SpaceX Stock Falls 9% as Soaring AI Spending Raises Profitability Concerns

Shares of SpaceX (SPCX) declined by as much as 9% following the company's first quarterly financial report since its initial public offering. The rocket manufacturer's stock experienced a sell-off as a sixfold increase in capital expenditures, largely driven by investments in artificial intelligence (AI) infrastructure, sparked investor concerns about profitability, despite the company surpassing revenue expectations.

According to the company's second-quarter 2026 report, SpaceX recorded revenues of $7.81 billion, exceeding analyst consensus estimates of $6.8 billion to $6.9 billion, marking a significant 92% year-over-year growth. The net loss narrowed to $541 million, an improvement from the $1 billion loss reported in the prior year, with a loss per share of $0.09, better than expected. However, capital expenditures (CapEx) surged sixfold year-over-year to $18.3 billion, significantly surpassing market estimates of $13.2 billion. A substantial portion of this increase, $15.8 billion, was allocated to AI investments.

SpaceX's AI segment revenue saw a remarkable 247% year-over-year increase, reaching $2.56 billion, while its connectivity unit, which includes Starlink satellite internet services, reported revenues of $4.29 billion, up 66%. Starlink's subscriber base also doubled from a year ago to 12 million. While the company's Chief Financial Officer, Bret Johnsen, stated that the payback period for AI investments is less than one year, analysts quoted by The Wall Street Journal expressed apprehension that expenditure growth is outpacing revenue growth.

Markets reacted cautiously to SpaceX's aggressive AI investment strategy. The company's shares fell between 7% and 12% in after-hours trading and during Wednesday's open. The fact that Starlink remains the company's only profitable segment, with both AI and space units still incurring losses, prompted investors to re-evaluate cash flow and long-term profitability prospects. While JPMorgan analysts raised their price target, Wells Fargo analysts cut theirs due to broader caution regarding AI spending.

This financial development marks SpaceX's first publicly disclosed financial statement since its historic IPO in June. The company announced plans to build AI data centers in space and exclusively utilize Nvidia (NVDA) chips. CEO Elon Musk reiterated his expectation that the company could achieve $1 trillion in annual revenue by 2030, or potentially 2029, yet the high short-term capital expenditures created uncertainty in the market.

Analysts and market observers are questioning the sustainability of the company's rapid investment pace. Furthermore, the upcoming lock-up expiration on August 6, 2026, which allows early investors and employees to sell shares, could exert additional selling pressure on the stock. This suggests that volatility in SpaceX shares may continue in the near term.