Stock Market Today, Oct. 22: SpaceX Earnings Beat Sparks Profit-Taking
Space Exploration Technologies (NASDAQ:SPCX), better known as SpaceX, a launch vehicles, spacecraft, and satellite broadband services provider, closed at $144.75, down 9.14%. Shares jumped 10% the previous day due to the company's third-quarter earnings strength, but gave way to
On October 22, the stock market witnessed SpaceX's earnings report causing profit-taking among investors. The aerospace and defense company, which provides launch vehicles, spacecraft, and satellite broadband services, closed at $144.75, marking a 9.14% decrease from the previous day. Following its strong third-quarter earnings, SpaceX's shares had surged by 10% the day before.
Investors now find themselves focusing on SpaceX's progress with the Starship test and spectrum regulation for wireless networks. Trading volume for the day reached 193.8 million shares, significantly higher than its three-month average of 99.1 million shares. Since going public in 2026, SpaceX's stock has experienced a 10% decline.
The broader market also experienced declines. The S&P 500 (^GSPC -1.21%) dropped 1.22% to 7,663, while the Nasdaq Composite (^IXIC -2.60%) fell 2.60% to 26,009.
SpaceX's competitors in aerospace and defense, including Rocket Lab (RKLB -4.57%) and Planet Labs PBC (PL -4.59%), also saw their stocks decline. Rocket Lab closed at $51.22, down 4.56%, and Planet Labs at $13.08, down 4.60%.
The recent slide was attributed to profit-taking and the release of about 911.5 million insider shares for sale. SpaceX's Q3 capital expenditures soared to $19.6 billion, compared to $6.9 billion in the previous year.
On October 20, SpaceX reported impressive Q3 results, with sales increasing by 161% year-over-year to $14.6 billion. A significant portion of this growth was from the company's Super Intelligence division, which aims to capitalize on the artificial intelligence boom. This division generated $7.6 billion in revenue for the quarter, up substantially from $813 million in 2025.
Additionally, CEO Elon Musk's comments on the potential merger between SpaceX and Tesla played a role in driving up shares. During the earnings call, Musk stated that both companies had formed special committees to discuss this possibility.
Recently, SpaceX's announcement of a nationwide low-band spectrum deal with Grain Management for direct-to-device phone coverage across the U.S. had sent telecom stocks into a decline. This move marks a significant step towards SpaceX offering widespread coverage through its satellite services.
Written by urgent.news from Motley Fool's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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