SpaceX (NASDAQ:SPCX) Stock Price Down 2.5% - What's Next?

Key Points

• SpaceX shares fell 2.5% to $167.60 in mid-day trading, with volume below the average session level.
• The proposed $40 billion Nvidia GPU purchase could expand SpaceX’s AI-compute business, but the debt required raises concerns about interest costs, chip utilization and execution.
• Analyst sentiment remains broadly positive, with a “Moderate Buy” consensus and an average price target of $218.76, although near-term pressure could come from rising Treasury yields, broader technology weakness and a potential share lock-up expiration.

Shares of SpaceX (NASDAQ:SPCX - Get Free Report) dropped 2.5% during mid-day trading on Wednesday. The stock traded as low as $165.65 and last traded at $167.60. Approximately 76,835,886 shares were traded 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.

Key Stories Impacting SpaceX

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

Analysts Set New Price Targets

A number of research analysts have recently issued reports on the company. Susquehanna boosted their price objective on SpaceX from $144.00 to $173.00 and gave the company a "neutral" rating in a research note on Wednesday. Citigroup lowered SpaceX from a "buy" rating to a "sell" rating in a research note on Friday, August 7th. William Blair reaffirmed an "outperform" rating on shares of SpaceX in a research report on Friday, September 11th. CLSA initiated coverage on shares of SpaceX in a research report on Monday, September 28th. They set an "outperform" rating and a $250.00 target price on the stock. Finally, UBS Group restated a "buy" rating on shares of SpaceX in a report on Tuesday, September 29th. Three investment analysts have rated the stock with a Strong Buy rating, twenty-seven have issued a Buy rating, eight have given a Hold rating and six have given a Sell rating to the stock. According to MarketBeat, the company has an average rating of "Moderate Buy" and an average price target of $218.76.

SpaceX Price Performance

The firm has a market cap of $2.21 trillion and a PE ratio of -1,862.22. The stock has a fifty day simple moving average of $141.88. The company has a debt-to-equity ratio of 0.29, a quick ratio of 4.99 and a current ratio of 5.12.

SpaceX (NASDAQ:SPCX - Get Free Report) last posted its earnings results on Tuesday, August 4th. The company reported ($0.09) EPS for the quarter, topping the consensus estimate of ($0.26) by $0.17. The business had revenue of $7.81 billion for the quarter. The firm's quarterly revenue was up 91.9% compared to the same quarter last year. On average, analysts forecast that SpaceX will post 0.09 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 that occurred on Tuesday, September 22nd. The stock was sold at an average price of $153.57, for a total value of $52,547,046.90. Following the transaction, 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 Securities & Exchange Commission, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

Hedge Funds Weigh In On SpaceX

Several large investors have recently bought and sold shares of the stock. North Point Portfolio Managers Corp OH bought a new stake in shares of SpaceX in the 3rd quarter worth $39,000. Strong Retirement Solutions LLC boosted its holdings in SpaceX by 37.1% during the third quarter. Strong Retirement Solutions LLC now owns 8,341 shares of the company's stock worth $1,258,000 after purchasing an additional 2,259 shares during the last quarter. McAlister Sweet & Associates Inc. increased its stake in SpaceX by 2.8% in the 3rd quarter. McAlister Sweet & Associates Inc. now owns 22,011 shares of the company's stock valued at $3,321,000 after buying an additional 592 shares during the last quarter. Crumly & Associates Inc. lifted its position in shares of SpaceX by 653.1% during the 3rd 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 purchased a new position in shares of SpaceX in the 3rd quarter worth approximately $230,000.

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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