Key Takeaways:
- Q2 revenue rose 92% to $7.8 billion, accelerating from 15% growth in Q1
- Starlink posted $4.2 billion revenue with $1.67 billion in operating earnings
- Shares trade near $141, down 30% from the post-IPO high of $202
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SpaceX revenue jumps 92% to $7.8B as Starlink drives growth
SpaceX reported second-quarter revenue of $7.8 billion, up 92% year over year, in its first earnings release since the record June IPO that valued the company at $1.77 trillion.
"Starlink is the financial engine of the company," Morgan Stanley analyst Adam Jonas said, reiterating an Overweight rating with a $300 price target.
Starlink revenue rose 66% to $4.2 billion with $1.67 billion in operating earnings, a 39% margin. AI segment sales more than tripled to $2.56 billion, though the unit posted a $1.2 billion operating loss on $15.8 billion in capital spending. Free cash flow was negative $25 billion in the first half.
Shares closed at $141.50, down 30% from the $202 post-IPO peak and near the $135 offering price. Wall Street's median 12-month target is $217, implying 55% upside, according to The Wall Street Journal.
SpaceX trades at 90 times sales, above Palantir Technologies' 73 times, the richest multiple in the S&P 500. The company holds about $100 billion in cash and equivalents, enough to cover roughly two years of current burn, though AI capital spending could accelerate.
Lock-up expirations loom. The float will expand from 1.8 billion shares to 5.2 billion by early December, with more than 700 million shares unlocking in September and October, raising the risk of insider selling. Elon Musk owns 48.4% of the company, a new filing shows.
Musk said on X that SpaceX could generate $3.5 trillion in annual revenue by 2033, his "best guess," well ahead of Morgan Stanley's model, which reaches that level around 2040. The company is planning a $100 billion Starbase expansion in Vermilion Parish, Louisiana, with construction starting in 2027 and operations targeted for 2029.
The earnings baseline gives investors their first hard numbers on a business that trades at 42 times forward sales, with the Street projecting $9.28 earnings per share and $378 billion revenue by 2030. The next test is how the market absorbs the September and October share unlocks, which will determine whether the stock holds above its IPO price.
This article is for informational purposes only and does not constitute investment advice.
[1] Is SpaceX Stock a Buy After Its First Earnings Report?[2] SpaceX Stock Is Down 30% From Its Post-IPO High. History Says This Will Happen Next. - Yahoo Finance[3] SpaceX Is Trading Near Its $135 Offering Price. Wall Street Analysts Say This Is What Happens Next. - The Motley Fool[4] SpaceX shares close at $141.50 after Musk forecast[5] SpaceX: The Valuation And The Unlock Calendar Keep Me On The Sidelines
