SpaceX stock falls 8% as first earnings beat is overshadowed by $18B capex

SpaceX's stock slid over 8% in late trading following the company's first earnings report since its June IPO, despite beating Wall Street expectations. The private aerospace company reported a net loss of $541 million, or nine cents per share, on $7.81 billion in revenue, up 92% year-over-year. Capital expenditure for the quarter exceeded $18 billion, significantly higher than the $2.83 billion spent in the same period last year and well above the $13 billion forecast by analysts.

The company's focus on artificial intelligence, driven by its xAI business, led to a 247% revenue increase to $2.56 billion, but the segment still reported a $1.26 billion operating loss. Connectivity, the Starlink segment, remained the profit center, with revenue climbing 66% to $4.29 billion and operations income up 79% to $1.66 billion.

SpaceX secured major contracts from airlines and government clients, while its secure network for government customers, Starshield, signed more than $6 billion in multiyear U.S. contracts. The company also acquired Anysphere Inc., the maker of the Cursor coding tool, for $60 billion, with the deal expected to close in the third quarter.

Despite the setback, SpaceX's balance sheet remains strong, with $100 billion in cash and cash equivalents, and $47.5 billion in backlog.