotwell sold 342,170 shares of the firm’s stock in a transaction on Tuesday, September 22nd. The shares were sold at an average price of $153.57, for a total value of $52,547,046.90. Following the sale, the chief operating officer directly owned 2,472,035 shares in the company, valued at approximately $379,630,414.95. This trade represents a 12.16% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

Institutional Inflows and Outflows

A number of hedge funds have recently modified their holdings of the stock. BIP Wealth LLC increased its position in SpaceX by 479.2% during the third quarter. BIP Wealth LLC now owns 12,197 shares of the company’s stock worth $1,840,000 after buying an additional 10,091 shares in the last quarter. Private Wealth Partners LLC acquired a new stake in shares of SpaceX during the 3rd quarter worth about $2,125,000. NovaPoint Capital LLC acquired a new stake in shares of SpaceX during the 3rd quarter worth about $390,000. MBL Wealth LLC purchased a new stake in shares of SpaceX during the third quarter worth about $567,000. Finally, Insight Advisors LLC PA grew its holdings in shares of SpaceX by 47.3% during the third quarter. Insight Advisors LLC PA now owns 3,203 shares of the company’s stock worth $483,000 after buying an additional 1,029 shares in the last quarter.

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.