SpaceX shares fall 12 percent despite strong revenue growth

SpaceX shares fell more than 12 percent to around $109 despite reporting second-quarter revenue of $7.81 billion, up 92 percent year-over-year and above Wall Street expectations. Adjusted EBITDA nearly tripled to $3.5 billion while the company's net loss narrowed to $541 million.

Investor reaction turned negative after SpaceX revealed quarterly capital spending had jumped nearly six times to $18.4 billion. Around $15.8 billion went toward building AI computing infrastructure, raising questions about when these investments will generate returns. Chief Financial Officer Bret Johnsen defended the spending during the earnings call, stating the company expects less than a one-year payback on portions of its AI compute investments.

The primary driver of the sell-off was the expiration of the first phase of SpaceX's rolling lock-up period on August 6, when nearly 912 million shares became eligible for trading for the first time. At current prices, those shares represent approximately $109 billion in value. JPMorgan noted the event could increase SpaceX's public float by around 143 percent, though analysts believe some impact may already be reflected after months of investor anticipation.

JPMorgan also expects SpaceX's capital spending to reach nearly $200 billion annually by 2027 and 2028, creating additional pressure on future free cash flow. SpaceX maintained all 18,712 Bitcoin on its balance sheet during the quarter, valued at approximately $1.1 billion at the end of June. However, the holdings lost roughly $195 million in value during the period as Bitcoin prices fluctuated.