- SpaceX stock has pulled back in the past few days.
- The company will publish its financial results on Tuesday.
- The results will provide hints on its growth and its guidance.
SpaceX stock will be in the spotlight today, Oct. 20, as Elon Musk’s company publishes its second earnings as a publicly traded company. These results come at a time when its stock has pulled back from this month’s high of $176.32 to the current $147. So, will the SPCX stock fall further or bounce back?
Analysts Expect SpaceX’s Earnings Growth to Continue
SpaceEx stock will react to its earnings report, which will shed light on its revenue and profitability growth and its capital spending. Analysts are highly optimistic that the company’s revenue growth will continue in the third quarter.
Precisely, data compiled by Yahoo Finance shows that its revenue jumped to $13 billion in the third quarter, with the most optimistic outlook being $15 billion. If these estimates are correct, they will be a sign that the company’s revenue accelerated since it made $7.8 billion in the second quarter.
The stock will react to its forward guidance, with analysts predicting that its fourth-quarter revenue will be $20 billion. If their estimates are correct, it means that the company made $45 billion in revenue this year. After that, analysts believe that SpaceX will make $117 billion next year.
In addition to its forward guidance, investors will react the potential merger with Tesla, which Elon Musk has hinted in the past. Odds that the two companies will merge have continued rising on Polymarket. Such a move would create a company worth over $3.3 trillion.
SpaceX stock will also react to its capital expenditure and the plans to raise more money. It is spending billions of dollars, especially in its AI business, which is made up of Grok and its data center business. This business has already received large orders from companies such as Google and Anthropic.
SpaceX Stock Price Technical Analysis
SPCX stock chart | Source: TradingView
The two-hour chart shows that the SPCX stock has pulled back in the past few weeks, moving from a high of $176 to the current $147.
This stock has already slumped below the 50-period moving average, a sign that bears are on the driver’s seat today.
On the positive side, there are signs that the stock has formed an island reversal pattern, which happens when a stock forms a big gap and then consolidates. In most cases, this pattern usually leads to a bullish reversal as investors buy the dip.
Therefore, while the overall outlook is bearish, a brief pullback cannot be ruled out. Based on the options market positioning, data shows that the stock may jump to $160.