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SpaceX shares near all-time lows as Starlink funding worries grow
SpaceX reported second-quarter revenue of $7.8 billion, but Starlink remains the only business generating operating profit.
SpaceX shares are trading near all-time lows as investors focus on whether Starlink can provide enough funding for the companys longer-term, capital intensive ambitions. The stock is down more than 30% since the start of the year and has fallen more than half from its post listing peak, with some investors drawing comparisons to Meta Platforms’ 2012 IPO.
Yahoo Finance reports SpaceX’s second-quarter results, released last Tuesday, showed revenue of $7.8 billion versus an analyst expectation of $6.9 billion, and the net loss narrowed to $541 million from roughly $1 billion a year earlier. Operating loss fell to $143 million from $970 million, but the improvement was partly driven by better performance at Starlink.
Starlink continues to stand out as SpaceX’s only operating-profit generating segment, with its operating profit increasing 79% in the quarter. Other major areas, including AI operations, the rocket business and the Starship program, are still described as consuming substantial capital.
Starlink’s momentum included a doubling of its customer base to 12 million by quarter end across more than 150 countries, while Starlink revenue rose 66% to $4.3 billion. Space-related revenue increased 29% year over year, but the article notes those activities remain expensive to develop.