SpaceX stock forecast after hitting a $946 million NASA deal

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SpaceX stock has moved sideways at an important price, even after the company received a $964 million deal by NASA. SPCX also wavered as investors waited for the upcoming Starship Orbital test. It trades at $152, up by 47% from its lowest level this year. 

SpaceX stock wavers after reaching a NASA deal

SPCX stock wavered even after the company reached a big deal with NASA. In a statement, the agency awarded it three additional missions through a contract modification. 

The extension, worth about $946 million, will bring the number of missions to 17, and will help it maintain access to the space station. This amount includes ground, launch, in-orbit, and return and recovery operations. The total contract in this program is worth $5.92 billion.

SpaceX is seeing strong growth in its launch business. In its last earnings report, the company said that its space business brought in over $962 million in revenues, up from $746 million in the same period last year. 

The new contract comes as the company prepares to conduct its major Starship test on September 28. This test was initially scheduled for September 22nd, before it was moved to a later date. 

Elon Musk hopes that the new Starship will take the third version of its Starlink satellites in space. The new version will have 10x more capacity than the current one, allowing more speeds for end users. It will help it compete further with telecommunication companies like T-Mobile and AT&T. In a statement, Elon Musk said:

“Even if our monetization per bit dropped by a factor of 10, that would still mean a 10x increase in the revenue of Starlink. I think people are really underestimating Starlink here. This is a big deal.”

Starlink is the biggest cash earner for SpaceX. In its last earnings report, the company said that the connectivity business made over $4.29 billion, up sharply from the $3.2 billion it made last year. Its number of customers jumped to over 12 million, and the trajectory is accelerating. 

READ MORE: SpaceX stock outlook: where will SPCX be in the next five years?

SpaceX is becoming a big data center player

SPCX stock is also benefiting from the ongoing artificial intelligence boom. It runs Grok, a popular chatbot, and a large data center operation. It moved into the cloud services business, by providing access to its Colossus and Colossus II sites in the second quarter. This business contributed $1.6 billion in incremental revenue in the quarter. 

Most notably, the company continues to ramp up its data center operations and has already received some major orders. For example, the company recently inked a $1.1 billion-a-month deal with an unnamed client. It also received orders from companies like Anthropic, Google, and Reflection AI. 

This business explains why analysts believe that its revenue will continue growing in the near term. The average estimate is that its revenue will cross $150 billion next year, much higher than the $18 billion it made last year.

SpaceX stock price technical analysis

SPCX stock chart | Source: TradingView

The two-hour chart shows that the SPCX stock has soared in the past few weeks. It jumped from a low of $104.60 in August to the current $153. 

The stock formed an ascending triangle pattern, a common continuation sign in technical analysis. It has remained above the 50-period moving average. 

Therefore, the stock will have a bullish breakout, potentially to the next key level at $200. 

The post SpaceX stock forecast after hitting a $946 million NASA deal appeared first on Invezz

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