Despite a strong earnings report, SpaceX shares declined as investors concentrated on significant capital expenditures and an impending insider lockup expiration.
By Shaurya Malwa, Helene Braun|Edited by Stephen Alpher Aug 5, 2026, 12:12 p.m. 2 min readMake preferred on ShareShare this articleCopy linkX (Twitter)LinkedInFacebookEmailMake preferred on SpaceX stock declines 11% premarket as lockup and spending concerns impact first earnings. (SpaceX/Unsplash)SummaryShow- SpaceX shares dropped 11% in pre-market trading as investor attention shifted to heavy capital expenditures and an approaching insider share lockup expiration, despite a robust first earnings report.
- The company's revenue soared by 92% to $7.8 billion, with adjusted EBITDA nearly tripling to $3.5 billion, but it also recorded a net loss of $541 million and spent $18.4 billion to enhance Starlink, Starship, and AI infrastructure.
- SpaceX retained all 18,712 bitcoin on its balance sheet, experiencing a fair-value hit of approximately $195 million, contributing to earnings volatility.
In pre-market trading on Wednesday, SpaceX shares fell by 11% as investors overlooked a better-than-expected first earnings report, instead focusing on the company's significant capital spending and an insider-share lockup set to expire on Thursday.
Revenue increased 92% compared to the previous year, reaching $7.8 billion and surpassing Wall Street predictions, while adjusted EBITDA nearly tripled to $3.5 billion. Although the company reduced its net loss to $541 million, it reported an expenditure of $18.4 billion in the quarter to expand Starlink, Starship, and its AI capabilities.
Throughout the quarter, SpaceX maintained all 18,712 bitcoin on its balance sheet. By the end of June, this stake was valued at around $1.1 billion, highlighting the accounting risk CoinDesk noted prior to the IPO, as fluctuations in bitcoin prices now affect the public company's quarterly earnings due to fair-value accounting regulations.
This bitcoin stake lost about $195 million in value during the quarter, adding to the volatility of results.
JPMorgan has adjusted its price target for SpaceX from $225 to $240, forecasting that the company's capital expenditures will approach $200 billion in both 2027 and 2028, which would further strain free cash flow. The analysts stated, "We now project capex of nearly $200 billion in both 2027 & 2028, which further pressures free cash flow in 2027, a trend we see across the hyperscalers."
The bank also highlighted the impending lockup expiration on Thursday, during which 911.5 million shares could become available for sale, increasing the public float by 143%. However, it noted that much of this event may already be factored into the stock price, as investors have had plenty of time to prepare.
Raymond James reaffirmed its optimistic $800 price target for SpaceX, asserting that the company's operational performance remains robust.
Currently, shares are trading at $111.80.
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