Space Exploration Technologies Corp (NASDAQ:SPCX) reported strong revenue growth in the second quarter of the year, and lofty forward guidance.
But the stock traded roughly 11.2% lower in pre-market hours, as of 8:05 a.m. ET, with investors worried about the company’s hefty spending plans.
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Total revenue of over $7.8 billion grew nearly 92% year over year and roughly 66% from the first quarter. The company generated an operating loss of $143 million, a significant improvement from the prior quarter and year-over-year. Segment-adjusted EBITDA also nearly tripled from a year ago.
CEO Elon Musk, on a conference call, told Wall Street analysts that the company expects to reach a $100 billion annual revenue run rate by December of this year and $1 trillion of annual revenue by 2030, a year ahead of the company’s previous guidance.
In fact, Musk said there’s a “non-zero chance of that being in 2029.”
Even at SpaceX’s $1.77 trillion market cap, this guidance, if achievable, makes the stock look quite appealing. Here’s why it’s getting crushed anyway.
Image source: The White House.
Capex soars
During the quarter, capital expenditures soared to nearly $18.4 billion, up from roughly $10 billion and $2.8 billion in the previous quarter and second quarter of 2025, respectively.
SpaceX’s CFO Bret Johnsen also told analysts that they can expect capex to be at similar levels in the next two quarters.
Johnsen said that capex for artificial intelligence compute is seeing less than a one-year payback. SpaceX has already announced massive deals with Anthropic and Google on this front, generating over $2 billion per month in revenue.
So, if the company can continue to scale its…
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