SpaceX Shares Surge as Analysts Revise Targets Following Record Q3

SpaceX triggered a sharp rally in its stock price on Tuesday, October 21, after releasing third-quarter earnings that far exceeded market expectations. The company, trading under the ticker SPCX on the NASDAQ, saw its shares jump approximately 8 percent in early premarket trading. This movement followed a strong after-hours session on Monday, October 20, as investors reacted to a quarterly report that highlighted substantial growth and a significant shift into profitability.

The core of the earnings surprise was the company’s financial performance, which showed revenue of $14.6 billion. This figure represented a 161 percent year-over-year increase, comfortably surpassing the consensus estimate of roughly $12.7 billion. More notably, SpaceX posted a net profit of $4.4 billion, a stark contrast to the loss recorded in the same period last year. The company’s adjusted EBITDA reached $8.8 billion, signaling a robust operational baseline that has caught the attention of major financial institutions.

A key driver of the stock’s momentum was the rapid ascent of SpaceX’s Super Intelligence division. This AI-focused segment generated approximately $7.6 billion in revenue, growing nearly 830 percent year-over-year to become the company’s largest revenue contributor. Meanwhile, the Connectivity segment, driven by Starlink, delivered $5.2 billion in revenue. The consumer base for Starlink expanded to 13.6 million subscribers, reflecting continued strength in the company’s satellite internet services.

The earnings call provided additional catalysts for bullish sentiment, as CEO Elon Musk and CFO Bret Johnsen outlined ambitious forward-looking guidance. Management projected first-quarter 2027 revenue between $33 billion and $37 billion, a figure well above the approximately $22 billion that analysts had previously modeled. To support this growth, the company plans fourth-quarter capital expenditures of $35 billion to $40 billion, with a primary focus on AI compute infrastructure at sites in Memphis and Southaven.

Investors also took note of the company’s infrastructure targets, with management aiming for 2.5 to 3 gigawatts of nameplate compute capacity by the end of the year. Discussions during the call included pathways to reaching 13 gigawatts or more by the end of 2027. Musk emphasized the relentless demand from hyperscalers and other customers, noting that current compute pricing supports payback periods of less than a year, with some potentially as short as six months.

In response to these results, a wave of Wall Street analysts raised their price targets for SpaceX stock. JPMorgan more than doubled its target to $500 from $240, maintaining an Overweight rating. Cantor Fitzgerald lifted its target to $345 from $246, while Barclays raised its target to $300 from $254. Other firms, including Citi, UBS, TD Cowen, Wells Fargo, and Clear Street, also adjusted their targets upward, ranging from $224 to $274.

Morgan Stanley maintained an Overweight rating with a $300 target, aligning with the broader trend of increased conviction among analysts. The widespread price target hikes were attributed to the strong quarterly performance, the accelerating expansion of AI compute capabilities, progress in the Starlink network, and recent milestones achieved by the Starship program, including orbital success and V3 satellite deployment.

Additional factors influencing investor sentiment included the rapid adoption of Grok Bot, plans for spectrum expansion, and the formation of special committees to explore a potential combination with Tesla. Although the company’s elevated spending plans remain a point of focus, the average analyst price target has moved higher. This shift reflects a broader belief in SpaceX’s long-term growth trajectory across its launch, connectivity, and Super Intelligence businesses.