Starship Reaches Orbit Despite Upper-Stage Engine Malfunction

Overview

• SpaceX’s 14th Starship test reached orbital velocity and released 26 Version 3 Starlink satellites, but a single upper-stage engine failed and shortened the mission.
• The technical result sparked an intraday rally to about $150.80 that reversed as investors booked profits, leaving SPCX shares down roughly 3% at a $145.47 close.
• TD Cowen started coverage with a buy rating and a $200 target and other firms maintained bullish calls, with roughly 76% of analysts rating the stock a buy and an average price target near $224.
• Analysts are lifting revenue forecasts because of SpaceX’s fast-growing terrestrial AI compute leasing business used by customers such as Google and Anthropic, which TD Cowen says could make up most revenue by early 2027.
• The result sharpens near-term stakes for the company: SpaceX must prove repeatable Starship reliability to secure the launch cadence that underpins its AI compute cost case while managing heavy capital spending and prior lockup and insider-sale pressure on liquidity.