SpaceX Beats Earnings Estimates Yet Bear Case Persists

SpaceX recently delivered its first earnings report since going public, blowing past Wall Street estimates with revenue hitting $7.8 billion against a consensus of $6.81 billion. Adjusted EBITDA also impressed at $3.5 billion, easily beating the projected $2.0 billion. Starlink performed well too, pushing past 12 million subscribers and bringing in $2.60 billion in adjusted EBITDA.

Despite the strong financial start, the stock dipped in after hours trading as investors focused on massive AI spending. Capital expenditures reached $18.37 billion, with AI spending alone jumping to $15.8 billion for the quarter. Analysts noted that upcoming lockup expirations releasing millions of insider shares are also creating short term selling pressure.

CEO Elon Musk defended the heavy spending during the earnings call, pointing to long term growth for Starlink and upcoming Starship milestones. Goldman Sachs remains heavily bullish, forecasting explosive annualized revenue growth over the next five years. Traders should watch the share lockup expiration and ongoing capital expenditure reports for the next major market move.