Key Highlights

● SpaceX slipped 0.92% to $143.89 on about 65.33 million shares, near half normal volume.

● Third-quarter Revenue rose 161% to $14.6 billion, with Net Income of $4.4 billion.

● AI capex hit $16.4 billion, with $35 billion to $40 billion planned next quarter.

● A 1.3 billion-share lock-up release on October 22 sent the stock down about 9%.

What kept SpaceX (NASDAQ:SPCX) among the ten most actively traded US stocks on Thursday was its sheer size rather than any dramatic move. Shares of Space Exploration Technologies Corp. slipped 0.92% to close at $143.89, on about 65.33 million shares. That was only about 0.54 times normal Volume on market data, but at a price above $140 it still added up to roughly $9.4 billion of stock, the eighth-highest dollar volume in the market. The company's Market Value stood at about $1.95 trillion, making it one of the largest companies listed in the United States less than five months after its initial public offering.

A quiet session after a volatile fortnight

Thursday's dip extended a soft patch. One report said the stock fell 2.25% to $145.23 on Wednesday, October 28, with no company-specific news, as nearly every space stock declined. Wednesday's turnover of 98.7 million shares was close to the 30-day average of about 103 million, which makes Thursday's lighter volume stand out. Rates were also a headwind for long-duration growth stories, with the same report noting that the 10-year Treasury Yield rose to 5.05% on Wednesday.

The bigger story of recent weeks has been supply. On October 22, a lock-up release freed up to 1.3 billion shares for sale, and the stock dropped about 9% that day, according to one report. Media reports had described that release as the largest unlock yet, and noted that earlier unlocks had barely dented the stock, although the largest prior one, in August, came near its low.

There was also an indirect link to Thursday's big-tech sell-off. Alphabet (NASDAQ:GOOGL), which owns a large stake in SpaceX, reported third-quarter results after Wednesday's close. According to media reports, the stake contributed to an $8.7 billion loss on Alphabet's Equity Investment portfolio in the quarter, and Alphabet shares fell sharply on Thursday. In July, a media report said Alphabet's filings valued its SpaceX holding at $94.1 billion, much of it subject to sale restrictions.

From rockets to AI

SpaceX is no longer just a launch company. It builds and flies the Falcon and Starship rockets, operates the Starlink satellite internet service, and, since acquiring xAI in February 2026, runs a large artificial intelligence business. One account of the IPO says the deal valued xAI at $125 billion and SpaceX at $1 trillion. The company went public on Nasdaq on June 12, 2026, at $135 a share, a valuation of about $1.77 trillion at the offering price. The shares opened at $161 on their first day.

Index providers moved quickly. Nasdaq changed its rules to allow faster entry, and SpaceX joined the Nasdaq-100 on July 7, media reports said, with a weight of about 1.34% at the time. FTSE Russell added the stock to its US indexes in June, and the iShares Russell 1000 ETF already held it. S&P Dow Jones Indices declined to create a fast-track route, and SpaceX is not in the S&P 500. The same account notes that S&P's profitability requirements and SpaceX's 2025 net loss of $4.94 billion stood in the way.

The first quarter as a public company

SpaceX's third-quarter results, filed on October 20, showed how much the Business has changed. According to a summary of the filing, revenue rose 161% from a year earlier to $14.6 billion, and net income was $4.4 billion, compared with a $1.1 billion loss a year before. Starlink, reported in the connectivity segment, grew revenue 69% to $5.2 billion and had 13.6 million consumer subscribers at the end of September, an increase of 1.6 million in the quarter.

The AI segment, labeled Super Intelligence, was the largest contributor, with revenue up 830% to $7.6 billion and Operating Income of $431 million, versus a $1.7 billion operating loss a year earlier. SpaceX also flew its first revenue-generating Starship mission in the quarter, carrying 26 Starlink V3 satellites.

The market initially cheered. Media reports said the stock jumped as much as 9.65% to $162.05 the next morning, on track for its best day in two months, after revenue and profit beat estimates. Elon Musk also said SpaceX and Tesla (NASDAQ:TSLA) had each formed committees to study a merger.

Valuation and the spending question

Market data shows no price-to-earnings ratio for SpaceX, reflecting its short history as a public company and its loss in 2025. On a simple calculation, annualizing the third quarter's $14.6 billion in revenue gives about $58 billion, which would put the $1.95 trillion market value at roughly 33 times that run rate. That is a premium that assumes years of rapid growth.

Spending is the main pressure point. The AI segment alone spent $16.4 billion on Capital Expenditure in the quarter, and the company plans $35 billion to $40 billion of capital spending in the fourth quarter. One analyst said this "suggests a new and higher level of capex than the market expected," while noting a $63 billion Backlog behind it. That puts SpaceX squarely in the same debate that sent Alphabet lower on Thursday.

The bull and bear cases

Supporters point to growth that few companies of this size can match, a profitable quarter, a fast-growing subscriber base at Starlink, and the arrival of Starship as a revenue-generating vehicle. The possibility of closer ties with Tesla adds another potential catalyst. The stock has also held up better than many newer space names: one report said that through October 20 it was down about 2% for the month while the typical newer space stock had fallen about 26%.

Skeptics focus on supply, spending and governance. More lock-up releases are likely as pre-IPO investors' restrictions expire in stages, and insiders' 366-day lock-up ends next year. One account reports that Musk holds about 42% of shares but roughly 82% of the voting power through a dual-class structure. Heavy AI capital spending could absorb much of the company's cash flow, and the shares remain volatile. One report put the 52-week range at $104.83 to $225.64, meaning Thursday's close sits about 36% below the high.

What to watch next

Near term, traders will watch whether the $140 level that market commentary identified as support continues to hold, and how the market absorbs shares freed by recent unlocks. Further updates on the SpaceX and Tesla Merger committees, the pace of Starship flights, Starlink subscriber growth and whether fourth-quarter spending lands within the $35 billion to $40 billion plan are the next fundamental markers. Moves in other AI spenders and in Alphabet, as a major shareholder, may also continue to spill over into SpaceX trading.