TLDR
- SpaceX shares fell over 9% despite reporting stronger-than-expected second-quarter revenue and a narrower quarterly loss.
- Capital expenditures reached $18.4 billion, with $15.8 billion directed toward expanding artificial intelligence infrastructure investments.
- SpaceX expects elevated spending to continue while expanding Starlink, Starship production, and AI computing capacity through 2026.
- AI revenue more than tripled year-over-year, though the business remained unprofitable on an operating basis during quarter.
- Investors remain focused on cash burn, infrastructure spending, and post-IPO share performance below the listing price.
SpaceX shares fell more than 9% on Wednesday after investors focused on the company’s rising artificial intelligence spending despite stronger-than-expected second-quarter revenue and a smaller quarterly loss.
SpaceX Shares Slide Despite Strong Quarterly Results
SpaceX stock traded near $114.60 during Wednesday trading after falling as much as 8.6% from the previous session. The decline pushed the shares further below the company’s $135 initial public offering price set during its June listing.
The selloff followed SpaceX’s second-quarter earnings report, which exceeded analyst expectations on revenue. The company reported $7.81 billion in revenue, up 92% from the same quarter last year and above estimates of approximately $6.8 billion.
SpaceX also reported a net loss of $541 million. The figure came in well below analyst expectations of roughly $1.9 billion. The earnings release marked the company’s first quarterly report since becoming a publicly traded company.
AI Infrastructure Spending Draws Investor Attention
Investor focus shifted to the company’s capital spending, which reached $18.4 billion during the quarter. SpaceX allocated approximately $15.8 billion of that amount to artificial intelligence infrastructure, including data centers and Nvidia-powered computing systems.
Quarterly capital expenditures increased from $10.1 billion in the first quarter and exceeded market expectations of about $13 billion. Company executives also stated that spending is expected to remain at similar levels over the next two quarters as investments continue across AI computing, Starship production, and the next generation Starlink network.
The company remained negative on free cash flow during the quarter as infrastructure investment exceeded cash generated by operations. SpaceX raised about $85.7 billion during its June public offering, with second-quarter capital spending accounting for more than one-fifth of those proceeds.
Cloud Business Expands as AI Investment Continues
SpaceX reported that its artificial intelligence business generated approximately $2.6 billion in quarterly revenue. Revenue from the segment more than tripled compared with the same period last year, although the business remained unprofitable on an operating basis.
Chief Financial Officer Bret Johnsen said new computing investments are delivering payback periods of less than one year. He added that the company signed an additional $6.7 billion in cloud computing agreements after the quarter ended.
SpaceX expects its computing capacity to exceed two gigawatts before the end of 2026 as it expands data center infrastructure. The company continues positioning artificial intelligence services as an additional source of revenue alongside its Starlink satellite business.
Management also said capital expenditures will remain elevated while the company develops terrestrial computing facilities and advances longer-term plans for computing infrastructure in orbit.
Get 3 Free Stock Ebooks
Discover top-performing stocks in AI, Crypto, and Technology with expert analysis.
- Top 10 AI Stocks - Leading AI companies
- Top 10 Crypto Stocks - Blockchain leaders
- Top 10 Tech Stocks - Tech giants
