SpaceX (NASDAQ:SPCX) Shares Down 2.5% – Here’s Why

Shares of SpaceX (NASDAQ:SPCX) fell 2.5% on Wednesday. The stock traded as low as $165.65 and last traded at $167.60. Approximately 76,835,886 shares changed hands during mid-day trading, a decline of 25% from the average session volume of 102,879,930 shares. The stock had previously closed at $171.92.

SpaceX News Summary

Here are the key news stories impacting SpaceX this week:

• Positive Sentiment: SpaceX’s proposed Nvidia purchase could substantially expand its terrestrial AI-compute capacity. Supporters argue that Starlink cash flow and contracted AI capacity could help service the debt, while the additional infrastructure could create a major new revenue stream. Apollo, banks in talks to finance SpaceX’s $40 billion Nvidia GPU purchase
• Positive Sentiment: Analyst support remains a catalyst. Susquehanna raised its price target from $144 to $173 while maintaining a neutral rating, citing growth across SpaceX’s core businesses. Other bullish commentary has focused on Starlink surpassing 12 million subscribers and the long-term opportunity in AI infrastructure. Susquehanna raises SpaceX price target
• Positive Sentiment: Recent operating milestones continue to support the growth narrative. Starship Flight 14 reportedly reached low Earth orbit and deployed Starlink satellites, while the Crew-13 mission set a NASA speed record. These achievements could reinforce confidence in launch reliability and future launch cadence. SpaceX completed Starship Flight 14
• Neutral Sentiment: Proposed FAA and Department of Transportation rule changes could streamline rocket licensing and increase launch activity, potentially benefiting SpaceX. However, the rules remain subject to implementation and continued safety reviews. FAA proposes streamlined launch rules
• Negative Sentiment: The debt plan is the main source of investor concern. Borrowing an amount comparable to annual revenue to fund AI hardware raises questions about interest costs, execution, chip utilization and whether future AI cash flow will justify the investment. Analysts also warn that recent gains have left SPCX trading at a premium to its balance-sheet value. SpaceX seeks $40 billion in debt
• Negative Sentiment: Rising Treasury yields and broader weakness in technology stocks added pressure, while a potential 328-million-share lock-up expiration and ARK Invest’s reported $9.4 million reduction in its SpaceX position create additional near-term supply concerns. SpaceX share unlock concerns

Analyst Ratings Changes

SPCX has been the topic of a number of research analyst reports. The Goldman Sachs Group reissued a “buy” rating on shares of SpaceX in a report on Tuesday, September 29th. Argus raised shares of SpaceX from a “hold” rating to a “buy” rating and set a $160.00 price objective on the stock in a research report on Friday, August 7th. William Blair reissued an “outperform” rating on shares of SpaceX in a research report on Friday, September 11th. Zacks Research upgraded shares of SpaceX to a “hold” rating in a research note on Monday, June 15th. Finally, Susquehanna upped their price objective on SpaceX from $144.00 to $173.00 and gave the company a “neutral” rating in a research note on Wednesday. Three investment analysts have rated the stock with a Strong Buy rating, twenty-seven have given a Buy rating, eight have issued a Hold rating and six have assigned a Sell rating to the company’s stock. According to data from MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and an average target price of $218.76.

SpaceX Stock Down 2.5%

The firm’s 50-day moving average is $141.88. The firm has a market capitalization of $2.21 trillion and a P/E ratio of -1,862.22. The company has a current ratio of 5.12, a quick ratio of 4.99 and a debt-to-equity ratio of 0.29.

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

Insider Activity

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

Hedge Funds Weigh In On SpaceX

Hedge funds have recently bought and sold shares of the company. North Point Portfolio Managers Corp OH purchased a new stake in SpaceX in the 3rd quarter worth approximately $39,000. Strong Retirement Solutions LLC grew its position in shares of SpaceX by 37.1% during the 3rd quarter. Strong Retirement Solutions LLC now owns 8,341 shares of the company’s stock valued at $1,258,000 after purchasing an additional 2,259 shares in the last quarter. McAlister Sweet & Associates Inc. increased its holdings in shares of SpaceX by 2.8% in the third quarter. McAlister Sweet & Associates Inc. now owns 22,011 shares of the company’s stock worth $3,321,000 after purchasing an additional 592 shares during the period. Crumly & Associates Inc. raised its position in shares of SpaceX by 653.1% in the third quarter. Crumly & Associates Inc. now owns 26,669 shares of the company’s stock worth $4,023,000 after buying an additional 23,128 shares in the last quarter. Finally, Great Waters Wealth Management bought a new stake in SpaceX during the third quarter valued at $230,000.

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.