SpaceX (SPCX) reported second quarter results on Tuesday that topped estimates — its first report as a public company — which comes as the stock has been in a recent free fall. Rising capital expenditures in its Q2 report didn't help matters.
SpaceX's AI segment posted an operating loss of $1.26 billion versus estimates of $2.39 billion, but AI spending ballooned to $15.8 billion in the quarter, larger than expected and much higher than the $7.7 billion spent in Q1.
SpaceX stock slid nearly 10% on Wednesday, nearing recent lows.
The concern with ***** eX's large capital requirements — like those of other large AI frontier startups — is that its AI infrastructure investments will not generate a healthy return given the level of cash required.
"We now project capex of nearly $200B in both 2027 & 2028, which further pressures FCF in 2027, a trend we see across the hyperscalers," JPMorgan ***** yst Doug Anmuth said in a note to investors. On the flip side, Anmuth was impressed by ***** eX's rising annual revenue run rate (ARR), which CEO Elon Musk said could hit $100 billion by the end of the year.
#billion
SpaceX's AI segment posted an operating loss of $1.26 billion versus estimates of $2.39 billion, but AI spending ballooned to $15.8 billion in the quarter, larger than expected and much higher than the $7.7 billion spent in Q1.
SpaceX stock slid nearly 10% on Wednesday, nearing recent lows.
The concern with ***** eX's large capital requirements — like those of other large AI frontier startups — is that its AI infrastructure investments will not generate a healthy return given the level of cash required.
"We now project capex of nearly $200B in both 2027 & 2028, which further pressures FCF in 2027, a trend we see across the hyperscalers," JPMorgan ***** yst Doug Anmuth said in a note to investors. On the flip side, Anmuth was impressed by ***** eX's rising annual revenue run rate (ARR), which CEO Elon Musk said could hit $100 billion by the end of the year.
#billion
2 months ago
