SpaceX's stock fell over 7% following its first quarterly earnings report as a publicly traded company, despite a 92% revenue increase to $7.81 billion, surpassing analyst expectations. The sharp decline in share price was primarily attributed to a sixfold rise in capital expenditures, reaching $18.4 billion, largely directed towards artificial intelligence.
Analysts, including Chris Beauchamp from IG and Russ Mould from AJ Bell, noted that the significant spending on AI, which exceeds market expectations, has caused investor unease, especially since SpaceX does not yet generate substantial cash flow.
The company's satellite internet division, Starlink, remains its main revenue source, but there are concerns about its ability to secure a path to profitability.
Additionally, the upcoming expiry of the investor lockup could lead to further selling pressure, as insiders may be incentivized to sell shares acquired at lower prices than the current market value, which is below the initial public offering price of $135