SpaceX spooks investors with debut earnings report
Shares slide in pre-market trading even as group says its quarterly revenues nearly doubled.
Shares slide in pre-market trading even as group says its quarterly revenues nearly doubled.
The short version
- SpaceX shares dropped on Wednesday after Elon Musk’s plans for blockbuster spending to position his AI and rocket company as a data center developer spooked investors.
- SpaceX surpassed analysts’ expectations in Tuesday’s debut earnings report, posting quarterly revenues of $7.8 billion, well above analysts’ estimates of $6.82 billion and up 92 percent from a year earlier.
- It posted a net loss of about $541 million, better than estimates of $2.12 billion.
What happened
But shares in SpaceX fell 10 percent in early trading after it reported capital expenditure of almost $16 billion on AI, double the previous quarter and well above Wall Street’s expectations. It said spending would persist at current levels for at least two more quarters.
Why it matters
The earnings report comes after SpaceX raised $86 billion in a historic initial public offering in June that was underpinned by expectations that it will generate meteoric revenue growth in coming years.
Summary by Nerd News Network. Read the full article at Ars Technica via the links above and below.