- SPCX
- NVDA
Space Exploration Technologies (NASDAQ: SPCX) went public on June 12 in one of the highest-profile debuts ever. That’s due in large part to the record-setting numbers: The company raised $85.7 billion, making it the largest initial public offering (IPO) in history by a country mile.
Shares rocketed up in the days that followed, but things haven’t been so rosy since. The stock closed its IPO day at $160.95. It’s now down more than 17% to roughly $133 as of Aug 8.
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That’s a rocky two months. But many investors see it as a major opportunity — a chance to snag shares at a steep discount. So, is this the time to buy in? What might $10,000 invested today turn into in five years?
SpaceX by the numbers: What the financials actually show
Let’s start with what the company actually looks like today. In the second quarter, SpaceX brought in $7.8 billion in revenue — up 92% year over year — while narrowing its operating loss to just $143 million. Its net loss came in at $541 million.
Most of the good news, financially speaking, still comes from onen in revenue — up 66% year over year — and brought in a healthy operating profit of $1.65 billion, up 79%
Of course, that’s a bit rosier view than reality. When SpaceX launches its own Starlink satellites, the rocket business doesn’t book any revenue for the launch. Instead, the launch costs are capitalized within the Connectivity segment and depreciated over time.
That makes the Space segment look considerably worse on paper. It brought in just $962 million in revenue during the quarter and posted a $542 million operating loss. These numbers would look much better if it were charging Starlink at market rate — of course, that means Starlink wouldn’t look quite like the financial unicorn many people see it as.
The AI segment, on the other hand, is still bleeding money — a lot — though the picture has improved thanks to new compute contracts with Anthropic and Alphabet. Revenue more than tripled year over year to $2.56 billion, while its operating loss narrowed to roughly $1.26 billion. But that is because it is spending at an eye-watering rate: $15.8 billion on AI capital expenditures in Q2 alone.
