TLDR
- SpaceX (SPCX) stock opened at $123.62 on Friday, down 9% on the day.
- ARK Invest bought 348,406 SPCX shares across three ETFs, worth about $47.36 million.
- Democrats won both chambers of Congress, raising regulatory worries for Musk’s companies.
- SpaceX signed Qualcomm to supply 5G network technology for its planned U.S. mobile service.
- Analysts hold a Moderate Buy view with a $243.60 average price target.
SpaceX (SPCX) stock opened at $123.62 on Friday, down 9% on the day. That puts it well below its 50-day moving average of $149.32.
Space Exploration Technologies Corp., SPCX
The slide started a day earlier. SPCX closed Thursday’s regular session at $135.92, down $5.39, or 3.81%, from $141.31.
The drop came even though the big U.S. indexes finished higher. Democrats had just taken control of both the Senate and the House.
Investors worry that a new Congress means more oversight of Musk’s companies. That includes SpaceX’s government work, its AI projects and a possible Tesla combination.
Analysts also flagged possible delays for Musk’s business plans. Texas turning blue added to concerns about permitting hurdles for AI data centers.
ARK Steps In While Others Worry
Cathie Wood’s ARK Invest used the dip to add to its position. The firm bought 348,406 SPCX shares across three funds.
ARKK took 224,483 shares. ARKQ picked up 63,478, and ARKW bought 60,445.
ARK valued the trades at the November 4 closing price. That works out to roughly $47.36 million.
The same day, ARK’s fintech fund bought 1,894 Circle shares. Circle stock then fell more than 12%.
ARK also trimmed other holdings. ARKK sold 36,331 Bullish shares, and ARKW sold 35,248 Iambic Therapeutics shares.
ARKW also sold 8,809 CrowdStrike shares and 7,483 Cloudflare shares. ARKQ sold 15,750 Amazon shares and 14,684 Alphabet shares.
Other money is moving too. Claro Advisors raised its stake by 134.8% in the third quarter, to 14,734 shares worth about $2.22 million.
Deals, Ratings and Debt Worries
There was some good news for the company this week. SpaceX picked Qualcomm to supply 5G infrastructure technology for its planned U.S. wireless network.
A proposed change to U.S. launch rules could also help SpaceX. Its final impact depends on how the rules are written.
China Renaissance started coverage with a Buy rating and a $194.20 price target. Four analysts rate the stock Strong Buy, 31 say Buy, nine say Hold and three say Sell.
On the other side, the wider AI-stock pullback is hitting SpaceX. Investors are questioning the cost and returns of its large computing buildout.
Reports also say the cost of debt-default insurance on the company hit a record high. COO Gwynne Shotwell’s earlier sale of 342,170 shares for about $52.5 million, made under a pre-arranged plan, remains on the books.
SpaceX last reported earnings on October 20. It posted $0.35 per share against the $0.10 expected, with revenue of $14.57 billion, up 161.4% from a year earlier.
