SpaceX (NASDAQ:SPCX) Shares Up 5.2% - Should You Buy?

Key Points

• SpaceX shares rose 5.2% to $150.88, supported by optimism around its upcoming Starship orbital test, expanding defense contracts, and a reported AI-hosting agreement worth more than $1 billion per month.
• Analysts remain broadly bullish, with a “Moderate Buy” consensus and an average price target of $221.42; however, projections depend on successful Starship commercialization, Starlink growth, and unproven orbital AI infrastructure.
• Key risks include approximately 328 million shares becoming eligible for sale on September 24, potentially increasing selling pressure, as well as SpaceX’s exceptionally high valuation and substantial spending on unproven technology initiatives.

Shares of SpaceX (NASDAQ:SPCX - Get Free Report) rose 5.2% during mid-day trading on Wednesday . The stock traded as high as $153.01 and last traded at $150.88. Approximately 107,725,150 shares changed hands during mid-day trading, an increase of 4% from the average daily volume of 103,586,844 shares. The stock had previously closed at $143.49.

More SpaceX News

Here are the key news stories impacting SpaceX this week:

• Positive Sentiment: SpaceX plans to launch Starship Flight 14 on September 22 in its first attempt to place the vehicle’s upper stage into orbit and deploy Starlink V3 satellites. A successful mission could improve confidence in reusable launches, Starlink expansion and future launch revenue. Reuters Starship orbital test article
• Positive Sentiment: Reports highlighted SpaceX’s growing defense business, including approximately $8.05 billion in announced awards, Starshield contracts and a potential role in the Pentagon’s Golden Dome missile-defense plans. Confirmation that the U.S. has space-based weapons further supports demand for military space services. Space weapons and SpaceX article
• Positive Sentiment: SpaceX reportedly secured an AI-hosting agreement worth more than $1 billion per month beginning December 1, adding to optimism that its computing infrastructure could diversify revenue beyond launches and Starlink. SpaceX AI hosting deal article
• Positive Sentiment: ARK Invest’s Cathie Wood called SpaceX undervalued despite its extremely high sales multiple, arguing that Starship, orbital data centers and other businesses could eventually support annual revenue approaching $10 trillion. Longtime investor Ron Baron also said he would support a Tesla-SpaceX merger if Elon Musk pursues one. Cathie Wood SpaceX revenue projection article
• Neutral Sentiment: Analysts remain divided: bullish projections depend on successful Starship commercialization, rapid Starlink subscriber growth and orbital AI infrastructure, while skeptics view the valuation as difficult to justify using current revenue.
• Negative Sentiment: Approximately 328 million additional shares are expected to become eligible for sale on September 24, with further lockup expirations through 2027. Potential insider selling could increase the supply of SPCX shares and create near-term price pressure. SpaceX share unlock article
• Negative Sentiment: SpaceX is committing substantial capital to AI and orbital data-center plans, which remain unproven technologically. Any Starship setback or failure to commercialize these projects would expose the stock’s exceptionally high valuation.

Analysts Set New Price Targets

A number of equities analysts have commented on SPCX shares. New Street Research upgraded SpaceX to a "strong-buy" rating in a research note on Thursday, June 11th. Mizuho assumed coverage on SpaceX in a report on Tuesday, July 7th. They set an "outperform" rating and a $200.00 target price on the stock. JPMorgan Chase & Co. assumed coverage on SpaceX in a research report on Tuesday, July 7th. They issued an "overweight" rating and a $225.00 price target on the stock. Canaccord Genuity Group began coverage on SpaceX in a research note on Tuesday, July 7th. They issued a "buy" rating and a $246.00 price target for the company. Finally, Piper Sandler cut their price objective on shares of SpaceX from $156.00 to $140.00 and set a "neutral" rating for the company in a research report on Wednesday, August 5th. Two research analysts have rated the stock with a Strong Buy rating, twenty-six have assigned a Buy rating, eight have given a Hold rating and seven have issued a Sell rating to the company. According to data from MarketBeat, the company currently has a consensus rating of "Moderate Buy" and an average price target of $221.42.

SpaceX Stock Up 5.2%

The stock has a 50 day moving average price of $134.43. The company has a debt-to-equity ratio of 0.29, a quick ratio of 4.99 and a current ratio of 5.12. The firm has a market capitalization of $1.97 trillion and a PE ratio of -1,676.44.

SpaceX (NASDAQ:SPCX - Get Free Report) last announced its quarterly earnings results on Tuesday, August 4th. The company reported ($0.09) earnings per share (EPS) for the quarter, beating the consensus estimate of ($0.26) by $0.17. The company had revenue of $7.81 billion for the quarter. The business's revenue for the quarter was up 91.9% compared to the same quarter last year. As a group, analysts predict that SpaceX will post -0.15 earnings per share for the current fiscal year.

Institutional Investors Weigh In On SpaceX

Hedge funds have recently modified their holdings of the company. Syntax Research Inc. acquired a new stake in shares of SpaceX during the second quarter valued at about $26,000. Atwood & Palmer Inc. acquired a new position in shares of SpaceX in the second quarter valued at approximately $29,000. PayPay Securities Corp bought a new position in SpaceX in the 2nd quarter valued at approximately $30,000. Marquette Asset Management LLC acquired a new stake in SpaceX during the 2nd quarter worth approximately $32,000. Finally, Community Bank N.A. acquired a new stake in SpaceX during the 2nd quarter worth approximately $38,000.

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, serving commercial, government and scientific customers.

SpaceX's principal products include the Falcon 9 and Falcon Heavy rockets, which are used to launch satellites, spacecraft and other payloads into orbit. The company also develops the Dragon spacecraft, which supports cargo and crew missions to low Earth orbit, including missions for NASA and other customers.

Through its Starlink business, SpaceX operates a large constellation of low Earth orbit satellites that provides broadband internet service to customers in numerous countries and regions.

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