Street View: SpaceX's AI vision wins praise but spending, lockup concerns linger
SPCX•Strong first earnings, but spending outlook weighs
SpaceX SPCX.O Q2 revenue nearly doubled in its first earnings since going public, driven by growth in its Starlink satellite communications and AI businesses
Executives said heavy investment will continue to support the company's long-term expansion plans
Shares drop 11.4% at $111.20 premarket
Analysts see progress, but execution and valuation risks remain
Citigroup ("buy," PT: $200) says SPCX showed "clear progress" beyond expectations on both terrestrial and orbital AI vision
J.P. Morgan ("overweight," PT: $240) says SPCX continues to benefit from extreme vertical integration and the pace of change in AI is incredibly fast
Projects capex of nearly $200 billion in both 2027 and 2028, which could further pressure free cash flow in 2027, a trend it sees across hyperscalers
Oppenheimer ("outperform," PT: $250) says execution risk is high, but SPCX excels in this and expects extreme stock and operational volatility
Piper Sandler ("neutral," PT: $140) says the lockup expiration overhang will remain a valuation headwind until summer 2027
