SpaceX shares logged a sharp rally, ahead of the company’s earnings which were due to be released on Tuesday. The scrip was trading 8.16%, or $9.34 higher, at $123.87 apiece at 1:43 pm EST.
The upcoming earnings report would mark SpaceX’s first quarterly results since its record-breaking initial public offering in June and is expected to provide investors with the first detailed glimpse into the financial health of Elon Musk’s satellite, space and artificial intelligence company.
Despite Tuesday’s gains, SpaceX shares have endured a volatile ride since listing.
After debuting at $135, the stock surged to as high as $225 within days before reversing course sharply. It ended Monday at $114.53, nearly 15% below its IPO price and almost 49% below its post-listing peak, wiping out more than $1 trillion in market value from those highs.
The stock, however, has shown signs of stabilising this week after tumbling 37% in July.
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Analysts expect SpaceX to report a second-quarter loss of 24 cents a share on revenue of $6.8 billion.
However, estimates remain uncertain due to the company’s limited financial disclosure history, with analysts widening their projected loss over the past month.
While quarterly numbers will be closely tracked, investors are expected to pay greater attention to management’s commentary on the company’s long-term growth strategy, particularly its artificial intelligence initiatives, Starlink satellite internet business and rocket launch operations.
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Wall Street remains largely optimistic about the company’s long-term prospects.
According to Bloomberg data, 30 of the 39 analysts covering the stock have a ‘buy’ rating. Several brokerages have maintained ambitious price targets despite the steep correction.
Raymond James has reiterated an $800 target over the next 12 months, betting on rapid revenue expansion, while Morgan Stanley believes the recent decline offers an attractive entry point, arguing that the current valuation assigns little value to SpaceX’s AI business.
Some analysts have even suggested investors should look beyond quarterly earnings altogether.
They argue that management’s confidence in future growth, particularly around orbital data centres, AI infrastructure and satellite services, will be more important than near-term financial performance.
However, concerns over valuation continue to linger. Even after the recent selloff, SpaceX trades at about 448 times estimated forward earnings and roughly 26 times projected sales, making it one of the most expensive stocks in the Nasdaq 100.
Short interest has also climbed sharply over the past month, reflecting growing bearish bets against the company.
Adding to investor caution is a major share unlock scheduled for August 6, when more than 911 million shares worth over $100 billion become eligible for trading as post-IPO lock-up restrictions begin to expire.
Analysts say the influx of additional shares could create further pressure on the stock in the near term, even as investors assess the company’s long-term growth story following its maiden earnings report as a listed company.
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