The Scottish Mortgage Trust share price has come under pressure and moved into a correction as traders reacted to the ongoing earnings season. It also retreated after SpaceX, its biggest constituent company, plunged to a record low. It was trading at 1,361p on Tuesday, down by 12% from its all-time high.
Scottish Mortgage share price falls amid the SpaceX plunge
SMT stock jumped sharply earlier this year as investors waited for the SpaceX IPO, which raised billions of dollars. Since then, however, the stock has plunged sharply and is hovering near its all-time low. This retreat has erased over $1 trillion in value.
The ongoing SpaceX retreat is important for Scottish Mortgage because it is its biggest constituent, accounting for a 17% share.
Focus now shifts to the upcoming SpaceX earnings report, which will come out later today. Analysts expect these results to show that its revenue jumped, helped by its launch, Starlink, and its booming data center business. Analysts anticipate the upcoming results to show that its revenue jumped to over $6 billion in the last quarter.
Wall Street analysts are highly bullish on SpaceX shares, with the consensus view being $230, much higher than the current $114. Some of the most bullish analysts are from companies like RBC, William Blair, Bernstein, and KeyCorp.
Top SMT companies have published strong earnings
On the positive side, some of the biggest companies in its portfolio have published strong earnings recently. TSMC, its second-biggest constituent, released strong numbers, with its revenue jumping to over $40 billion, up by 33% YoY. Its gross margin jumped to 67.7%, while the net profit margin soared to 55.6%.
This growth will likely continue doing well in the coming years as demand for semiconductors jumps. There are no signs that the AI sector is slowing, with companies like Apple, Nvidia, Qualcomm, and AMD issuing strong guidance.
Amazon, another top constituent in the Scottish Mortgage portfolio company, reported strong numbers, with its AWS business continuing seeing strong demand. Other firms like ASML and MercadoLibre also released strong metrics.
Meanwhile, Scottish Mortgage also owns a big stake in Anthropic, the creator of Claude, one of the most advanced AI chatbots in the industry. Recent reporting shows that Anthropic’s annualized revenue continues to grow and will hit $74 billion. Its valuation has moved to over $900 billion, and this figure will cross the $1 trillion mark in the next fundraising.
SMT share price technical analysis
Scottish Mortgage stock chart | Source: TradingView
The daily chart shows that the SMT stock price has dropped sharply in the past few weeks, moving from a high of 1,561p in June to the current 1,365p. It settled above the 200-day Exponential Moving Average (EMA).
The stock has remained above the ascending trendline that links the lowest swings since November 2025. Remaining above this level is a sign that the bullish trend remains intact for now.
Therefore, the stock will likely bounce back, potentially to the key resistance level of 1,500p. However, a drop below the ascending trendline will point to further downside.
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