SpaceX stock (SPCX) gained 3% in early trading Wednesday to hit $137.02, bouncing back above its June initial public offering price of $135. The price recovery followed a 3.9% dip on Tuesday and coincided with a successful launch of 24 Starlink broadband satellites from Vandenberg Space Force Base.
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Explore ASTX for 2X leverage on ASTSThe Tuesday night flight marked SpaceX’s 51st West Coast launch this year. This launch shows how quickly the company is expanding its satellite network. SpaceX gets a lot of media attention for its artificial intelligence plans. However, Starlink remains the main driver of its financial growth. Satellite internet brings in nearly 70% of total SpaceX sales. This single business generated $4.29 billion in revenue during the second quarter.
Large Capital Spending Is Hurting Profits in Other Units
Large spending continues to hurt profits outside of satellite internet. SpaceX lost money in both its artificial intelligence and Starship rocket units. These losses came after the company spent $15.8 billion during the second quarter. SpaceX used that money to build data centers and buy more computer gear.
Market sentiment also changed following earnings from direct-to-cell competitor AST SpaceMobile (ASTS). AST reported quarterly revenue of $31.5 million, missing Wall Street expectations of $35.18 million. Despite the miss, AST maintained its full-year sales guidance of $150 million to $200 million, keeping competitive pressure active in the satellite telecommunications space.
Traders Are Preparing for Next SpaceX Share Unlock on August 20
Trading volatility persists as early investors and employees navigate post-IPO share restriction schedules. SpaceX shares had dropped over 30% from their June peak of $201.80 ahead of an initial share unlock period. However, expected selling pressure failed to materialize, sparking a short-term price recovery.
Traders are now preparing for the next scheduled SpaceX share unlock on August 20. This event will release roughly 320 million restricted shares into the market, adding 7% to the total tradable float. Notably, short-term price movements reflect risk adjustment ahead of this added share supply.
What Is SPCX’s Stock Price Target?
SPCX stock has a Moderate Buy consensus rating on TipRanks based on 24 Buys, five Holds, and two Sells assigned after its IPO. The average 12-month price target for SpaceX is $231.15, implying an upside of 73.4% from current price levels. (See SPCX stock forecast)
