SpaceX dives 10% after AI spending surge rattles investors - CNBC
SpaceX shares fell over 13% following an earnings report that revealed a massive $18.4 billion capital expenditure surge, primarily driven by AI investments. Despite the market reaction, the company's CFO defended the spending as efficient with a projected one-year payback period.
Why it matters
The stock drop reflects growing investor skepticism regarding the immediate profitability of massive AI infrastructure spending by major tech firms.
SpaceX shares sank 13.6% on Wednesday after a surge in artificial intelligence spending rattled investors and clouded an otherwise expectation-beating quarter.
In SpaceX's first earnings report as a public company on Tuesday, Elon Musk 's space firm said its capital expenditures jumped sixfold to $18.4 billion in the second quarter. This figure was ahead of analyst expectations, with the majority of the spending going toward AI.
The company's stock closed at just over $125 on Tuesday, sitting below its $135 initial public offering price. It is well off its more than $200 all-time high that was hit shortly after it began trading on June 12.
SpaceX shares over the past five days. Investors have been on edge this earnings season as concerns rise about whether large tech companies can prove their multibillion-dollar investments are yielding returns.
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