SpaceX (SPCX) - does anyone have it in their portfolio and what are your thoughts? What are your thoughts on the long-term potential of the stock?
SpaceX created the highest number of employee millionaires during an initial public offering (IPO).
Although its stock rocket is currently somewhat grounded, I reasonably assume this is only temporary.
With the first quarterly report behind us, let's look at the numbers and guidance for the coming period.
In its first report following its June IPO, SpaceX beat analyst expectations with revenue of $7.81 billion, exceeding the expected $6.93 billion, while the loss per share came in at $0.09, significantly better than the expected loss of $0.26. Revenue surged 92% year-over-year, while the net loss narrowed from $1 billion to $541 million.
Capital expenditure more than quadrupled to $18.37 billion, with a staggering $15.83 billion directed toward AI infrastructure development. Management highlighted that these investments are paying off very quickly and expects annual recurring revenue (ARR) to reach $100 billion by the end of the year.
The largest contributor to revenue was the Connectivity segment, which includes Starlink, generating $4.29 billion in revenue and $1.66 billion in operating profit. The AI segment reached $2.56 billion in revenue, while the Space segment generated $962 million. Both of these segments continue to operate at a loss.
Elon Musk announced that SpaceX will build AI data centers exclusively using Nvidia chips and plans to scale computing capacity to over 2 gigawatts by the end of 2026 and nearly 10 gigawatts by the end of 2027. The company also unveiled a partnership with Nvidia to develop space-based AI data centers.
Starlink continues its rapid expansion, and SpaceX plans to launch a standalone Starlink Mobile cellular service by the end of 2027, aiming to attract subscribers from major US telecom operators such as AT&T, Verizon, and T-Mobile.
c/p Ivan Stojanovic