SpaceX posts smaller-than-expected loss despite scrutiny over AI spending
The rocket and satellite company beat Wall Street's loss forecasts in its first quarterly report as a public company, even as investors question its heavy AI spending and whether Elon Musk has oversold its prospects.
SpaceX has reported its first quarterly results as a public company, beating Wall Street's loss forecasts. The company's revenue surged 92% to $7.8 billion, with adjusted EBITDA of $3.5 billion, roughly 70% above forecasts, according to the Guardian Business.
The company's capital expenditures soared over sixfold to $18.4 billion, with over 80% going towards artificial intelligence. This figure exceeded the $13.22 billion average analyst estimate. Despite this, SpaceX's CFO, Bret Johnsen, claimed that the company is making its money back within a year and that it has been efficient in its deployment of capital.
SpaceX still lost $541 million in the quarter. The company's shares sank 7.5% after-hours following the earnings report, leaving them more than 20% below the first trade on June 12. According to Euronews Business, investors are questioning the company's heavy AI spending and whether Elon Musk has oversold its prospects.
Brief written by urgent.news from Euronews Business, Guardian Business, CNBC World, CNBC Technology, CNBC — 5 reports on this story. Machine-written — may contain errors; check the original before relying on it.
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