SpaceX has posted its first earnings report after public listing on Wall Street and has beaten every estimate to show a significant uptick in value.
The Elon Musk-owned space technology company, which marked the largest IPO in US corporate history in June, reported $7.81 billion in second-quarter revenue.
This is comfortably ahead of the $6.93 billion analysts expected, with a loss of just 9 cents per share. Experts previously forecast a loss of 26 cents per share.
Starlink internet service provider’s parent company’s revenue was up by 92% from $4.1 billion a year earlier. The earnings report suggests that SpaceX is not struggling to justify its valuation but it is growing faster and losing less money than the market had priced in.
And yet the stock fell in after-hours trading anyway. That disconnect is the real story here, and it says more about where SpaceX stands as a public company than the headline beat does.
SpaceX’s June IPO was the largest in history, pricing at $135 a share and raising $85.7 billion, with shares briefly touching $225.64 within days as investors piled into the most anticipated listing in years.
Since then, the stock has seen a steady decline with price dropping around 45% from that peak, trading around $120 heading into Tuesday’s report.
The estimates suggest that stock price decrease has erased close to half a trillion dollars in the company’s market value.
Why stocks fell even when company posted healthy revenue surge?
SpaceX’s stock price isn’t falling because the company is doing badly.
The bigger reason is that many investors expected very big success from several expensive projects at the same time.
These projects include:
- Starlink, which provides internet through satellites.
- Starship, the giant rocket SpaceX is developing.
- A new AI computing business, where SpaceX wants to compete with big technology companies like Nvidia, Microsoft, and Google.
When people bought SpaceX shares, they weren’t just investing in a rocket company. They were betting that all three of these businesses would become huge successes.
The latest financial report was the first real test of whether SpaceX is making enough money while spending billions on these projects.
Some investors felt the results weren’t strong enough to justify such high expectations, so they started selling their shares, causing the stock price to fall.
2026-08-05 01:46:00
