SpaceX Stock Falls to $105 Amid Rising AI Spending and Mixed Earnings

Key Insights

• SpaceX stock has been in a strong bearish trend in the past few months.
• The company’s growth is expected to accelerate in the coming years.
• Its business is benefiting from key areas like AI and Starlink.

SpaceX stock has plunged sharply in the past two months, erasing billions of dollars in value. After soaring to $225 following its highly anticipated IPO, it dropped to a record low of $105. Still, despite the rising short interest, there are signs that this could be a golden opportunity to buy the shares.

SpaceX published relatively encouraging financial results earlier this week, helped by its Starlink business. These numbers showed that its revenue jumped by 92% in the second quarter to $7.8 billion. That is a sign that it continues to see strong demand across most of its businesses.

The company’s Starlink business ended the quarter with 12 million subscribers, with the number of its satellites rising to over 10k. As a result, the connectivity revenue jumped to $4.2 billion in the second quarter and to $7.5 billion in the first six months of the year.

The results also showed that its space revenue jumped to $962 million in Q2 from $619 million in Q2’25. Also, its AI revenue jumped to $2.56 billion from the previous $818 million.

Additionally, the results showed that Starlink’s business made over $1.6 billion in the connectivity business. Its space and AI businesses made over $542 million and $1.2 billion in losses in the second quarter.

The main concern, however, is that its capital expenditures continued surging in the last quarter. Its CAPEX soared to over $18 billion in Q2, with the AI segment spending $15.2 billion. Some of the AI spending will go to Nvidia, which will supply it with chips.

SpaceX’s business is expected to keep growing in the coming years, helped by its growing market share in its key businesses. For example, it maintains a big market share in the satellite launch industry, which is expected to keep growing over time. Starlink is the most dominant player in the satellite broadband industry.

Analysts tracking the company believe that it has more room for growth in the near term. Yahoo Finance data shows that the company will make $12 billion this quarter, a big increase from what it made in Q2.

For the year, the company is expected to make $39.1 billion in revenue this year, followed by $73 billion next year. Chances are that the company will make more money than what analysts are expecting.

One reason why this growth will accelerate is that its AI data center business is gaining momentum. It has already inked a $1.2 billion-a-month business with Anthropic, $950 million with Google, and $150 million with Reflection AI.

This growth will likely continue boosting its revenue over time. At the same time, the company’s huge capital spending will likely start to fade, especially when the Terafab project ends.

Top analysts tracking the company have a bullish outlook for the company. MarketBeat data shows that the consensus among analysts is $229, up by 99% from the current level. Some of the most bullish analysts are from companies such as Bernstein, UBS, Wells Fargo, and Piper Sandler.

The hourly chart shows that the SPCX stock is showing some bottoming signs. It has formed a double-bottom pattern at $105.27 and a neckline at $126.31, its highest point on August 4.

The chart shows that it is attempting to move above the 50-period Exponential Moving Average (EMA). Also, the Relative Strength Index (RSI) has moved above the neutral level of 50.

Therefore, the stock will likely continue rising in the coming months, potentially to the psychological level of $200. A drop below the support level of $111 will invalidate the bullish outlook.

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