SpaceX (NASDAQ:SPCX) Trading Down 3.9% – Here’s Why

SpaceX (NASDAQ:SPCX)’s stock price dropped 3.9% during mid-day trading on Tuesday . The stock traded as low as $130.50 and last traded at $133.29. 107,987,463 shares changed hands during mid-day trading, a decline of 6% from the average daily volume of 114,733,375 shares. The stock had previously closed at $138.74.

SpaceX News Roundup

Here are the key news stories impacting SpaceX this week:

• Positive Sentiment: Musk said SpaceX’s AI revenue could surpass the combined revenue of its rocket and Starlink businesses as soon as September. Investors viewed the projection—alongside expected growth from Grok, Cursor and AI-compute infrastructure—as a potential catalyst for a much higher valuation. Elon Musk Says AI Revenue Will Eclipse the Rest of SpaceX
• Positive Sentiment: The company unveiled a new Grok release, increasing expectations that SpaceX can compete with Anthropic and OpenAI and build a high-margin software business. Morgan Stanley has argued that investors may be underestimating this opportunity and cited a bullish scenario as high as $600 per share. SpaceX’s New Grok AI Release
• Positive Sentiment: Recent operating momentum is supporting the bullish narrative. Quarterly revenue reached $7.81 billion, up 91.9% year over year, while the loss of $0.09 per share was narrower than expected. Starlink also passed 13 million consumer subscribers and 22 million monthly mobile users.
• Positive Sentiment: A successful Falcon 9 launch deployed 24 Starlink satellites, reinforcing execution in the company’s core connectivity business. Starlink also began accepting orders in Vietnam, expanding its international market opportunity. Starlink Starts Taking Orders in Vietnam
• Neutral Sentiment: SpaceX recovered above its $135 IPO price after a steep post-IPO decline, and short interest reportedly fell to about 11% of publicly traded shares from 34%. Reduced bearish positioning may support further momentum, but the rebound also reflects speculation and possible short covering.
• Negative Sentiment: The valuation remains extreme: SpaceX has a market capitalization near $1.91 trillion and a sharply negative reported P/E ratio. Analysts are deeply divided, with targets ranging from roughly $62 to $450, highlighting substantial uncertainty about execution and fair value.
• Negative Sentiment: Heavy AI and infrastructure spending is pressuring cash generation. Reports indicate approximately $25 billion of free-cash-flow consumption in six months, while revenue concentration and declining Starlink average revenue per user add further risks.
• Negative Sentiment: Upcoming insider share unlocks could create additional selling pressure, including a reported $42.5 billion tranche on August 21. Texas has also frozen broadband grants while investigating alleged favoritism involving satellite providers, creating a regulatory overhang for Starlink.

Wall Street Analysts Forecast Growth

A number of research analysts recently weighed in on SPCX shares. Stifel Nicolaus began coverage on SpaceX in a report on Tuesday, July 7th. They set a “buy” rating and a $190.00 target price on the stock. Oppenheimer raised their price target on SpaceX from $190.00 to $250.00 and gave the company an “outperform” rating in a report on Thursday, June 18th. Wall Street Zen raised shares of SpaceX from a “sell” rating to a “hold” rating in a research report on Saturday, August 8th. Piper Sandler decreased their price objective on shares of SpaceX from $156.00 to $140.00 and set a “neutral” rating on the stock in a report on Wednesday, August 5th. Finally, KeyCorp reissued a “sector weight” rating on shares of SpaceX in a research report on Tuesday, July 28th. Two research analysts have rated the stock with a Strong Buy rating, twenty-five have given a Buy rating, eight have assigned a Hold rating and five have issued a Sell rating to the company’s stock. According to data from MarketBeat.com, SpaceX presently has a consensus rating of “Moderate Buy” and a consensus target price of $229.00.

SpaceX Trading Down 2.1%

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 business’s 50 day simple moving average is $143.08. The stock has a market cap of $1.87 trillion and a price-to-earnings ratio of -1,592.70.

SpaceX (NASDAQ:SPCX) last posted its quarterly earnings data on Tuesday, August 4th. The company reported ($0.09) earnings per share for the quarter, topping the consensus estimate of ($0.26) by $0.17. The firm had revenue of $7.81 billion for the quarter. The company’s revenue was up 91.9% on a year-over-year basis. As a group, sell-side analysts forecast that SpaceX will post -0.15 EPS for the current fiscal year.

Institutional Trading of SpaceX

Several hedge funds and other institutional investors have recently bought and sold shares of SPCX. Hyperion Asset Management Ltd bought a new stake in SpaceX in the 2nd quarter valued at about $201,137,000. Abound Wealth Management bought a new position in shares of SpaceX during the second quarter worth approximately $350,000. Accel Wealth Management acquired a new stake in shares of SpaceX in the second quarter valued at approximately $203,000. Heck Capital Advisors LLC bought a new stake in shares of SpaceX in the second quarter valued at approximately $3,768,000. Finally, JFS Wealth Advisors LLC bought a new stake in shares of SpaceX in the second quarter valued at approximately $325,000.

About SpaceX

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.