SpaceX revenue soars 92%, but shares fall after earnings report

The Story in Brief

SpaceX’s revenue rose 92% in the second quarter, beating analyst estimates by about $1 billion, but its shares fell more than 8% in after-hours trading. The company spent over $18 billion on capital expenditure, with more than 86% directed to artificial intelligence.

Starlink subscribers doubled to 12 million and generated just over half of revenue. Rocket launches brought in $962 million but posted a $542 million operating loss. The AI division’s revenue tripled to $2.6 billion, while it recorded a $1.3 billion operating loss. SpaceX reduced its net loss to $541 million. The Hindu reports that a staff share lock-up expiry could more than double the shares available for trading.

The Indian Opinion

The bullish story says AI and Starlink have already transformed SpaceX. The bearish version treats the share fall as proof that the business is failing. Neither view fits the figures neatly. Starlink is profitable, but rockets and AI are loss-making, while heavy spending remains a clear risk. Investors should focus less on Mars promises and more on whether compute leases deliver the projected $6.7 billion over six months, and whether losses narrow.

Source: thehindu.com

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