SpaceX Shares Slide 11% as AI Spending Surge Drowns Out Revenue Beat

The company reported a 92% revenue increase compared to last year, driven largely by the Starlink satellite network and a 250% jump in AI-related revenue. Despite this growth, total capital expenditure soared to over $18 billion, with the bulk directed toward AI development. Finance chief Bret Johnsen signaled that spending will likely remain at these elevated levels for several quarters, fueling investor concerns about the sustainability of current funding models for space projects.

Piper Sandler responded to the earnings report by slashing its price target for SpaceX from $156 to $140, maintaining a Neutral rating. Analysts pointed to a looming 140% increase in tradable shares as a primary driver of potential supply pressure. While some institutions, including Bank of America and JPMorgan, retained bullish ratings, the technical outlook for the stock remains weak after it slipped below the $119.34 Fibonacci level. With a major share unlock scheduled, market participants are bracing for continued volatility as the company balances its massive AI ambitions against immediate valuation headwinds.