Key Takeaways
- SpaceX shares ended Friday at a record low of $123.99, marking a nearly 40% decline from the June 16 peak of $201.80
- The company is negotiating with the Defense Department to supply AI computational infrastructure
- Comparable agreements with Google and Anthropic are forecast to bring in $26 billion annually at full capacity
- Piper Sandler elevated SPCX to “hold” status; analyst consensus remains “Moderate Buy” with a $234.78 mean target
- Latest quarterly results showed a $1.27 per share deficit on $4.69 billion in total revenue
Shares of SpaceX gained 1.2% in Monday’s premarket session to $125.53, working to break a six-session slide that brought the stock to its lowest-ever close of $123.99 on Friday — beneath the company’s $135 initial public offering price.
Space Exploration Technologies Corp., SPCX
The emerging opportunity: According to a Friday report in The Wall Street Journal, SpaceX is engaged in discussions with the Defense Department regarding AI computational services. Should the arrangement proceed, it would parallel existing contracts with Google and Anthropic, both projected to deliver approximately $26 billion in yearly revenue when operating at full scale.
SpaceX has not issued a statement regarding the Defense Department negotiations.
The aerospace firm’s AI computational capabilities are anchored by its Colossus I and II facilities located in Memphis, Tennessee, which were acquired through the February xAI merger. Additionally, SpaceX has outlined ambitious long-range plans for space-based AI data centers utilizing solar power generation.
These orbital initiatives depend heavily on Starship, SpaceX’s completely reusable launch vehicle engineered to reduce orbital access costs from thousands per kilogram to merely hundreds. However, Starship encountered setbacks last week when its 13th experimental launch was cancelled following engine ignition failures. The mission has been rescheduled for June 23.
Goals for Starship’s 13th Test Mission
During the rescheduled launch attempt, the booster must accomplish several critical milestones: successful liftoff, stage separation maneuver, boostback engine burn, and touchdown in the Gulf of America. The Starship upper stage will work to release 20 Starlink V3 satellites into orbit and execute a single Raptor engine restart in space before conducting a controlled descent into the Indian Ocean.
Market participants are monitoring developments carefully. Shares have declined approximately 40% from their peak of $201.80 achieved on June 16.
Analyst Sentiment and Projections
Piper Sandler moved SPCX to a “hold” recommendation on July 17. The overall analyst outlook shows greater optimism: four analysts rate it Strong Buy, 24 assign Buy ratings, eight recommend Hold, and one suggests Sell.
Recent coverage additions feature Susquehanna initiating at Neutral with a $170 price objective, Wedbush starting coverage at Outperform with a $190 target, TD Cowen beginning with a Buy rating, Needham increasing its price target from $200 to $250 while maintaining Buy, and Royal Bank of Canada launching coverage at Outperform with a $225 objective.
The consensus mean price objective stands at $234.78, significantly exceeding current market prices.
Regarding financial performance, SpaceX disclosed a $1.27 per share loss alongside $4.69 billion in revenue for its latest quarterly period, announced May 7.
Multiple institutional investment firms established new SpaceX positions throughout the second quarter, including Atwood & Palmer, Marquette Asset Management, and Burkett Financial Services, although the holdings remained modest in size.
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