STARBASE, TEXAS / RankWire.AI / – SpaceX shares declined sharply by 13.6% on August 5, closing at $108.27. This decline came after the company released its first quarterly report since going public in June. Investors evaluated the impressive revenue growth against a significant capital expenditure of $18.37 billion during the quarter. Notably, expenditures on artificial intelligence infrastructure reached $15.83 billion, a substantial increase from $749 million a year earlier.
Throughout the trading session, the stock dipped as low as $107.18 and ultimately finished nearly 20% below its $135 initial public offering price. The offering saw SpaceX sell 638.9 million Class A shares, including the full underwriters’ option, raising approximately $85.68 billion in net proceeds. Shares commenced trading on Nasdaq on June 12 and later peaked at $201.80.
For the second quarter, SpaceX reported revenues of $7.81 billion, marking a 92% increase from $4.07 billion in the same period last year. The company’s net loss was reduced to $541 million from around $1.01 billion. Operating loss also decreased significantly from $970 million to $143 million during the quarter. Adjusted earnings before interest, taxes, depreciation, and amortization reached $3.54 billion.
Rising costs in artificial intelligence development
The AI division generated $2.56 billion in revenue for the quarter, representing a jump of 247.5% from $737 million. The increase was primarily driven by new AI services and infrastructure, which contributed $1.88 billion to this growth. Meanwhile, advertising revenue declined by $59 million in the same period. The division posted a $1.26 billion operating loss, largely due to a 94.1% rise in research and development expenses to $2.18 billion.
Starlink and other connectivity services continued to be SpaceX’s dominant revenue streams. Sales in connectivity services increased by 65.8% to $4.29 billion, with operating income rising 79.4% to $1.66 billion. Customer subscriber growth stood at 101.2%, although the average revenue per user decreased by 22.4%. Additional revenue growth was supported by gains in government, aviation, maritime, and enterprise operations, which added another $939 million.
Major share release initiated post-IPO
Starting August 6, up to 911.5 million shares held by employees and early investors become eligible for sale. This volume represents roughly 6.9% of SpaceX’s total outstanding shares, which include 13.18 billion Class A and Class B shares. The total available for sale exceeds the 272.6 million shares sold during the IPO. The company detailed its planned release schedule in the prospectus submitted to the Securities and Exchange Commission.
Based on the August 5 closing price, the initial unlocked block of shares has a notional value close to $98.7 billion. As of July 28, SpaceX reported 7.70 billion Class A shares and 5.49 billion Class B shares outstanding. At the end of June, the company held $93.52 billion in cash and $6.49 billion in marketable securities. The session on August 6 will be the first opportunity for eligible shareholders to sell shares from the initial restricted group.