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 profit-taking and a share unlock. Investors are watching Starship test progress and spectrum regulation for wireless networks next.

Trading volume reached 193.8 million shares, coming in about 96% above its three-month average of 99.1 million shares. SpaceX IPO'd in 2026 and has fallen 10% since going public.

How the markets moved today

The S&P 500 (SNPINDEX:^GSPC) fell 1.22% to 7,663, while the Nasdaq Composite (NASDAQINDEX:^IXIC) dropped 2.60% to 26,009. Among aerospace and defense launch services, spacecraft manufacturing, and satellite broadband/connectivity peers, Rocket Lab (NASDAQ:RKLB) closed at $51.22, down 4.56%, and Planet Labs PBC (NYSE:PL) closed at $13.08, down 4.60%.

What this means for investors

Thursday's slide followed profit-taking and a share unlock of about 911.5 million insider shares becoming available for sale. SpaceX stock was also under pressure due to the company's Q3 capital expenditures, which soared to $19.6 billion compared to the prior year's $6.9 billion.

The company announced Q3 results on Oct. 20, where it delivered an impressive 161% year-over-year sales increase to $14.6 billion. Part of that growth was due to its Super Intelligence division, which seeks to capitalize on the artificial intelligence boom. This area generated Q3 revenue of $7.6 billion, up substantially from 2025's $813 million.

Along with strong sales, SpaceX shares were galvanized by CEO Elon Musk suggesting the space-based company could merge with Tesla. On the company's earnings call, Musk stated, "Both SpaceX and Tesla have formed special committees to discuss this idea."

This month, SpaceX caused telecom stocks to plunge after the company revealed a nationwide low-band spectrum deal with Grain Management. This is a major step toward SpaceX offering direct-to-device phone coverage across the U.S.

Robert Izquierdo has positions in Planet Labs PBC, Rocket Lab, Space Exploration Technologies, and Tesla. The Motley Fool has positions in and recommends Planet Labs PBC, Rocket Lab, and Tesla. The Motley Fool has a disclosure policy.