SpaceX (SPCX) shares declined in after-hours trading on Tuesday, as Wall Street gave a lukewarm response to the company's first quarterly earnings report since its record-breaking initial public offering in June.
For the second quarter, SpaceX reported revenue of $7.81 billion, a 92% surge from $4.1 billion a year earlier and well above the $6.93 billion analysts had expected. The company also posted a net loss of $0.09 per share, which was better than consensus forecasts.
Despite the headline beat, investor sentiment remains cautious. Since debuting at $150 per share in June, SPCX has fallen more than 16% through Tuesday's close, wiping out hundreds of billions in market value. The post-earnings slide reflects deep concerns about the company's aggressive capital expenditures and mounting operating losses, particularly in its push into AI infrastructure.
Following its merger with xAI in February, SpaceX has committed to building high-density orbital data centers, a moonshot project that contributed to full-year losses of $4.9 billion last year. Traders are also bracing for an upcoming lockup expiration that will release 912 million insider and employee shares for public trading, raising fears of a potential sell-off.
Segment performance in Q2 showed a stark contrast. The Connectivity segment, anchored by Starlink, generated $4.29 billion in revenue, beating the $3.83 billion estimate, and delivered $1.66 billion in operating income—the company's only profitable unit. The traditional Space launch division brought in $962 million (above the $835 million forecast) but recorded an operating loss of $542 million despite holding lucrative NASA contracts.
The AI division, meanwhile, posted $2.56 billion in revenue, exceeding expectations of $2.18 billion, but suffered a $1.26 billion operating loss due to heavy spending on servers and constellation buildouts. This divergence underscores the challenges SpaceX faces as it balances its cash-generative satellite internet business with capital-intensive new ventures.
For investors, the post-earnings dip presents a classic high-risk, high-reward scenario. Starlink's success demonstrates SpaceX's ability to build scalable, cash-generative businesses, but the company's lofty valuation leaves little room for error in its AI orbital compute ambitions. Value-conscious traders may prefer to wait out the lockup period, while long-term believers in Elon Musk's multi-planetary and AI ecosystem might see current weakness as a potential entry point before orbital AI compute reaches commercial scale.
As the market digests these results, attention will turn to how SpaceX manages its cash burn and whether it can reassure investors about its long-term profitability. The upcoming lockup expiry and continued volatility in the stock will likely keep SPCX in the spotlight.
This article is for informational purposes only and does not constitute financial advice.
