TLDR
- SpaceX (SPCX) stock closed at $159.31 on Wednesday, up 8%, after its second earnings report as a public company.
- Q3 revenue rose 161% to $14.58 billion, and EPS of $0.35 beat the $0.10 estimate.
- JPMorgan more than doubled its price target to $500 from $240, and Barclays raised its target to $300.
- Capital spending is the key risk, with $35 billion to $40 billion expected in Q4.
- The boards of SpaceX and Tesla (TSLA) have formed special committees to explore a merger.
SpaceX (SPCX) stock closed at $159.31 on Wednesday, up 8%. The move came a day after the company posted its second earnings report as a public company.
Space Exploration Technologies Corp., SPCX
JPMorgan led the analyst response. Doug Anmuth more than doubled his price target to $500 from $240.
That target implies upside of more than 200% from Wednesday’s price. Anmuth wrote that no other company is as well positioned to go after a total addressable market of $28 trillion or more.
Barclays also moved higher, lifting its target to $300 from $254. Wells Fargo, TD Cowen and Needham raised targets or kept bullish ratings.
MarketBeat data shows 3 Strong Buy, 30 Buy, 9 Hold and 4 Sell ratings. The average price target sits at $243.08.
What the Earnings Showed
Revenue came in at $14.58 billion, up 161% from a year ago. Earnings per share were $0.35, well above the $0.10 consensus.
Net income reached about $4.4 billion, compared with a loss a year earlier. That is quite a turnaround in twelve months.
The AI business now leads the company. The Super Intelligence segment brought in $7.56 billion, up more than eightfold.
Management said new computing deployments pay back in under a year. The company guided to $33 billion to $37 billion in revenue for the first quarter of 2027.
Backlog stands at about $63 billion. Elon Musk told investors he expects annual recurring revenue of $500 billion to $1 trillion by the end of 2027.
Starlink connectivity revenue rose 69% to about $5.25 billion. The service now has 13.6 million consumer subscribers.
Risks and Merger Talk
Spending is the main concern. SpaceX spent about $19.6 billion on capital expenditures last quarter and expects $35 billion to $40 billion in the fourth quarter.
Analysts have warned the AI buildout could require heavy borrowing. Power availability and cash flow are also listed as risks.
The boards of SpaceX and Tesla have formed special committees to explore a merger. Musk called the idea a good one, but no deal is certain and shareholder approval would be needed.
Insider activity is also on the radar. COO Gwynne Shotwell sold 342,170 units of stock at $153.57 on Sept. 22 for about $52.5 million, under a pre-arranged plan, and upcoming insider unlocks could add selling pressure.
SPCX has traded between $104.83 and $225.64 over the past year. Its 50-day moving average is $149.18, and its market cap is $2.10 trillion.
The stock opened Thursday at $159.31. In overnight trading it sat near $155.40, down 2%.
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