SpaceX (NASDAQ:SPCX) Stock Jumps 7.6% - Still a Buy?

Key Points

• SpaceX shares surged 7.6% to $171.09 amid a busy launch schedule and heightened investor interest in its Starlink and AI-computing opportunities.
• Morgan Stanley maintained a buy-equivalent rating with a $300 price target, while the broader analyst consensus is “Moderate Buy” with a $218.68 target. However, some analysts remain cautious, citing valuation concerns and management-related risks.
• SpaceX reported 91.9% year-over-year revenue growth to $7.81 billion and beat quarterly EPS expectations, but its extremely high valuation and a substantial insider sale remain notable risks for investors.

SpaceX (NASDAQ:SPCX - Get Free Report)'s share price was up 7.6% during trading on Monday. The company traded as high as $172.47 and last traded at $171.09. 133,050,603 shares were traded during mid-day trading, an increase of 29% from the average session volume of 103,178,633 shares. The stock had previously closed at $158.96.

Key Stories Impacting SpaceX

Here are the key news stories impacting SpaceX this week:

• Positive Sentiment: Morgan Stanley reaffirmed its Buy-equivalent rating and $300 price target, saying SpaceX is “cheap and getting cheaper” on growth-adjusted metrics. The firm highlighted potential upside from Starlink, AI computing and solutions to power and chip shortages. Morgan Stanley reiterates $300 target
• Positive Sentiment: Investors are responding to SpaceX’s busy launch schedule. The company completed three launches in roughly 13 hours and is preparing to reattempt a U.S. Space Development Agency mission after a weather-related scrub. Recent crew and satellite missions also reached notable milestones. SpaceX to reattempt SDA mission
• Positive Sentiment: AI growth expectations are adding to the investment case. Bernstein estimates AI revenue could surge nearly 500% next year, while reports say SpaceX held talks with Microsoft about leasing AI-computing capacity. Musk also confirmed discussions with TSMC regarding a dedicated chipmaking facility serving his companies. Microsoft could become an AI customer
• Neutral Sentiment: SpaceX is rebranding its AI unit from SpaceXAI to SpaceXSI, reflecting Musk’s “super intelligence” focus. The move may reinforce the AI narrative, but it does not represent confirmed revenue or a customer contract. SpaceX becomes SpaceXSI
• Negative Sentiment: Valuation and management-related risks remain important. Commentary warns that SpaceX’s speculative valuation could make the stock vulnerable to negative publicity surrounding Elon Musk, particularly as he resumes cooperation with the U.S. government. Other analysts caution that substantial growth is already priced in. Musk and SpaceX stock risks

Wall Street Analysts Forecast Growth

Several research analysts recently issued reports on the company. Susquehanna cut SpaceX from a "neutral" rating to an "underperform" rating in a research report on Friday, August 7th. HSBC initiated coverage on SpaceX in a research note on Thursday, July 23rd. They issued a "hold" rating and a $115.00 price objective for the company. The Goldman Sachs Group reiterated a "buy" rating on shares of SpaceX in a research note on Tuesday, September 29th. TD Cowen began coverage on shares of SpaceX in a research report on Monday, September 28th. They set a "buy" rating and a $200.00 price target for the company. Finally, Zacks Research upgraded SpaceX to a "hold" rating in a research note on Monday, June 15th. Three research analysts have rated the stock with a Strong Buy rating, twenty-seven have assigned a Buy rating, seven have given a Hold rating and seven have issued a Sell rating to the company. According to data from MarketBeat, the stock has a consensus rating of "Moderate Buy" and a consensus target price of $218.68.

SpaceX Stock Performance

The company's 50 day simple moving average is $139.62. The company has a debt-to-equity ratio of 0.29, a current ratio of 5.12 and a quick ratio of 4.99. The company has a market cap of $2.26 trillion and a P/E ratio of -1,901.00.

SpaceX (NASDAQ:SPCX - Get Free Report) last issued its quarterly earnings data on Tuesday, August 4th. The company reported ($0.09) EPS for the quarter, beating the consensus estimate of ($0.26) by $0.17. The firm had revenue of $7.81 billion for the quarter. SpaceX's revenue was up 91.9% on a year-over-year basis. As a group, equities analysts forecast that SpaceX will post 0.02 EPS for the current fiscal year.

Insiders Place Their Bets

In other SpaceX news, COO Gwynne Shotwell sold 342,170 shares of the firm's 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 in the company, valued at $379,630,414.95. This trade represents a 12.16% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

Hedge Funds Weigh In On SpaceX

Large investors have recently modified their holdings of the company. Syntax Research Inc. purchased a new position in SpaceX in the 2nd quarter worth $26,000. Atwood & Palmer Inc. bought a new position in shares of SpaceX during the second quarter valued at about $29,000. PayPay Securities Corp purchased a new position in shares of SpaceX in the second quarter worth about $30,000. Hickory Point Bank & Trust bought a new stake in shares of SpaceX in the 3rd quarter valued at about $30,000. Finally, Marquette Asset Management LLC bought a new stake in shares of SpaceX in the 2nd quarter valued at about $32,000.

SpaceX Company Profile

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.

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