Tag: Starship

  • SpaceX Q2 2026 Revenue Surges to $7.8B as AI Investment Weighs on Stock

    SpaceX Q2 2026 Revenue Surges to $7.8B as AI Investment Weighs on Stock

    SpaceX reported second-quarter revenue of $7.8 billion, a 92% increase year-over-year, driven by strong growth in its Starlink satellite internet and artificial intelligence businesses. However, the company posted a net loss of $541 million, and shares fell about 11% in pre-market trading after the earnings release as investors focused on rising capital expenditures tied to AI infrastructure.

    Starlink remained the largest revenue contributor, generating $4.29 billion in the quarter, up from $2.59 billion a year earlier. The satellite internet service now has 12 million subscribers, and CEO Elon Musk said during the earnings call that Starlink could eventually deliver a majority of the world’s internet.

    SpaceX’s AI segment also saw significant growth, with revenue rising to $2.56 billion from $737 million in the same period last year. The company provides computing capacity for AI projects and works with partners including Google and Anthropic. It currently operates 1.4 gigawatts of AI computing capacity and plans to expand to at least 10 gigawatts next year. However, the AI division recorded a $1.2 billion loss despite generating $2.5 billion in revenue.

    Capital spending surged to about $18 billion during the quarter, compared with less than $3 billion a year earlier. CFO Bret Johnsen said spending would remain at a similar level for the rest of the year. The increased costs, combined with a $542 million loss in the space division, fueled investor concerns after the earnings report.

    SpaceX shares had gained 9.43% during regular trading on Tuesday, closing at $125.33, but reversed course in after-hours trading. The stock had already declined from its June high following the company’s public listing.

    Musk said SpaceX expects its AI investments to support future growth and reiterated a goal of reaching $1 trillion in annual revenue by 2030, one year earlier than his previous estimate. The company continues to focus on its Starship program, with President Gwynne Shotwell stating that SpaceX aims to send astronauts to the Moon by 2028 through NASA’s lunar program.

    SpaceX’s earnings report also revealed changes in the value of its Bitcoin holdings. The company held 18,712 BTC at the end of the second quarter, with the value falling to about $1.1 billion from $1.64 billion at the end of 2025. SpaceX did not indicate plans to sell its holdings.

  • SpaceX’s First Earnings Report: Starlink Profits, AI Spending, and Starship’s Future

    SpaceX’s First Earnings Report: Starlink Profits, AI Spending, and Starship’s Future

    SpaceX is set to release its first quarterly earnings report since its blockbuster initial public offering, giving investors a detailed look at whether the company’s financial performance can sustain Elon Musk’s ambitious expansion into artificial intelligence and space technology. The results, due after the market closes on Tuesday, August 4, 2026, are expected to reveal how effectively Starlink’s profits can fund growing investments while justifying SpaceX’s lofty valuation.

    Starlink Remains the Financial Backbone

    Analysts project Starlink, SpaceX’s satellite internet division, will report around $3.82 billion in revenue and $1.42 billion in operating profit for the second quarter, fueled by subscriber growth and expansion into new markets. However, investors are increasingly questioning whether Starlink alone can finance the company’s rapidly rising spending on AI infrastructure and next-generation space projects.

    “Starlink is executing beautifully, but it cannot single-handedly fund a $30 billion annualized AI capex program,” said Will Rhind, founder and CEO of GraniteShares, an asset manager offering ETFs tied to SpaceX stock performance.

    AI Spending and Capital Costs in Focus

    Wall Street will closely monitor SpaceX’s capital expenditure, forecast to reach nearly $14.05 billion during the April–June quarter. A significant share of that investment is tied to AI ambitions, including compute infrastructure, advanced software development, and future data center projects. While analysts expect the AI segment’s revenue to nearly triple to $2.33 billion, many believe profitability could take much longer because of the substantial investment required. Overall, SpaceX is expected to report approximately $6.93 billion in second-quarter revenue but an operating loss of about $1.55 billion.

    “The key question for investors is whether SpaceX can monetize its AI infrastructure through third-party compute fast enough to offset xAI’s extraordinary capital intensity,” said Michael Monaghan, portfolio manager of the Founders 100 ETF (FFF.Z), which holds SpaceX shares.

    Starship Progress Could Shape Long-Term Outlook

    Beyond financial results, investors will also look for updates on Starship, the reusable rocket central to SpaceX’s long-term growth strategy. Starship is expected to support future Starlink expansion, NASA’s Artemis Moon missions, and potential space-based computing infrastructure. Recent tests successfully deployed upgraded Starlink V3 satellites, although the Super Heavy booster did not complete its planned splashdown.

    According to analysts, the future progress of Starship is crucial for SpaceX to retain investor confidence as it balances significant expenses with future growth. Given the questions surrounding AI investments, profitability, and upcoming share lock-up expirations, this earnings report is among the most important events for SpaceX since it became a publicly traded company.

  • SpaceX Stock Drops to New Low Despite Starship Flight Success

    SpaceX Stock Drops to New Low Despite Starship Flight Success

    SpaceX shares fell to a record low on Monday, even after the company’s Starship completed its most successful test flight yet. The stock dipped below $109 before closing 1.4% lower at $113.50, extending a decline that began after its IPO in June.

    Investors are now looking beyond launch milestones. They are focused on whether Starship can achieve high flight rates, safe returns, and cost-effective operations to support SpaceX’s long-term ambitions.

    Starship Achieves Key Flight Milestones

    Starship lifted off from Starbase, Texas, on Friday during its 13th test flight. The mission deployed 20 next-generation Starlink V3 satellites, completed an engine relight in space, and ended with the upper stage making a controlled splashdown in the Indian Ocean.

    SpaceX spokesperson Dan Huot expressed excitement during the livestream, calling the mission ‘lucky number 13.’ The spacecraft remained intact after landing, providing engineers with valuable heat shield data from reentry.

    However, the Super Heavy booster did not complete its planned landing sequence. Five engines failed to restart during the landing burn, causing the booster to hit the Gulf of Mexico harder than intended. SpaceX did not plan to recover either vehicle.

    The mission followed an engine-ignition abort on July 16 and a weather delay on July 23. Elon Musk said SpaceX may attempt to catch the Starship upper stage with its launch tower during Flight 14, pending a thorough data review.

    SpaceX Stock Continues Post-IPO Decline

    SpaceX stock closed at $115.07 on Friday before the launch, after falling 2.7% during the session and 7.2% over the week. Monday’s decline pushed shares further below the company’s $135 initial public offering price.

    The stock has lost nearly half its value since reaching a post-IPO high above $225 in June. Short sellers have built positions during the decline, while investors question the company’s valuation and spending plans.

    Alex Morris, CEO of F/m Investments, said the shares could move into ‘double digits.’ He acknowledged SpaceX’s strong product and limited direct competition but attributed some volatility to the company’s growing focus on artificial intelligence.

    SpaceX plans to report second-quarter results on August 4. The release will give investors their first detailed look at quarterly revenue, costs, cash usage, Starlink growth, and spending across space and AI operations.

    Starship Becomes Central to Future Plans

    SpaceX is shifting its launch strategy toward Starship and away from Falcon 9. Reports indicate the company has turned away some satellite operators seeking dedicated Falcon 9 launches after 2028 and stopped accepting new rideshare reservations for later missions.

    The company has also reduced production of some non-reusable Falcon components. This shift makes Starship’s reliability, reuse, and launch rate critical to operations, as Falcon 9 supports commercial launches and much of the Starlink deployment schedule.

    Investors are monitoring the cost of repairing Starship after reentry and the turnaround time between flights. SpaceX aims to increase launch frequency sharply, but each test carries technical risk and can face hardware or weather delays.

    SpaceX has not confirmed a date for Flight 14. Any tower-catch attempt depends on the company’s review of Flight 13 data, including engine performance, reentry conditions, heat shield results, and splashdown control before approving the next flight.

  • SpaceX Stock Price Target Set at $300 by Morgan Stanley Amid AI and Starlink Growth Prospects

    SpaceX Stock Price Target Set at $300 by Morgan Stanley Amid AI and Starlink Growth Prospects

    Morgan Stanley has issued a $300 price target for SpaceX stock, marking one of Wall Street’s highest valuations for the newly public company. Analyst Adam Jonas initiated coverage with an ‘Overweight’ rating, describing $300 as the firm’s base case. As of July 20, SpaceX shares traded at $123.99, below the $135 IPO price set on June 12.

    The target implies approximately 142% upside from the current market price. However, Morgan Stanley employed an ‘intentionally wide’ valuation range, with a bear case of $75 and a bull case of $600. This wide spread reflects the numerous projects that must meet growth and cost targets over many years.

    AI Growth Drives Morgan Stanley’s Optimism

    Morgan Stanley projects SpaceX revenue will surge from $18.7 billion in 2025 to $319 billion by 2030—growth of about 17 times within five years. The bank forecasts revenue could reach $3.3 trillion by 2040, with AI services contributing a significant share.

    The forecast extends beyond rocket launches and Starlink internet services. Morgan Stanley’s model includes terrestrial data centers, enterprise AI services, satellite connectivity, and orbital computing. SpaceX’s acquisition of xAI in February integrated the Grok developer and its computing assets into the wider company.

    In its IPO filing, SpaceX presented a $28.5 trillion total addressable market, with approximately $26.5 trillion coming from AI-related markets and the remaining $2 trillion from space and connectivity. These figures represent the full market SpaceX could serve, not company revenue forecasts.

    Orbital Data Centers Underpin Long-Term Case

    SpaceX plans to leverage Starship and large satellite networks to support computing infrastructure in orbit. The company has discussed placing AI data centers above Earth, where satellites could use solar power and avoid land, power, and cooling constraints faced by ground facilities.

    However, this plan depends on Starship achieving regular and lower-cost operations. SpaceX postponed its 13th Starship test on July 16 after an engine issue triggered an automatic abort, causing shares to extend their decline and close below the IPO price for a second session.

    Starship also supports future Starlink launches. Larger satellites and higher launch capacity could expand broadband coverage and carry more computing equipment. Morgan Stanley treats launch reliability, satellite deployment, and AI demand as interconnected components of the $300 valuation.

    Valuation and Supply Risks Loom

    SpaceX reported a $4.9 billion net loss on $18.7 billion of revenue in 2025. The stock climbed as high as $225.64 after the IPO before losing more than 40% from that peak. The current market price values the company near $1.63 trillion.

    The stock faces potential selling pressure from share lockup expirations after the company reports second-quarter results. Reports indicate approximately 1.37 billion shares could become eligible for sale. While eligible shares do not always enter the market, a larger tradable supply can add volatility.

    Morgan Stanley’s $300 target rests on long-range estimates rather than current earnings. The $75 to $600 range illustrates how the valuation changes under different launch, AI, and cash-flow assumptions. SpaceX’s earnings reports, Starship tests, and AI contracts will provide fresh data for these forecasts. The stock remains sensitive to launch updates.