SpaceX shares rise as revenue growth, analyst ratings, and spending plans draw focus

Shares trade higher on Tuesday

MarketBeat reports that SpaceX stock rose 3.6% during Tuesday mid-day trading. The shares reached as high as $142.74 and last traded at $141.31, compared with a prior close of $136.37. About 71.4 million shares changed hands, which the report says was 30% below the average session volume of 102.6 million shares.

Reported business developments and revenue growth

The article says recent reporting around SpaceX’s talks with EchoStar and Boost Mobile renewed interest in a possible Starlink-linked wireless offering. MarketBeat says the discussion centers on either buying Boost Mobile or using its network, and that Boost’s current customer base could offer a faster path into wireless. The report also stresses that no deal has been confirmed.

MarketBeat also says the company’s latest quarterly results showed revenue up 161% from a year earlier to $14.58 billion. It notes that Starlink subscriber growth and expanding AI-computing revenue have supported the company’s growth narrative, and that management is planning a large increase in computing capacity.

Earnings, analyst views, and valuation metrics

According to MarketBeat, SpaceX reported quarterly earnings per share of $0.35 on October 20, beating the consensus estimate of $0.10 by $0.25. Revenue for the quarter was $14.57 billion, and the company reported a negative net margin of 8.61% and a negative return on equity of 3.24%. The article says earnings per share were negative $0.36 in the same quarter last year, and analysts on average expect full-year EPS of 0.19.

The report says several analysts recently updated their views. Wall Street Zen raised its rating from sell to hold on October 24. Pivotal Research increased its price target from $230 to $260 and reiterated a buy rating on October 21. Wolfe Research kept an outperform rating and set a $175 target on August 26. Arete Research set a $450 target on August 11. Moffett Nathanson raised its target from $131 to $142 and kept a neutral rating on September 14.

MarketBeat says the broader analyst breakdown includes four Strong Buy ratings, 30 Buy ratings, nine Hold ratings, and three Sell ratings. Based on its data, the stock carries a consensus rating of "Moderate Buy" and an average price target of $244.97. The report also lists a market cap of $1.92 trillion, a P/E ratio of 543.50, a 50-day moving average of $149.55, a current ratio of 3.08, a quick ratio of 3.00, and a debt-to-equity ratio of 0.20.

Spending plans, insider activity, and institutional buying

MarketBeat says investors may also be weighing reported spending plans. The article says SpaceX has raised its Q4 capital-spending forecast to $35 billion to $40 billion and is aiming for at least 13 GW of computing capacity by the end of 2027. It says the spending plans may lead investors to focus on funding needs, returns, and demand.

The report also says the Boost Mobile route carries execution risk because the business depends on network leases from incumbent carriers. In another item, MarketBeat notes that a finance professor said a successful Anthropic IPO could divert investor capital away from SpaceX.

On insider activity, the article 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, the report says she held 2,472,035 shares valued at $379,630,414.95, a 12.16% reduction in ownership. MarketBeat says the transaction was disclosed in an SEC filing and carried out under a pre-arranged Rule 10b5-1 plan.

The report also lists several institutional investors that bought new positions in the stock: Syntax Research Inc. in the second quarter, Atwood & Palmer Inc. in the second quarter, PayPay Securities Corp. in the second quarter, Hickory Point Bank & Trust in the third quarter, and Maryland Capital Advisors Inc. in the third quarter. The article gives estimated values of about $26,000, $29,000, $30,000, $30,000, and $30,000, respectively.

Company background

MarketBeat identifies Space Exploration Technologies Corp., or SpaceX, 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 its main products and services include the Falcon 9 and Falcon Heavy rockets, the Dragon spacecraft, and the Starlink satellite communications network, with Falcon rockets used for satellite, cargo, and crew launches and Dragon used for transport to and from low Earth orbit.