SpaceX (NASDAQ: SPCX) stock price is down by 11% in five trading days amid a sell-off across the AI sector. This drop also comes ahead of the company’s Q3 earnings results that are coming out on October 20.
Wall Street expects a jump in the company’s revenue ahead of the earnings results. Speculation around a merger deal with Tesla are also heating up.
SpaceX Investors Await Q3 Earnings Release
Analysts expect SpaceX to report earnings per share of between $0.14 and $0.23, while the revenue is expected to come in at $12.89 billion.
If the EPS meets the analyst estimates, it will be a notable jump from the loss of $0.09 per share reported in SpaceX’s Q2 2026 earnings. The space company had also reported a revenue of $7.81 billion in Q2 2026.
The Q3 earnings are also expected to show a growth in revenue from the Starlink and the space segments.
One day after SpaceX earnings release, Tesla will release its results on October 21, with analysts also expecting an EPS of $0.44 and revenue of $27.8 billion.
As CoinGape reported earlier, Barclays forecasts that SpaceX might announce a deal to acquire Tesla by December 2026.
Data from CoinGape Prediction Markets now shows that there is a 24% chance that the merger announcement occurs before the year ends.
Options Markets Price In a Slight Move for SpaceX Stock
Analyst Panke on X notes that the options is pricing only a 5.3% move in SpaceX stock price through the release of earnings on October 20.
This suggests that the market expects SpaceX stock price to either drop to $140 to rally to $156.
At the same time, Evercore ISI has raised its target on SpaceX stock price from $230 to $275. Evercore analyst Kutgun Maral, opines that SpaceX could close 2026 with an annualized annual revenue of close to $104 billion.
However, JPMorgan has warned that AI stocks might not experience the same swift rebound that stocks recorded in July.
Key Levels to Watch in Spacex Stock Price
The one-day chart for SpaceX stock price shows that the bearish momentum is gaining strength.
The MACD histogram bars are negative and growing in length, while the MACD line that is tipping south suggests that bulls are losing control.
If the downtrend continues, SpaceX stock price might drop to test support at the lower Bollinger band of $138.
However, a close above the resistance at the middle band could trigger an upward move towards the crucial resistance at $171.
