Elon Musks SpaceX aims to shake off AI spending fears, stock slump in first-ever earnings report
Elon Musk’s SpaceX will report earnings for the first time since going public on Tuesday in an early test of whether the firm can overcome Wall Street’s fears about its massive spending on AI.SpaceX, which has lost more than $500 billion in market value since its debut in June, will announce its second-quarter results after the bell alongside chipmaker AMD.Tech stocks have been under pressure as investors fret over whether costly AI investments – such as Musk’s plan to build AI data centers in space – will pay off.“SpaceX is an indirect part of the AI trade as its satellite network, launch infrastructure and future data ambitions require huge computing investment,” Mark Vena, CEO and principal analyst at SmartTech Research, told The Post.
“But this report will test whether investors are still happy to reward vision before profits.”The Texas-based company was trading at roughly $111 per share on Monday morning – far below its $135 IPO price.The forthcoming earnings results are just one concern for the stock, which could see additional volatility when the first “lock-up” period blocking early investors from selling their shares expires on Thursday.Musk’s Starlink satellite network accounted for about 60% of SpaceX’s overall revenue last year – and Wall Street will be watching closely to see if its profits are trending in the right direction, according to Stephen Callahan, trading behavior specialist at online brokerage Firstrade.Wall Street is projecting revenue of $3.82 billion and operating profit of $1.42 billion in the second quarter for the Starlink segment.“Unlike the large technology companies, investors have very little history to use when evaluating the company as a public stock,” Callahan said.
“Strong Starlink results and a clear path for its AI investments would help reassure investors, while heavy spending without a clear return could put additional pressure on the shares.”Analysts expect SpaceX’s spending to exce...