Is Now the Right Time to Buy SpaceX Stock?

SpaceX stock has come under intense selling pressure over the past two months, wiping billions of dollars from the company’s market value. After climbing as high as $225 following its highly anticipated IPO, the stock later tumbled to a record low near $105.

Despite the steep decline and growing short interest, several fundamental and technical indicators suggest that the recent weakness could present an attractive opportunity for investors willing to tolerate the risks.

SpaceX Reports Strong Revenue Growth Despite Mixed Earnings

SpaceX released its latest quarterly results earlier this week, delivering a mixed performance across its major business divisions. However, the company continued to record impressive revenue growth, largely supported by the continued expansion of Starlink.

Revenue increased by approximately 92% during the second quarter, reaching $7.8 billion. The sharp increase highlights continued demand across SpaceX’s connectivity, launch, and emerging technology businesses.

Starlink remained one of the company’s strongest growth engines. The satellite internet business ended the quarter with roughly 12 million subscribers, while the number of satellites in orbit climbed above 10,000.

As adoption continued to expand, connectivity revenue reached approximately $4.2 billion during the second quarter. For the first six months of the year, the segment generated around $7.5 billion in revenue.

SpaceX also recorded stronger performance from its space operations. Revenue from the space segment rose to approximately $962 million in Q2, compared with $619 million during the same quarter of 2025.

Meanwhile, the company’s artificial intelligence business experienced even faster growth. AI-related revenue surged to approximately $2.56 billion, significantly higher than the $818 million recorded previously.

Profitability across the different divisions remained uneven.

Starlink’s connectivity operations generated more than $1.6 billion, while the space and AI divisions continued to report substantial losses. The space segment posted losses of more than $542 million, while the AI operation lost approximately $1.2 billion during the second quarter.

Rising Capital Spending Remains a Major Risk

One of the biggest concerns surrounding SpaceX is its rapidly increasing capital expenditure.

The company’s CAPEX reportedly climbed above $18 billion during the second quarter, with approximately $15.2 billion linked to its AI operations.

A significant portion of that spending is expected to support the company’s growing computing infrastructure. Nvidia is expected to become one of the major chip suppliers supporting SpaceX’s expanding AI ambitions.

Although aggressive investment could strengthen the company’s long-term competitive position, the enormous upfront costs may continue to pressure profitability and cash flow in the near term.

Investors will therefore be closely watching whether these investments eventually generate enough revenue to justify the current level of spending.

Analysts See Significant Growth Potential Ahead

Despite the short-term financial pressures, Wall Street expectations for SpaceX remain relatively optimistic.

The company operates in several industries that are expected to experience substantial growth over the coming years.

SpaceX already holds a dominant position in the global satellite launch market, while Starlink has established itself as one of the leading providers of satellite-based broadband services.

Analysts believe the company’s revenue could continue expanding rapidly as these businesses scale.

According to analyst estimates published by Yahoo Finance, SpaceX could generate roughly $12 billion in revenue during the current quarter, representing another significant increase from its second-quarter performance.

For the full year, analysts expect revenue of approximately $39.1 billion.

That figure could rise substantially next year, with projections suggesting annual revenue could reach around $73 billion.

If Starlink subscriber growth, commercial launches, and AI infrastructure demand remain strong, SpaceX could potentially outperform these forecasts.

AI Partnerships Could Become Another Growth Driver

SpaceX’s growing involvement in artificial intelligence infrastructure may eventually become another important source of revenue.

The company has reportedly secured several major commercial agreements related to its AI data-center operations.

These include an estimated $1.2 billion-per-month agreement with Anthropic, approximately $950 million involving Google, and another $150 million agreement with Reflection AI.

If these partnerships continue expanding, the AI division could become a much larger contributor to SpaceX’s overall business.

At the same time, the current surge in capital expenditure may eventually moderate.

Once major infrastructure initiatives such as the Terafab project reach completion, SpaceX could potentially reduce its investment requirements while benefiting from the additional revenue generated by the infrastructure already built.

That combination could significantly improve margins and free cash flow over time. For more info about Record-Breaking SpaceX IPO Expected in 2026-27

Wall Street Remains Bullish on SpaceX Stock

Despite the recent stock-price decline, many analysts remain optimistic about SpaceX’s longer-term prospects.

MarketBeat data indicates that the consensus analyst price target currently stands near $229.

Compared with the stock’s recent trading level, that target would imply substantial upside potential if the company manages to deliver on its growth expectations.

Several major Wall Street firms have reportedly maintained bullish views on the company, including Bernstein, UBS, Wells Fargo, and Piper Sandler.

However, investors should remember that analyst price targets can change quickly depending on earnings performance, capital spending, competitive conditions, and broader market sentiment.

SpaceX Stock Technical Analysis

The short-term SPCX stock chart is beginning to show signs that selling pressure may be weakening.

One potentially bullish development is the formation of a double-bottom pattern around $105.27. This type of chart formation can sometimes signal that sellers are struggling to push the price meaningfully below an established support area.

The pattern’s neckline sits near $126.31, which represents the stock’s August 4 high.

A sustained breakout above this level could strengthen the bullish technical outlook and potentially attract additional buyers.

The stock is also attempting to move above its 50-period Exponential Moving Average (EMA), another potentially positive signal.

Meanwhile, the Relative Strength Index (RSI) has climbed above the neutral 50 level, suggesting that buying momentum may be gradually improving.

If the recovery continues and the stock successfully breaks through nearby resistance levels, SPCX shares could eventually attempt to move toward the psychologically important $200 level.

However, the bullish outlook would weaken if the stock falls back sharply.

A decisive move below the $111 support area could invalidate the current recovery setup and increase the risk of another decline toward previous lows.

Is SpaceX Stock a Buy?

SpaceX remains a high-growth company operating across several rapidly expanding industries, including satellite broadband, commercial space launches, artificial intelligence infrastructure, and advanced communications.

Starlink continues to expand its subscriber base, company-wide revenue is growing rapidly, and analysts expect substantial additional growth over the next several years.

Frequently Asked Questions

Is SpaceX stock a good buy right now?

SpaceX stock could appeal to long-term investors because of its strong revenue growth, expanding Starlink business, and exposure to the space and AI industries. However, investors should consider its high spending levels and market volatility before buying.

Why has SpaceX stock fallen?

SpaceX stock has declined because of concerns about rising capital expenditures, losses in some business segments, increased short interest, and broader investor caution following its strong post-IPO rally.

What is the SpaceX stock price target?

According to analyst estimates cited in the article, the consensus price target for SpaceX stock is around $229, although price targets can change depending on earnings, market conditions, and company performance.

Can SpaceX stock reach $200 again?

SpaceX stock could potentially return to the $200 level if revenue growth remains strong and the shares break above key technical resistance levels. However, there is no guarantee that the stock will reach this target.

What are the main growth drivers for SpaceX?

The company’s main growth drivers include Starlink subscriber expansion, satellite launches, commercial space services, AI infrastructure, and potential growth from major technology partnerships.

What are the biggest risks of investing in SpaceX stock?

Key risks include high capital expenditure, losses in certain business divisions, strong competition, stock-price volatility, and the possibility that future growth may fall short of analyst expectations.

Conclusion

SpaceX stock has experienced a sharp correction from its post-IPO highs, but the company’s long-term growth story remains intact. Strong Starlink expansion, rising space revenue, growing AI-related business, and optimistic analyst forecasts could support future gains.

However, investors should also consider the company’s heavy capital expenditures, ongoing losses in some business segments, and high share-price volatility. From a technical perspective, signs of a potential bottom are emerging, but a confirmed breakout above key resistance levels would strengthen the bullish case.