SpaceX (NASDAQ:SPCX) Stock Price Down 3.4% - Should You Sell?

Key Points

• SpaceX shares fell 3.4% to $108.37 amid concerns about its high valuation, lack of profitability, rising short interest and a potential $100 billion insider share unlock.
• The company received approximately $1.6 billion in U.S. Space Force contracts for 18 Falcon 9 launches, while Starlink V3 progress strengthens its long-term growth prospects.
• Analyst sentiment remains broadly positive, with a “Moderate Buy” consensus and an average price target of $230.50, but investors are awaiting the company’s first public second-quarter earnings report on August 4 for evidence of sustainable revenue and spending control.

SpaceX (NASDAQ:SPCX - Get Free Report) fell 3.4% on Friday . The company traded as low as $107.57 and last traded at $108.37. Approximately 58,054,374 shares changed hands during trading, a decline of 43% from the average daily volume of 102,655,320 shares. The stock had previously closed at $112.20.

More SpaceX News

Here are the key news stories impacting SpaceX this week:

• Positive Sentiment: The U.S. Space Force awarded SpaceX two task orders worth approximately $1.6 billion for 18 Falcon 9 launches carrying national-security satellites through 2027. The contract adds significant, recurring government revenue and reinforces SpaceX’s strategic importance. SpaceX gets $1.6 billion US Space Force order for 18 Falcon 9 launches
• Positive Sentiment: A successful demonstration of next-generation Starlink V3 satellites and continued optimism about Starlink’s satellite-internet position support the long-term growth case. However, these developments may already be reflected in SpaceX’s valuation. Jim Cramer praises Starlink V3 progress
• Neutral Sentiment: Reports that Tesla could sell or separate its China business to facilitate a future Tesla-SpaceX merger have increased speculation around a potential combination. Elon Musk called the China-sale report “absurdly fake news,” making the merger an uncertain catalyst rather than a dependable valuation driver. Tesla weighs sale of China business to pave way for potential SpaceX merger
• Neutral Sentiment: A discarded SpaceX rocket stage is expected to collide with the Moon. The event is attracting attention but appears unlikely to materially affect SpaceX’s financial results unless it produces regulatory or reputational consequences. Discarded SpaceX rocket set for collision with the Moon
• Negative Sentiment: Short selling has risen ahead of SpaceX’s first public second-quarter earnings report on August 4. Investors are seeking evidence of sustainable revenue, profitability and control of heavy Starlink, Starship and AI spending. Why SpaceX stock remains under pressure ahead of earnings
• Negative Sentiment: Morgan Stanley warned that a potential $100 billion insider share unlock could sharply increase supply and pressure the stock. This concern, combined with SpaceX’s high valuation and lack of profitability, is limiting the impact of the new contract. Morgan Stanley warns SpaceX approaching its most dangerous moment
• Negative Sentiment: A five-star analyst at Phillip Securities rated SpaceX a sell, citing valuation and downside risk after the post-IPO decline. Bill Ackman similarly praised Starlink’s near-monopoly characteristics but said the stock is too expensive to buy, reinforcing investor caution. Analyst rates SpaceX stock a sell

Analyst Upgrades and Downgrades

Several equities analysts have recently commented on SPCX shares. Citigroup began coverage on SpaceX in a research note on Tuesday, July 7th. They set a "buy" rating and a $200.00 price target on the stock. KGI Securities lowered shares of SpaceX from an "outperform" rating to a "hold" rating in a research note on Monday, June 22nd. Moffett Nathanson initiated coverage on shares of SpaceX in a research report on Tuesday, July 7th. They set a "neutral" rating and a $131.00 target price on the stock. TD Cowen began coverage on shares of SpaceX in a report on Monday, June 22nd. They issued a "buy" rating for the company. Finally, Argus began coverage on shares of SpaceX in a research report on Friday, June 26th. They issued a "hold" rating for the company. Four investment analysts have rated the stock with a Strong Buy rating, twenty-four have assigned a Buy rating, nine have assigned a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat, SpaceX presently has an average rating of "Moderate Buy" and an average price target of $230.50.

SpaceX Stock Performance

SpaceX (NASDAQ:SPCX - Get Free Report) last announced its earnings results on Thursday, May 7th. The company reported ($1.27) EPS for the quarter. The business had revenue of $4.69 billion for the quarter.

Institutional Investors Weigh In On SpaceX

Several institutional investors have recently bought and sold shares of SPCX. Beacon Investment Advisory Services Inc. purchased a new stake in shares of SpaceX during the 2nd quarter valued at $174,000. Beaird Harris Wealth Management LLC acquired a new position in SpaceX during the 2nd quarter valued at about $120,000. Teamwork Financial Advisors LLC acquired a new position in SpaceX during the 2nd quarter valued at about $8,027,000. Cooper Financial Group purchased a new stake in SpaceX in the second quarter valued at about $950,000. Finally, Ebert Capital Management Inc. acquired a new stake in SpaceX in the second quarter worth about $647,000.

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.

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