SpaceX (NASDAQ:SPCX) Shares Gap Down – Should You Sell?

SpaceX (NASDAQ:SPCX) shares gapped down prior to trading on Wednesday . The stock had previously closed at $125.33, but opened at $112.37. SpaceX shares last traded at $112.03, with a volume of 40,201,506 shares trading hands.

SpaceX News Roundup

Here are the key news stories impacting SpaceX this week:

• Positive Sentiment: SpaceX reported second-quarter revenue of $7.81 billion, up 91.9% year over year, and an adjusted loss of $0.09 per share—better than the $0.26 loss analysts expected. Growth was driven by Starlink and AI cloud contracts. SpaceX Beats Q2 Earnings Estimates on AI Cloud and Starlink Growth
• Positive Sentiment: Management highlighted substantial future demand, including additional cloud-service contracts that begin ramping in October, a $47.5 billion backlog and ambitions to reach a $100 billion annualized revenue run rate by December. SpaceX’s AI spending unnerves Wall Street despite promises of quick payoff
• Positive Sentiment: Several analysts maintained bullish ratings, including Needham at a $250 target and Cantor Fitzgerald at $246, citing Starlink expansion, AI growth and long-term opportunities in space infrastructure.
• Neutral Sentiment: SpaceX said it will use Nvidia hardware exclusively for its AI infrastructure. The move may improve execution and supports Nvidia, but it also reinforces concerns that SpaceX is committing heavily to expensive computing infrastructure. SpaceX Stock Craters as Musk Names Nvidia Exclusive AI Chip Supplier
• Neutral Sentiment: SpaceX also disclosed $295 million of Tesla Megapack purchases during the quarter, deepening business ties between Elon Musk’s companies but raising questions about related-party transactions and capital allocation. SpaceX has bought $329M worth of Tesla Megapacks so far this year
• Negative Sentiment: Capital expenditures surged to approximately $18.4 billion, including $15.8 billion for AI infrastructure—more than twice quarterly revenue. Investors are concerned that AI and space operations remain loss-making and that returns on this spending may take longer than management expects. SpaceX dives over AI spending surge rattles investors
• Negative Sentiment: Analysts estimate SpaceX could burn roughly $50 billion in cash this year, intensifying concerns about liquidity, dilution and the sustainability of its AI expansion despite strong EBITDA and Starlink profitability. Why SpaceX Stock Crashed After Earnings
• Negative Sentiment: About 911 million insider and pre-IPO shares become eligible for sale on August 6, potentially increasing supply and volatility while the stock remains well below its IPO price. Lockup expiry will offer the next test of investor appetite for SpaceX shares
• Negative Sentiment: SpaceX reported a roughly $540 million paper loss on its Bitcoin holdings, adding another source of earnings volatility.

Wall Street Analyst Weigh In

A number of equities analysts have commented on the stock. Wells Fargo & Company set a $215.00 price target on shares of SpaceX and gave the stock an “overweight” rating in a research note on Wednesday. Sanford C. Bernstein reaffirmed an “outperform” rating on shares of SpaceX in a report on Tuesday, July 28th. HSBC initiated coverage on shares of SpaceX in a research report on Thursday, July 23rd. They issued a “hold” rating and a $115.00 target price for the company. William Blair reissued an “outperform” rating on shares of SpaceX in a research note on Friday, July 31st. Finally, Clear Str raised SpaceX to a “strong-buy” rating in a research note on Tuesday, July 7th. Three investment analysts have rated the stock with a Strong Buy rating, twenty-five have issued a Buy rating, nine have given a Hold rating and two have assigned a Sell rating to the company. Based on data from MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and an average price target of $229.39.

SpaceX Stock Performance

SpaceX (NASDAQ:SPCX) last posted its quarterly earnings results on Tuesday, August 4th. The company reported ($0.09) EPS for the quarter, beating analysts’ consensus estimates of ($0.26) by $0.17. The firm had revenue of $7.81 billion for the quarter. SpaceX’s revenue for the quarter was up 91.9% compared to the same quarter last year.

Institutional Trading of SpaceX

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

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.