Why SpaceX stock is rocketing around 11% on Friday

SpaceX stock SPCX climbed on Friday, putting the stock on track to snap a four-week losing streak after stronger-than-expected quarterly results prompted analysts to raise revenue forecasts.

Shares of Elon Musk's rocket and AI company rose about 11% to $126.82 in early trading.

Despite the week's rebound, SpaceX shares remain well below their post-listing highs.

The broader market also advanced after weaker-than-expected US employment data strengthened expectations that the Federal Reserve could leave interest rates unchanged.

The S&P 500 rose 0.3%, while the Nasdaq Composite gained 0.8%. The Dow Jones Industrial Average added 67 points, or 0.1%.

The major indexes were also headed for a second consecutive weekly gain.

The S&P 500 was up more than 3% for the week, while the Nasdaq was on pace for its strongest weekly performance since April, supported by a rebound in semiconductor stocks.

The iShares Semiconductor ETF had gained more than 7% during the week.

Earnings beat boosts sentiment

Friday's advance left SpaceX shares up roughly 15% for the week after the company reported stronger-than-expected second-quarter results.

SpaceX reported second-quarter revenue of $7.8 billion and earnings before interest, taxes, depreciation, and amortization (EBITDA) of $3.5 billion, exceeding Wall Street expectations of $6.8 billion in revenue and $2.1 billion in EBITDA.

Following the earnings release, analysts raised their long-term forecasts.

According to FactSet, consensus estimates for 2027 revenue have increased to about $102 billion from roughly $72 billion at the end of July.

The earnings report also prompted several analysts to revise their outlooks for the company.

Bernstein SocGen Group raised its price target on SpaceX to $248 from $239 while maintaining an Outperform rating.

The firm said the higher target reflected increased revenue assumptions and improved pricing expectations for the company's AI computing business following the second-quarter results.

Bernstein noted that SpaceX had accelerated its target to reach $1 trillion in annual revenue by 2030, one year earlier than previously projected.

According to the firm, the revised outlook is driven primarily by stronger pricing for compute services and a more aggressive terrestrial AI expansion rather than higher launch activity for planned orbital data centres.

The firm also said SpaceX has finalized the design of its orbital data centres and intends to monetize terrestrial AI capacity at between $30 and $50 per watt.

Lock-up expiration expands trading float

Thursday marked the first major expiration of SpaceX's post-IPO lock-up restrictions, allowing rank-and-file employees and some early investors to sell up to 911.5 million shares.

The newly eligible shares more than doubled the company's public float, adding to the roughly 639 million shares previously available for public trading.

Additional lock-up restrictions are scheduled to expire over the coming months, increasing the proportion of potentially tradable shares to about 40% of the company by December 8.

The remaining 60%, including Musk's stake, will remain locked until mid-2027.

The lock-up expiration comes after a sharp post-earnings decline, when investors reacted to elevated AI spending and continuing operating losses.

Although SpaceX has underperformed the broader technology sector since its June listing, analysts continue to maintain a constructive long-term outlook as the company expands its AI computing and satellite businesses.