We're recapping last Friday's (August 7) mini market analysis.

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34 segments

0:00

Tuesday night, the much-awaited SpaceX

0:02

reported for the first time. On Tuesday,

0:05

[music]

0:05

prior to the report, the stock rallied

0:08

9% to 125, which is still below the IPO

0:12

price of 130. Now, I would call the

0:14

results very mixed at best. On the

0:17

positive side, the company reported

0:19

revenue of 7.8 billion, which was up 92%

0:23

and a beat. Earnings per share was a

0:25

loss of 9 cents, which was better than

0:27

the 24-cent loss that was expected. But,

0:30

big but,

0:31

>> [music]

0:31

>> CapEx jumped to 18.4 billion for the

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quarter versus 10.1 [music]

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billion in the March quarter, driven by

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higher than expected spending in the, of

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course, AI unit. And Musk called for

0:44

CapEx to climb even higher. Another

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negative data point occurred in SpaceX's

0:48

Starlink satellite internet service, the

0:51

only profitable business. Subscribers

0:53

reached 12 million, which was lower than

0:56

the 12.19 million expected. The stock

0:59

was down double digits after [music]

1:01

hours. One more thing, if we take the

1:04

second quarter's revenue of 7.8 billion

1:07

and annualize it, we get 31.2 billion.

1:10

SpaceX's market cap is 1.6 trillion. So,

1:13

the market cap to revenue is 54 times, a

1:16

tad expensive. In the end, the issue

1:19

with SpaceX is what exactly is this

1:22

business model?

Interactive Summary

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This transcript analyzes SpaceX's recent quarterly financial report, highlighting a mix of strong revenue growth and earnings performance alongside significant concerns regarding soaring capital expenditures and a slight miss in Starlink subscriber numbers, ultimately questioning the company's valuation and business model.