SpaceX Stock Price Outlook as Hedge Funds Erase Nearly 2 Years of AI Buying in 5 Days

AI stocks, including SpaceX (NASDAQ: SPCX) stock have been in turmoil over the past week. Per Goldman Sachs, these stocks recorded five straight days of selling pressure from hedge funds, which wiped out all the buying that they have done since 2025.

SPCX shares are now down by 8.6% in five trading days, and down 10.7% in one month.

Analysts are warning that the downtrend may continue as hedge funds also turn bearish on the AI sector for the first time in three years.

However, reports of talks between SpaceX and EchoStar to buy Boost Mobile are improving the short-term sentiment on the stock.

Hedge Funds Flip Bearish on AI Stocks After Massive Selloff

Goldman Sachs notes that hedge funds sold AI stocks every day between October 8 and October 14. They have now erased all their AI purchases since early 2025. It also coincided with them dumping $20 billion worth of technology stocks within two weeks.

Goldman Sachs clarifies that the hedge funds are not short-selling these AI stocks. Instead, they are selling what they already own, and the selling is outpacing buying by 3.5 times.

Meanwhile, the Morgan Stanley AI stock basket dropped by 18% in October. The investment bank also trimmed its stock positions by over 8%, marking the biggest daily cut since 2016.

During this October AI selloff, SpaceX stock price dropped by 10.6%, and it also closed the month of October at its lowest price since August 24.

Hedge funds have also shifted overweight AI stocks, marking the first time they have done this since early 2023. This outlook may weaken the sentiment around SpaceX stock, which could weaken the buying pressure and push the price lower.

Analysts Warn of Further Dips in SpaceX Stock Price After Recent Selloff

Analysts are warning that SpaceX may edge lower between November and December as AI stocks teeter from the recent selloff.

Analyst Aralez notes that the stock is in the final phase of the selling phase before whales accumulate. However, he notes that the shares might drop below $100 before bottoming at $60.

Analyst Ali Charts also notes that SpaceX stock price is now approaching a support zone after dropping to $134. He notes that if the selling pressure remains high, the shares may move to $108.

The stock also faces headwinds due to the upcoming US elections on November 3, with a recent Bloomberg survey noting that 42% of US investors expect the S&P 500 index to weaken if the Democratic Party wins the House and Congress majority.

The pre-election outlook suggests that Democrats will likely win a majority in both houses, which may weigh on SpaceX stock price.

Boost Mobile Acquisition Talks Improve Sentiment

SpaceX stock price was up slightly by 1.6% in pre-market trading at the time of writing following reports that the company is in talks to buy Boost Mobile.

According to a report by the Washington Post, SpaceX has held talks with EchoStar to create its own wireless service, a move that has increased speculation that the company is planning to venture into the $235 billion US wireless market

CNBC’s Squawk Box host, Jim Cramer, notes that the deal could drive a “ton of stock,” with the deal also coming after the FCC voted to move ahead with a proposal to open more spectrum to direct-to-device satellite devices.

If this buyout plan is successful, it will drive notable gains for SpaceX stock price, and this is evidenced by the slight uptrend taking place in pre-market trading.

SpaceX Stock Outlook as Price Jumps From 10-Week Low

The daily chart for SpaceX stock shows that the price has recorded a sharp downtrend since early October that has pushed it below the support at $135.

Whilst SPCX shares have bounced from this psychological price in pre-market trading, it needs a confirmed close above the 61.85 Fib of $150 to confirm a bullish trend reversal.

If the downtrend persists especially if the tech and AI selloff continues post-midterms, SpaceX stock price may retest the support at $124. A further breakdown could push it towards $108.

The oBV line is tipping south and has a reading of -409 million, suggesting that the cumulative selling pressure is outweighing the cumulative buying pressure.

The MACD line that is negative as well as the lengthening histogram bars show that SpaceX stock is in a bearish momentum.

This technical outlook suggests that SpaceX stock price is facing another downtrend in November unless there is a strong uptick in buying pressure.