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SpaceX shares fall 13% after AI spending swamps quarterly beat
SpaceX said it plans to keep capital expenditure near second-quarter levels over the next two quarters as it expands AI computing capacity, drives Starship production, and builds next-generation Starlink satellites.
SpaceX shares dropped 13% in Wednesday trading to an intraday low of $109.21, even after the company reported better-than-expected quarterly revenue and a narrower-than-expected loss, according to LiveMint Markets. Investors zeroed in on the company’s sharply higher artificial intelligence spending plans, which were seen as diluting the impact of the earnings beat.
SpaceX reported spending $18.4 billion on capital expenditure during the June quarter, a six-fold increase from a year earlier and well above analysts’ expectations. The company said the bulk of the investment targeted expanding AI infrastructure, using nearly one-fifth of the $85.7 billion it raised in its June IPO, leaving it deeply free-cash-flow negative.
The AI segment generated $2.6 billion in second-quarter revenue, more than three times the level from a year earlier, but it remained loss-making. LiveMint Markets reported the segment posted an operating loss of $1.26 billion, improved from the $2.39 billion loss analysts had expected.
SpaceX said the heavy spending is unlikely to slow, with CFO Bret Johnsen stating that capital expenditure over the next two quarters is expected to remain broadly in line with second-quarter levels. The company also reported revenue of $7.8 billion, a loss of 9 cents per share, and that its Starlink unit ended the quarter with 12 million subscribers.