TLDR
- SpaceX (SPCX) stock opened Friday at $123.62, down 9% from Thursday’s close of $135.92.
- Democrats won the Senate and the House, raising oversight worries for Musk’s companies.
- ARK Invest bought 348,406 SPCX across three ETFs, valued at about $47.36 million.
- SpaceX picked Qualcomm to supply 5G network technology for its planned U.S. mobile service.
- Wall Street’s average price target is $243.60, with a Moderate Buy consensus.
SpaceX (SPCX) stock opened Friday at $123.62, down 9% from Thursday’s close of $135.92. That leaves it well under its 50-day moving average of $149.32.
Space Exploration Technologies Corp., SPCX
Thursday was no gentle warm-up. The stock lost $5.39, or 3.81%, from a prior close of $141.31.
Wall Street’s big indexes finished higher that day. SpaceX went the other way.
Politics Take the Blame
Democrats won both the Senate and the House in the midterms. Texas also turned blue.
Investors now expect more oversight of Musk’s companies. That covers SpaceX’s government work, its AI projects and a possible Tesla combination.
Analysts also flagged possible delays or investigations tied to Musk’s business plans. In their view, the election added one more unknown.
Worries about AI spending piled on. The wider pullback in AI stocks is hitting SpaceX as investors question the cost and returns of its large computing buildout.
Debt-default insurance costs on the company have reportedly hit a record high. That feeds concerns about credit risk and financing.
ARK Goes Shopping
Cathie Wood’s ARK Invest bought 348,406 SPCX across three ETFs. The trades were valued at the November 4 close, about $47.36 million.
ARKK took 224,483. ARKQ added 63,478, and ARKW picked up 60,445.
ARK was selling elsewhere. ARKK sold 36,331 Bullish, and ARKW sold 35,248 Iambic Therapeutics.
ARKW also sold 8,809 CrowdStrike and 7,483 Cloudflare. ARKQ sold 15,750 Amazon and 14,684 Alphabet.
Claro Advisors raised its SpaceX stake by 134.8% in the third quarter. It now holds 14,734 SPCX, worth about $2.22 million.
Insiders have been sellers. COO Gwynne Shotwell sold 342,170 on September 22 at $153.57, for about $52.5 million, under a pre-arranged trading plan.
There was good news too. SpaceX picked Qualcomm to supply 5G network technology for its planned U.S. wireless service.
A proposed change to U.S. launch rules could also help. The final effect depends on how the rules are written.
China Renaissance started coverage with a Buy rating and a $194.20 target. Across Wall Street, four analysts say Strong Buy, 31 say Buy, nine say Hold and three say Sell.
SpaceX last reported earnings on October 20. It earned $0.35 per share against the $0.10 expected, on revenue of $14.57 billion, up 161.4% from a year earlier.
The stock’s 12-month range runs from $104.83 to $225.64. Its market value stands at $1.68 trillion.
