SpaceX shares tumbled about 2.5% to $115.26 on Friday, reflecting growing investor caution after the 13th Starship test flight faced consecutive postponements. This dragged the stock nearly 50% down from its peak of $225.64 and 12% below its June IPO price of $135.
The latest launch attempt was canceled twice: first, on July 17, due to multiple engine ignition failures on the Super Heavy booster, and again on July 23 when weather conditions obscured visibility. SpaceX responded by replacing several Raptor engines and conducting further ground tests, aiming for another try that included deploying 20 Starlink V3 satellites and testing in-orbit engine relighting.
Market Sentiment Shifts with Analyst and Short Seller Activity
HSBC broke ranks from the generally bullish consensus by initiating coverage with a Hold rating and a $115 price target, cautioning on potential selling after early investors’ lockup periods end post-IPO. Currently, roughly 76% of analysts favor buying SpaceX stock, with average targets around $237.
Meanwhile, short sellers have capitalized on recent volatility, accumulating estimated unrealized gains of $15.5 billion since the June debut. Approximately 56% of the freely available shares are loaned out to shorts, contributing to a downward trend marked by losses in 17 of the last 26 trading sessions. Alphabet’s substantial stake, valued at $94.1 billion in June, has also seen its market value shrink alongside SpaceX’s share price.
Attention now turns to SpaceX’s earnings report slated for August 4, where growth in the Starlink segment is expected to play a key role in determining the stock's trajectory.
