SpaceX shares rise after slide as investors weigh 5G and merger concerns

Share move and trading activity

MarketBeat reports that SpaceX shares rose 8.6% on Friday. The stock traded as high as $135.32 and most recently changed hands at $134.27, after closing the previous session at $123.62. Midday volume reached 114,251,907 shares, which the report says was about 10% above the average session volume of 103,713,539 shares.

News items driving sentiment

The report says SpaceX was recovering after a two-day drop that had pushed the stock below its $135 IPO price. It adds that a broader rebound in technology shares was also helping the move, although that did not erase the worries tied to the earlier decline. MarketBeat says one positive factor was a planned Qualcomm partnership to build Starlink Mobile’s 5G network, with deployment expected to begin in 2027. The report presents that plan as a possible new growth path beyond satellite service. It also says Google reportedly bought additional SpaceX shares last quarter.

Concerns around permits, politics, and capital needs

MarketBeat says investors are still concerned about several issues. The report points to fears that new data-center construction could face delays or restrictions, which it says may matter for SpaceX’s AI expansion. It also says uncertainty remains around a possible Tesla–SpaceX merger. In addition, the report quotes Deutsche Telekom’s CEO as saying that competing with established carriers would require a costly land-based network, raising questions about how much capital would be needed to make the 5G effort work.

Analyst views and valuation data

The report says several research firms have issued ratings on SPCX. Needham & Company LLC reiterated a buy rating and set a $250 target on October 21. HSBC kept a hold rating on the same date. Moffett Nathanson raised its price target from $131 to $142 and maintained a neutral rating on September 14. Wolfe Research reaffirmed an outperform rating with a $175 target on August 26. UBS Group also reiterated an overweight rating and set a $300 target on October 21. MarketBeat says four analysts rate the stock Strong Buy, 31 rate it Buy, nine rate it Hold, and three rate it Sell. It adds that the consensus rating is Moderate Buy and the average target price is $243.60.

MarketBeat also lists several financial figures for the company. It says SpaceX has a current ratio of 3.08, a quick ratio of 3.00, and a debt-to-equity ratio of 0.20. The stock’s 50-day moving average is $149.32. The report puts market capitalization at $1.82 trillion and the price-to-earnings ratio at 516.42.

Latest earnings, insider activity, and institutional ownership

MarketBeat says SpaceX last reported quarterly results on Tuesday, October 20. The company reported earnings per share of $0.35, beating the consensus estimate of $0.10 by $0.25. Quarterly revenue was $14.57 billion. The report says net margin was negative 8.61% and return on equity was negative 3.24%. Revenue increased 161.4% from a year earlier, when the company posted a loss of $0.36 per share. Analysts, according to the report, expect SpaceX to earn $0.19 per share in the current fiscal year.

The report also says COO Gwynne Shotwell sold 342,170 shares on September 22 at an average price of $153.57, for total proceeds of $52,547,046.90. After the sale, it says she owned 2,472,035 shares valued at $379,630,414.95, a 12.16% reduction in her position. MarketBeat says the transaction was disclosed in an SEC filing and took place under a pre-arranged Rule 10b5-1 plan.

Several institutional investors also changed their holdings in the third quarter, according to the report. James T. Borello RIA increased its stake by 41.4% to 246 shares valued at $37,000. Oakworth Capital Inc. raised its position by 17.8% to 483 shares valued at $73,000. Fonville Wealth Management LLC increased its holdings by 3.8% to 2,719 shares valued at $410,000. Downshift Financial LLC lifted its stake by 25.7% to 553 shares valued at $83,000. Balance Wealth Partners LLC increased its position by 5.7% to 2,261 shares valued at $341,000.

Company background

MarketBeat describes SpaceX, formally Space Exploration Technologies Corp., as a privately held aerospace company founded in 2002 by Elon Musk. The report says the company develops and operates launch vehicles and spacecraft intended to lower the cost of access to space and support commercial, government, and scientific missions. It says SpaceX’s main products and services include the Falcon 9 and Falcon Heavy rockets, the Dragon spacecraft, and the Starlink satellite communications network.