SpaceX shares rebounded ahead of the company’s first quarterly report since its June IPO, as investors looked beyond an expected $1.9 billion loss toward its AI infrastructure plans and Starlink growth.
Summary
- SpaceX is expected to report $6.8 billion in quarterly revenue and a $1.9 billion loss.
- Bernstein maintained its Outperform rating and $239 price target before the results.
- SPCX remains more than 50% below its $225.64 high despite its latest rebound.
- Investors are watching Starship reuse, Starlink growth, and AI computing demand for signs of long-term value.
SpaceX earnings put AI strategy in focus
SpaceX is scheduled to publish its second-quarter results after the U.S. market closes on Tuesday, marking its first earnings report as a public company.
Analysts expect the company to post revenue of about $6.8 billion and a net loss near $1.9 billion. Starlink growth is expected to offset some of the losses from SpaceX’s launch and artificial intelligence operations, according to estimates cited by CBS News.
The headline financial figures may receive less attention than management’s outlook for AI infrastructure. SpaceX has been developing plans to deploy space-based data centers, which would use satellite networks to provide computing capacity.
The company’s AI strategy also includes terrestrial infrastructure agreements. Anthropic agreed to pay SpaceX $1.25 billion per month through May 2029 for computing capacity, although the arrangement was expected to generate lower payments during its initial ramp-up period, Axios reported.
Investors will want details about when these contracts will contribute materially to revenue and whether they can offset the high spending required to expand computing capacity.
Bernstein keeps $239 target despite SpaceX stock slide
Bernstein SocGen Group maintained an Outperform rating and a $239 price target on SpaceX ahead of the report. That target implies substantial upside from the stock’s recent trading range.
The firm identified rapid Starship reuse as the most important factor supporting SpaceX’s long-term valuation. A reusable Starship system could lower the cost of deploying the satellites needed for orbital data centers and expand the company’s launch capacity.
Bernstein also identified semiconductor supply, regulatory approvals, and continued demand for computing power as major risks. These issues could determine how quickly SpaceX can develop its planned satellite-based AI network.
Competition from China, Starlink’s international broadband expansion, and the company’s direct-to-device mobile business remain other considerations. However, Bernstein said those areas are secondary to SpaceX’s ability to execute its AI infrastructure strategy.
The company’s first public earnings call could provide investors with clearer timelines for Starship development, satellite deployments, and capital spending.
SPCX stock targets $124 after its rebound
As reported by crypto.news, SPCX stock traded around $119.71 after gaining 4.6%, extending its recovery from a recent low near $105. The rebound came after the shares lost more than half their value from a 52-week high of $225.64.
Holding above $119.34 could allow the stock to challenge $124.15. A move through that level would place $130.67 in focus, followed by higher resistance at $138.63 and $146.58.
Failure to remain above $119.34 could expose the stock to another decline toward $114 and $110. The main downside level remains near $104.91, close to the floor established during the latest sell-off.
Despite the rebound, the broader trend remains weak. SPCX has fallen from above $172 in early July and remains below its June IPO price of $135.
Starlink and Starship could decide what comes next
Starlink remains SpaceX’s strongest operating business and the only segment consistently producing profits. Its broadband subscriber growth will be important because that cash flow helps fund Starship development and the company’s capital-intensive AI expansion.
Wall Street will also examine management’s spending plans. Building computing infrastructure, manufacturing satellites, and testing Starship require substantial capital before they can generate sustainable returns.
For U.S. investors, the report will provide the first detailed test of whether SpaceX’s public valuation can be supported by its operating results. Strong Starlink growth and clearer AI revenue guidance could support the recovery, while higher spending or delays to Starship reuse could renew pressure on SPCX shares.
