Investors react to heavy capital expenditures and an upcoming lockup expiration, overshadowing strong earnings from SpaceX.
SpaceX shares dropped 11% in pre-market trading as concerns over significant capital expenditures and an insider lockup expiration took precedence over a strong earnings report. The company's revenue surged by 92% year-over-year, reaching $7.8 billion, and adjusted EBITDA nearly tripled to $3.5 billion. However, SpaceX also reported a net loss of $541 million and a hefty $18.4 billion in capital expenditures aimed at enhancing its Starlink, Starship, and AI infrastructure.
Despite these challenges, SpaceX retained all 18,712 bitcoins on its balance sheet, valued around $1.1 billion at the end of June. The value of this stake dropped by approximately $195 million during the quarter, adding to the volatility of its earnings.
Analysts at JPMorgan have revised their price target for SpaceX from $225 to $240, citing expected capital expenditures nearing $200 billion in 2027 and 2028, which could strain free cash flow. Additionally, the impending lockup expiration on Thursday could release 911.5 million shares, increasing the public float by 143%. However, they noted that the market may already have priced in these developments.
