How to Play SpaceX Stock After the Elon Musk-Led Company Just Closed Its Cursor Acquisition

Acquisitions can tell you a lot about where a company thinks its next big opportunity lies. Sometimes they are about buying technology, sometimes talent, and sometimes they are about putting two businesses together before the market even realizes how well they fit. Elon Musk’s SpaceX (SPCH) latest deal looks like a little bit of all three.

The Elon Musk-led aerospace and satellite communications company has officially closed its $60 billion acquisition of Anysphere, the software company behind the AI coding platform Cursor. The deal became effective on Aug. 14, according to a filing with the U.S. Securities and Exchange Commission. Under the agreement, Cursor shareholders received an aggregate of 389.29 million shares of SpaceX, based on an implied $60 billion equity value and SpaceX’s volume-weighted average closing price over the seven trading days before the deal closed.

And the timing is hard to ignore. Cursor has over a million developers using its AI coding agents, including customers such as Nvidia Corporation (NVDA) and Adobe (ADBE), and competes with major players including OpenAI, Anthropic, and Alphabet's (GOOG)(GOOGL) Google. 

SpaceX clearly sees something much bigger here. The company says combining Cursor’s product and distribution among expert software engineers with its million-H100-equivalent Colossus AI training supercomputer could help build “the world’s most useful models.” SpaceXAI and Cursor are now working together on what the company calls the world’s best coding and knowledge-work AI. So, this is not simply SpaceX buying another software company. It is another step in Musk’s broader push to turn SpaceX into a much bigger AI and technology platform.

However, the market has not exactly celebrated immediately, as SPCX stock slipped slightly on Friday.

That leaves investors with a bigger question. After spending $60 billion on Cursor, does SpaceX stock now offer an opportunity, or is the market already pricing in too much AI ambition? Let’s take a closer look at how investors should play SPCX stock after the acquisition.

About SpaceX Stock

Founded by Elon Musk in 2002 and headquartered in Starbase, Texas, SpaceX operates across space transportation, satellite communications and artificial intelligence (AI). Its reusable Falcon rockets and Dragon spacecraft have reshaped the economics of spaceflight, while Starship is designed to take exploration deeper into space. Starlink has also grown into a global satellite-broadband business serving consumers, enterprises and governments.

After expanding into AI through xAI, SpaceX now has Cursor under its wings, adding a leading AI coding platform to its growing technology ecosystem. Together, these businesses give SpaceX several long-term growth engines beyond rockets.

SPCX stock has had plenty of twists since SpaceX went public on June 12. The shares jumped from their $135 IPO price to above $200 within just three trading sessions, but the excitement soon cooled as investors questioned the company’s valuation and weighed the possibility of selling pressure when post-IPO lockups expired.

That pressure eventually dragged SPCX to a low of $104.83 on Aug. 3. But investors quickly changed their tune. Bargain hunters stepped in, pushing SPCX higher that day and again in the following session as traders positioned themselves ahead of SpaceX’s first public earnings report.

The earnings reaction brought another setback, with SPCX sliding as investors focused on the company’s enormous AI spending plans. Yet the first lockup expiration turned out differently than many expected. Rather than triggering a major wave of selling, it brought short covering and dip buying that helped the shares reclaim the $135 IPO price, and now trading above that.

The stock then rose on Monday ahead of another tranche of shares being unlocked for trading, suggesting investors were once again looking beyond the immediate supply overhang.

Overall, the recent momentum has improved, with SPCX stock up 17% over the past month and 8,82% over the last five trading days.

A Snapshot of SpaceX’s Q2 Numbers and Outlook

Earlier in August, SpaceX released its Q2 earnings report, and the numbers told an interesting story. The company is still spending heavily, but the business is scaling at a remarkable pace. In Q2, SpaceX reported a loss of $0.09 per share, 73.5% narrower than a year earlier. Revenue jumped 91.9% year-over-year (YOY) to $7.8 billion, beating Wall Street’s expectations, and was led by AI cloud services and Starlink expansion.

Starlink had its strongest quarter yet for customer additions. Subscribers doubled to 12 million after the company added more than 1.7 million customers globally in Q2, up from 1.4 million in Q1. Even with that growth, average revenue per user (ARPU) stayed steady at $66 a month. Starlink ended the quarter serving 167 markets and continued opening new ones.

All three operating segments grew, but AI was clearly the standout. Connectivity remained the largest revenue contributor, generating $4.3 billion, up 65.8% YOY. Consumer revenue rose 44.4% to $2.49 billion, while Enterprise & Government revenue more than doubled to $1.8 billion, helped by aviation wins and U.S. government demand.

AI revenue was the real eye-opener, soaring 247.5% annually and 213.1% sequentially to $2.56 billion. New cloud agreements added $1.6 billion in infrastructure revenue, taking total contracted cloud sales to $14.1 billion. SpaceX also increased its nameplate compute capacity to 1.4 gigawatts from 1 GW in Q1 and just 400 MW a year earlier.

The Space segment generated $962 million, up 29% YOY and 55.4% sequentially. SpaceX completed 10 customer launches and 28 internal launches, carrying 485 metric tons into orbit. First-half activity reached 78 launches and 1,041 metric tons. Still, higher Starship R&D spending kept the segment loss-making, with an operating loss of $542 million and an adjusted EBITDA loss of $205 million. Management said Flight 13 met all objectives after quarter-end, supporting plans to deploy operational V3 Starlink satellites on future Starship missions.

The spending side is where things get really interesting. Total costs and expenses rose 57.8% to $8 billion, while R&D jumped 81.2% to $3.55 billion. Yet the consolidated operating loss narrowed sharply to $143 million from $970 million, and adjusted EBITDA reached $3.5 billion.

Capex, however, surged to $18.4 billion, including $15.8 billion for AI. Six-month operating cash flow improved to $3.5 billion, but investing activities consumed $34.5 billion. After $85.7 billion of IPO proceeds and a $25 billion bond offering, SpaceX ended Q2 with $100 billion in cash and marketable securities and a $47.5 billion backlog.

Looking ahead, management expects capex to remain near Q2 levels for the next two quarters and is targeting more than 2 GW of compute by year-end. Newly contracted cloud services worth $6.7 billion are expected to begin ramping in October over six months. SpaceX believes cloud services, Cursor and its other businesses can help push annualized revenue above $100 billion by December. Meanwhile, V3 satellites are expected to bring a major capacity boost, with next-generation Starlink Mobile targeted for launch by the end of 2027.

While SpaceX has not provided official financial guidance for the third quarter, Wall Street has a fairly clear idea of what to expect. Analysts project revenue of $12.82 billion, along with an EPS of roughly $0.09 for the quarter. For the full fiscal year 2026, they estimate a loss of $0.15 per share. Looking ahead, however, analysts believe the company could turn the corner in fiscal 2027, posting an EPS of $1.53, which represents a significant YOY improvement. 

What’s Wall Street’s Take on SpaceX Now?

Overall, SPCX stock carries a “Moderate Buy” rating. Of the 34 analysts covering the stock, 23 recommend a “Strong Buy,” two have a “Moderate Buy,” seven are playing it safe with a “Hold,” one is advising a “Moderate Sell,” and the remaining one analyst is outright skeptical, suggesting a “Strong Sell.”

At current levels, the average price target of $222.16 suggests that SPCX stock has upside potential of 52.2%. Meanwhile, the Street’s highest price target of $800.00 implies SPCX could rally as much as 459%.

Final Thoughts on SpaceX

SpaceX is no longer just a bet on rockets, Starlink or the next big launch. With Cursor now under its wings, the company is making an even bigger push into AI, while its surging revenue and massive infrastructure spending demonstrate ambitious vision.

For investors, SPCX could still have plenty of room to grow, but the stock also comes with high expectations. With Cursor adding another AI growth engine, investors will be watching whether or not these new businesses contribute to SpaceX’s revenue and earnings.