Buzz-SpaceX slips as investors balk at price tag of AI expansion

Shares of Space Exploration Technologies Corp. SPCX.O fell 8.1% to $115.15 in pre-market trade after the company’s debut quarterly report showed revenue nearly doubled, driven by its booming Starlink and AI businesses.

Second-quarter revenue of $7.8 billion beat Wall Street expectations, per LSEG-compiled data, with Starlink revenue up 66% and AI revenue up about 250%, giving investors their first look at financials since the company’s June IPO.

Still, the revenue beat was overshadowed by ballooning capital expenditures, which jumped to over $18 billion from $2.83 billion a year earlier, driven by a $15.83 billion investment in AI infrastructure.

Analysts at Piper Sandler said the lockup expiration overhang will remain a valuation headwind until summer 2027. SPCX stock is about 44% below its all-time intraday high of $225.64 reached on June 16.

The average rating of 34 analysts on the stock is "buy", with 27 "buy" or "strong buy" recommendations.