Quick Summary
- Shares of SpaceX jumped 4.2% to $138.74 following Wall Street Zen’s upgrade from “sell” to “hold” rating
- Share volume surged 46% higher than typical daily averages, reaching 167 million shares traded
- Second quarter revenue reached $7.81 billion, marking a 91.9% increase from the prior year, while posting a loss of $0.09 per share that beat expectations
- Cathie Wood’s ARK Invest purchased approximately $36.9 million in SpaceX shares across four different funds after the earnings-related pullback
- Wall Street analysts maintain a “Moderate Buy” consensus with a mean price target of $227.31
Shares of SpaceX (SPCX) advanced 4.2% during Monday’s trading session, finishing at $138.74, following Wall Street Zen’s decision to raise its rating from “sell” to “hold.” The stock touched an intraday peak of $139.26, while trading activity exceeded typical daily levels by 46%.
Space Exploration Technologies Corp., SPCX
The upward movement comes after a turbulent period triggered by SpaceX’s inaugural public quarterly report released on August 4. The company reported $7.81 billion in quarterly revenue, representing a 91.9% surge compared to the same period last year. The loss of $0.09 per share significantly outperformed analyst expectations of a $0.26 loss.
Yet the stock faced initial selling pressure despite exceeding earnings projections. Investors expressed concerns over the $18.4 billion in capital expenditures recorded during the quarter and the company’s ongoing unprofitability.
However, ARK Invest saw opportunity in the weakness. Cathie Wood’s investment firm acquired 316,963 shares of SpaceX throughout its four funds during the past week, representing approximately $36.9 million in total value. ARK believes the market is undervaluing the company’s long-term prospects in Starlink operations, artificial intelligence infrastructure and space-based ventures.
The SpaceX acquisition represented ARK’s biggest individual company purchase during this timeframe. The firm executed these buys immediately following the post-earnings decline, seemingly viewing the dip as an attractive buying opportunity.
ARK’s Portfolio Rebalancing Strategy
The SpaceX purchases formed part of a comprehensive portfolio rebalancing initiative. ARK simultaneously acquired approximately $13.2 million in CoreWeave shares, $13.1 million in Cerebras, and $17.6 million in Nvidia. Conversely, the firm divested roughly $96 million worth of Roblox and $21 million in Palantir holdings.
This reallocation indicates ARK’s strategic pivot from software-focused companies toward capital-intensive AI and aerospace infrastructure investments.
An additional concern also dissipated during the period. The unlock of over 900 million previously restricted shares on August 6 failed to produce the dramatic selloff that market observers had anticipated. Reports indicate another share unlock is scheduled for August 20.
Retail traders became net sellers for the first time since the June initial public offering, disposing of approximately $4.5 million in shares. While the figure remains modest, it represents a notable shift in retail investor sentiment.
Analyst Price Projections
Wall Street coverage has expanded steadily since the company’s public debut. Both Bank of America and Guggenheim maintain “buy” recommendations, with Bank of America establishing a $235 price objective. Evercore and Mizuho each rate the shares “outperform,” setting targets at $230 and $200 respectively.
Piper Sandler reduced its price target from $156 down to $140 while maintaining a “neutral” stance. The aggregate consensus among 40 covering analysts stands at “Moderate Buy” with a mean price objective of $227.31.
The stock’s 50-day moving average currently sits at $143.35. SpaceX maintains a debt-to-equity ratio of 0.29, a quick ratio of 4.99 and a current ratio of 5.12.
Wall Street analysts are currently forecasting a full-year loss of $0.11 per share for the ongoing fiscal year. A Falcon 9 rocket booster is set to complete its 18th mission during an upcoming Starlink satellite launch, highlighting the company’s sustained operational tempo.
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