SpaceX (NASDAQ:SPCX) Stock Falls 6.4% – Here’s What Happened

SpaceX (NASDAQ:SPCX) dropped 6.4% during mid-day trading on Friday. The stock traded as low as $134.50 and last traded at $134.72. 120,939,937 shares traded hands during mid-day trading, an increase of 17% from the average daily volume of 103,113,711 shares. The stock had previously closed at $143.89.

Key Stories Impacting SpaceX

Here are the key news stories impacting SpaceX this week:

• Positive Sentiment: SpaceX’s AI business remains a major growth catalyst. Reports indicate that Anthropic became its largest customer and accounted for more than one-third of third-quarter revenue, while SpaceX is reportedly benefiting from substantial demand for Nvidia-powered computing capacity. Anthropic Reportedly Becomes SpaceX’s Top Customer
• Positive Sentiment: Analysts continue to highlight SpaceX’s strong long-term prospects, including rapid AI growth, Starlink expansion and potential demand from Anthropic and other enterprise customers. The company’s AI revenue reportedly rose sharply in the third quarter, supporting the view that SpaceX is evolving beyond launch services. SpaceX vs. Nvidia
• Positive Sentiment: SpaceX launched Ukraine’s first OBRIA test satellite, reinforcing Falcon 9’s commercial launch capabilities and its role in developing independent communications networks. SPCX Launches Satellite for Ukraine’s Communications
• Neutral Sentiment: Speculation about a Tesla-SpaceX combination continues after Elon Musk called a merger strategically attractive, but the proposal would face difficult shareholder-approval, regulatory and governance hurdles. Questions Before a Possible Tesla and SpaceX Merger
• Negative Sentiment: Investors are concerned that SpaceX’s wireless ambitions could require approximately $130 billion beyond its reported spectrum commitments to compete with T-Mobile. T-Mobile also rejected the idea of a broader SpaceX deal, increasing uncertainty around the strategy. SpaceX’s Spectrum Deals May Not Be Enough
• Negative Sentiment: Intel’s cautious guidance intensified concerns about technology spending and AI infrastructure demand, weighing on SpaceX despite the company’s strong growth narrative. Heavy planned capital expenditures make SpaceX particularly sensitive to a broader pullback in AI investment. Why SpaceX Stock Dropped Today
• Negative Sentiment: Anthropic’s importance creates customer-concentration risk: although its reported SpaceX contract could be worth up to $120.5 billion, it may be cancellable with 90 days’ notice after the initial term. Investors are therefore questioning how durable the AI revenue pipeline is. Anthropic Contracts and SpaceX
• Negative Sentiment: SpaceX also faces potential selling pressure as billions of shares have become eligible to trade following IPO lockup releases. That supply overhang, combined with a very demanding valuation and ongoing GAAP losses, is limiting investor enthusiasm. SpaceX Insider Share Unlocks

Analyst Ratings Changes

A number of equities research analysts recently weighed in on SPCX shares. Susquehanna lifted their target price on SpaceX from $173.00 to $176.00 and gave the stock a “neutral” rating in a research report on Wednesday, October 21st. Needham & Company LLC reaffirmed a “buy” rating and issued a $250.00 price target on shares of SpaceX in a report on Wednesday, October 21st. TD Cowen raised their price objective on SpaceX from $200.00 to $224.00 and gave the stock a “buy” rating in a research report on Wednesday, October 21st. Yorkville Ives initiated coverage on SpaceX in a report on Tuesday, October 6th. They set an “outperform” rating and a $225.00 price objective on the stock. Finally, CLSA started coverage on SpaceX in a research report on Monday, September 28th. They set an “outperform” rating and a $250.00 price objective on the stock. Four investment analysts have rated the stock with a Strong Buy rating, thirty have given a Buy rating, nine have assigned a Hold rating and three have assigned a Sell rating to the company’s stock. Based on data from MarketBeat.com, the company has a consensus rating of “Moderate Buy” and a consensus price target of $244.97.

SpaceX Stock Down 6.4%

The stock’s 50-day simple moving average is $149.56. The company has a market cap of $1.83 trillion and a PE ratio of 518.15. The company has a debt-to-equity ratio of 0.20, a current ratio of 3.08 and a quick ratio of 3.00.

SpaceX (NASDAQ:SPCX) last released its quarterly earnings data on Tuesday, October 20th. The company reported $0.35 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.10 by $0.25. The firm had revenue of $14.57 billion during the quarter. SpaceX had a negative return on equity of 3.24% and a negative net margin of 8.61%. The business’s revenue was up 161.4% compared to the same quarter last year. During the same quarter in the prior year, the company earned ($0.36) earnings per share. On average, sell-side analysts forecast that SpaceX will post 0.19 earnings per share for the current year.

Insider Activity

In related news, COO Gwynne Shotwell sold 342,170 shares of the stock in a transaction dated Tuesday, September 22nd. The shares were sold at an average price of $153.57, for a total transaction of $52,547,046.90. Following the completion of 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 position. The sale was disclosed in a document filed with the SEC, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Viking Fund Management LLC bought a new stake in shares of SpaceX during the third quarter worth $1,358,000. Diversify Advisory Services LLC raised its holdings in shares of SpaceX by 34.0% during the third quarter. Diversify Advisory Services LLC now owns 48,477 shares of the company’s stock worth $7,205,000 after acquiring an additional 12,292 shares during the period. Wedbush Securities Inc. bought a new stake in SpaceX in the 2nd quarter valued at $5,094,000. Avior Wealth Management LLC bought a new position in SpaceX during the 3rd quarter worth about $2,934,000. Finally, Apella Capital LLC increased its holdings in SpaceX by 218.2% during the 3rd quarter. Apella Capital LLC now owns 8,424 shares of the company’s stock worth $1,412,000 after purchasing an additional 5,777 shares in the last quarter.

About SpaceX

Space Exploration Technologies Corp., commonly known as SpaceX, is a privately held aerospace company founded in 2002 by Elon Musk. The company develops and operates launch vehicles and spacecraft designed to reduce the cost of access to space and support commercial, government and scientific missions.

SpaceX’s principal products and services include the Falcon 9 and Falcon Heavy rockets, the Dragon spacecraft and the Starlink satellite communications network. Falcon rockets are used to launch satellites, cargo and crew, while Dragon spacecraft support transportation to and from low Earth orbit.