{
  "id": 10385634,
  "title": "SpaceX sheds $120 billion after quarterly results",
  "url": "https://urgent.news/2026/09/28/spacex-sheds-120-billion-after-quarterly-results",
  "topic": "world",
  "section": "World",
  "published": "2026-09-28T06:03:34.000Z",
  "source": {
    "name": "Arabian Post",
    "slug": "arabian-post",
    "url": "https://thearabianpost.com/spacex-sheds-120-billion-after-quarterly-results/"
  },
  "original_language": "en",
  "account": "SpaceX suffered a $120 billion loss in market value in a single day following its first quarterly results as a publicly traded company. Investors were particularly concerned about the substantial costs associated with the company's AI expansion, even as revenue increased and losses narrowed. Following the earnings release on August 5, SpaceX's shares fell 13.61% to close at $108.27, erasing approximately $120 billion from the company's equity value. This sharp decline followed the release of results after the previous day's close and highlighted the company's heavy capital requirements. SpaceX allocated around $18.4 billion to capital expenditure during the second quarter, with a significant portion, about $15.8 billion, directed towards AI computing infrastructure. This AI spending more than doubled the $7.7 billion invested in the previous quarter and surpassed the company's revenue of $7.8 billion for the quarter, which represented a 92% increase year-over-year. Despite the increased revenue and narrowed loss, SpaceX's AI segment remained unprofitable on an operating basis, although adjusted EBITDA turned positive. The company's AI revenue grew significantly, driven by monetizing computing capacity at its Colossus facilities and new cloud-services agreements contributing $1.6 billion of incremental AI infrastructure revenue. However, the heavy upfront expenditure raised questions about the sustainability of SpaceX's investment strategy and its ability to generate sustained revenue and cash flow. Chief Financial Officer Bret Johnsen emphasized the importance of capital efficiency and returns, while CEO Elon Musk projected the company would reach a $100 billion annualized revenue run-rate by the end of 2026, with AI cloud services expected to play a major role. Despite these ambitious targets, the success of such projections depends on converting heavy upfront expenditure into sustained revenue and cash generation. Starlink remained the company's primary profitable operating engine, with connectivity revenue up 66% year-on-year to $4.3 billion, aided by subscriber growth and expanding enterprise and government business. SpaceX also reported progress in traditional space operations, including Starship testing and government contracts, with over $6 billion in multi-year US government awards for its Starshield national-security satellite business. The August sell-off occurred less than two months after SpaceX completed its initial public offering, which priced at $135 per share and raised $85.7 billion in net proceeds. SpaceX's Class A shares began trading on Nasdaq as SPCX on June 12, initially surging to $225.64 before correcting to below its IPO price by the time of the post-earnings decline.",
  "summary": "SpaceX lost about $120 billion in market value in a single session after its first quarterly results as a listed company, as investors focused on the enormous cost of its artificial-intelligence expansion despite sharply higher revenue and a narrower loss. Shares of Space Exploration Technologies Corp fell 13.61% on August 5 to close at $108.27, wiping roughly $120 billion from the company’s…",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}