SpaceX pulled in $7.8 billion in Q2 revenue, nearly doubling year-over-year growth and blowing past Wall Street's $6.8 billion estimate. The company swung to a $541 million loss, still a massive improvement from the $1 billion red ink twelve months prior. But that beat didn't move the needle for investors. The stock jumped 9% in regular trading on August 4, then cratered 7% after hours as reality sank in: the company is spending money like there's no tomorrow.
Starlink alone churned out $4.29 billion, pulling in 12 million subscribers even as that figure slightly missed projections. The satellite internet business is firing on all cylinders. AI revenue surged 247% to $2.56 billion, though the division hemorrhaged $1.26 billion operationally as the company is essentially burning cash to build infrastructure faster than competitors can blink.
Capital spending torpedoes investor sentiment
Here's the kicker: SpaceX spent $18.37 billion on capex last quarter. Of that, $15.83 billion went straight to AI infrastructure buildout. Management signaled this pace would stick around through the rest of 2026. That's not growth spending, that's scorched-earth spending. Analysts acknowledge the long-term play makes sense. AI and space-based computing are genuinely valuable bets. But markets hate watching profitability get crushed under expansion budgets, and the stock still trades well below its $135 IPO price.
The company's crypto exposure adds another layer of uncertainty. SpaceX holds 18,712 Bitcoin worth $1.10 billion at quarter-end, down roughly 33% from where those same coins sat at 2025's close. Early investors who got in at the IPO are underwater, waiting for either a turnaround or proof that the spending actually pays off.
This article is for informational purposes only and does not constitute investment advice or a recommendation to buy or sell any security.
