SpaceX (NASDAQ:SPCX) Trading 9.4% Higher Following Strong Earnings

Key Points

• SpaceX shares jumped 9.4% after the company reported quarterly EPS of a $0.09 loss, beating expectations for a $0.26 loss, alongside $7.81 billion in revenue.
• Starlink remained the primary growth and profit engine, generating about $4.29 billion in revenue, while AI-related activities contributed roughly $2.56 billion and helped support a backlog of approximately $47.5 billion.
• Investors face significant risks despite the earnings beat: AI operations reportedly lost about $1.26 billion, capital spending is rising, and roughly 911 million shares may become eligible for sale on August 6, potentially increasing volatility.

SpaceX (NASDAQ:SPCX - Get Free Report)'s stock price traded up 9.4% during mid-day trading on Tuesday following a stronger than expected earnings report. The company traded as high as $126.71 and last traded at $125.33. 126,607,159 shares were traded during mid-day trading, an increase of 23% from the average session volume of 102,527,750 shares. The stock had previously closed at $114.53.

The company reported ($0.09) earnings per share (EPS) for the quarter, beating analysts' consensus estimates of ($0.26) by $0.17. The firm had revenue of $7.81 billion during the quarter.

Trending Headlines about SpaceX

Here are the key news stories impacting SpaceX this week:

• Positive Sentiment: Starlink drove strong growth. Starlink generated approximately $4.29 billion in second-quarter revenue and remained SpaceX’s primary profit engine, supporting the investment case that satellite broadband can fund the company’s broader ambitions. SpaceX Stock Surges as Starlink Drives Revenue Growth
• Positive Sentiment: Results beat expectations. The revenue and earnings-per-share “double beat,” together with a reported backlog of about $47.5 billion, gave investors evidence of continued demand across launch, satellite connectivity, and computing services. SpaceX Q2 Highlights
• Positive Sentiment: AI and strategic partnerships are expanding the opportunity. Revenue from AI-related activities reached roughly $2.56 billion, supported in part by computing agreements with Anthropic and Google, although profitability remains unproven. SpaceX Revenue Growth from AI Deals and Starlink
• Neutral Sentiment: Large Tesla Megapack purchases signal substantial infrastructure investment. SpaceX spent $295 million on Megapacks in the second quarter and $329 million year to date, potentially supporting its energy-intensive AI and data-center plans but also adding to capital requirements. SpaceX Megapack Purchases
• Negative Sentiment: AI spending and capital expenditures are pressuring the stock. AI revenue was reportedly unprofitable, with the segment losing about $1.26 billion, while total capital expenditures surged. Investors are focused on whether Starlink’s margins can offset spending on AI, Starship, and other expansion projects. SpaceX Results Beat Expectations but AI Costs Hit Stock
• Negative Sentiment: A major lockup expiration could increase selling pressure. Approximately 911 million shares are expected to become eligible for sale on August 6, more than doubling the public float. The event, combined with roughly $24.6 billion in short interest, could amplify swings in either direction. SpaceX Earnings and Share Unlock

Analyst Upgrades and Downgrades

A number of equities analysts have commented on the stock. Zacks Research raised shares of SpaceX to a "hold" rating in a research note on Monday, June 15th. JPMorgan Chase & Co. initiated coverage on SpaceX in a research note on Tuesday, July 7th. They issued an "overweight" rating and a $225.00 target price on the stock. Evercore assumed coverage on SpaceX in a research note on Tuesday, July 14th. They set an "outperform" rating and a $230.00 price target for the company. Morgan Stanley reiterated an "overweight" rating on shares of SpaceX in a research report on Friday, July 24th. Finally, The Goldman Sachs Group assumed coverage on SpaceX in a research note on Tuesday, July 7th. They issued a "buy" rating and a $205.00 target price for the company. Four equities research analysts have rated the stock with a Strong Buy rating, twenty-four have assigned a Buy rating, nine have issued a Hold rating and two have assigned a Sell rating to the company's stock. According to MarketBeat.com, SpaceX has a consensus rating of "Moderate Buy" and an average price target of $230.50.

Institutional Inflows and Outflows

A number of hedge funds have recently bought and sold shares of the business. Atwood & Palmer Inc. purchased a new position in shares of SpaceX during the 2nd quarter worth approximately $29,000. Marquette Asset Management LLC purchased a new position in shares of SpaceX in the 2nd quarter valued at approximately $32,000. Burkett Financial Services LLC purchased a new position in shares of SpaceX in the 2nd quarter valued at approximately $70,000. Contravisory Investment Management Inc. bought a new stake in shares of SpaceX during the second quarter valued at approximately $73,000. Finally, Thurston Springer Miller Herd & Titak Inc. purchased a new stake in SpaceX in the second quarter worth $89,000.

SpaceX Stock Performance

SpaceX Company Profile

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

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