Key Takeaways Shares of SpaceX climbed 15.8% to $133.11 following an Argus upgrade from “hold” to “buy,” accompanied by a $160 price target Second-quarter revenue reached $7.81 billion, marki
SpaceX (SPCX) experienced a significant 15.8% surge on Friday, reaching an intraday high of $133.48 before closing at $133.11, driven by an Argus analyst upgrade from “hold” to “buy” with a $160 price target. Trading volume exceeded typical levels by approximately 110%, with roughly 237 million shares traded.
Space Exploration Technologies Corp., SPCX
This rally comes after a challenging period for the stock. SPCX hit a fresh low on Monday ahead of its earnings announcement and had been consolidating near $110 since late July. Friday’s breakout ended that downward pressure.
The upward movement stemmed from two coinciding factors. The Argus upgrade arrived on the same day the first insider lock-up window closed, an event that market participants had anticipated would bring substantial selling. Contrary to expectations, the stock demonstrated resilience.
Second-quarter financial results disclosed Tuesday exceeded projections across key metrics. Revenue totaled $7.81 billion, representing a 91.9% year-over-year increase. The company reported a $0.09 per share loss, significantly better than the $0.26 loss Wall Street had anticipated.
SpaceX announced AI cloud infrastructure contracts valued at up to $20.8 billion during the quarter, highlighted by a single $6.7 billion arrangement. AI-focused revenue more than tripled, reaching approximately $2.56 billion. This expansion is reshaping analyst perspectives on the company, with many now characterizing it as a comprehensive space, connectivity, and AI infrastructure provider.
Starlink also delivered impressive results. The subscriber base reportedly doubled to 12 million users, while government and commercial connectivity revenue maintained solid growth momentum.
Multiple analysts updated their views alongside Argus. Sanford C. Bernstein established a $248 price target. JPMorgan also increased its target. The consensus among 40 analysts stands at “Moderate Buy” with an average price target of $227.31.
The breakdown includes two analysts with Strong Buy ratings, 25 with Buy recommendations, eight with Hold positions, and five with Sell ratings.
Thursday brought a notable shift in options market dynamics. Instead of the far out-of-the-money call purchases that characterized post-IPO trading, larger positions involved selling puts while simultaneously buying calls, a configuration known as a risk reversal.
One market participant sold $12 million worth of 90-strike puts expiring in June 2027, then purchased $4.3 million in 220-strike calls for the identical expiration. Another transaction involved selling $3.5 million in 75-strike puts expiring January 2028 while buying $5 million in 185-strike calls. Both strategies suggest expectations that downside risk is limited, with positioning for potential appreciation.
The 14-day RSI reached its bottom late last month, while implied volatility has declined to its lowest level since June 30.
Skeptics maintain valid concerns. SpaceX incurred approximately $18.4 billion in expenses last quarter, with $15.8 billion allocated to AI infrastructure investments. The company continues to generate GAAP losses, and the $16.8 billion Terafab initiative carries execution uncertainty. Remaining share unlock events scheduled through December continue to present potential headwinds.
For the complete fiscal year, Wall Street analysts project SpaceX will report a loss of $0.64 per share.
The post SpaceX (SPCX) Shares Surge 16% on Analyst Upgrade and Robust Q2 Performance appeared first on Blockonomi.
