Key Highlights
- Shares of SpaceX surged 4.2% to reach $138.74 following Wall Street Zen’s rating increase from “sell” to “hold”
- Daily trading volume exceeded the average by 46%, reaching 167 million shares
- Second-quarter revenue reached $7.81 billion, marking a 91.9% increase year-over-year, while posting a better-than-anticipated loss of $0.09 per share
- Cathie Wood’s ARK Invest acquired approximately $36.9 million in SpaceX shares across four investment funds after the post-earnings decline
- Wall Street consensus rating stands at “Moderate Buy” with analysts targeting an average price of $227.31
Shares of SpaceX (SPCX) advanced 4.2% during Monday’s trading session, finishing at $138.74 after receiving an upgraded rating from Wall Street Zen, which moved the stock from “sell” to “hold.” Intraday trading saw the stock touch $139.26, while trading activity exceeded normal daily volume by 46%.
Space Exploration Technologies Corp., SPCX
This upward movement comes after a turbulent period following the company’s inaugural public earnings announcement on August 4. The aerospace manufacturer reported quarterly revenue of $7.81 billion, representing a 91.9% jump compared to the same period last year. The company posted a loss of $0.09 per share, significantly outperforming analyst expectations of a $0.26 loss.
However, the initial market reaction was negative despite these favorable results. Investor concerns centered on the company’s substantial capital expenditures of $18.4 billion during the quarter and its continued unprofitability.
ARK Invest seized the opportunity during this weakness. The investment firm led by Cathie Wood purchased 316,963 shares across four different funds last week, representing an investment of approximately $36.9 million. ARK’s rationale focused on what it perceives as the market undervaluing SpaceX’s long-term prospects in Starlink operations, AI infrastructure development, and space-based commercial activities.
This purchase represented ARK’s most significant single-company acquisition during that timeframe. The firm strategically timed its buying immediately following the post-earnings decline, viewing it as an attractive entry opportunity.
ARK Investment’s Strategic Rebalancing
ARK’s SpaceX acquisition was embedded within a larger portfolio restructuring initiative. The firm simultaneously added approximately $13.2 million in CoreWeave shares, $13.1 million in Cerebras stock, and $17.6 million worth of Nvidia. Conversely, ARK divested roughly $96 million of Roblox holdings and $21 million in Palantir shares.
This trading activity demonstrates a deliberate pivot away from software-focused investments toward companies with substantial infrastructure positions in artificial intelligence and aerospace sectors.
Another potential headwind dissipated during the week. The unlocking of over 900 million previously restricted shares on August 6 failed to produce the dramatic selloff that many market participants anticipated. Reports indicate another share unlock event is scheduled for August 20.
Retail investors became net sellers for the first time since the June initial public offering, disposing of approximately $4.5 million in shares. While the absolute amount remains modest, it represents a notable sentiment shift among individual investors.
Analyst Price Projections
Wall Street research coverage has expanded steadily following the company’s public debut. Bank of America and Guggenheim both maintain “buy” recommendations, with Bank of America establishing a $235 price objective. Evercore and Mizuho assign “outperform” ratings, with price targets of $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 is “Moderate Buy” with a mean price target 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, alongside a quick ratio of 4.99 and current ratio of 5.12.
Wall Street analysts are forecasting a full-year earnings per share of -$0.11 for the ongoing fiscal year. The company has a Falcon 9 booster prepared to complete its 18th mission during an upcoming Starlink satellite deployment, highlighting the company’s sustained launch cadence.
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