Space Exploration Technologies Corp. (NASDAQ:SPCX) saw its shares decline 1% on Tuesday, as investors weighed the impact of escalating artificial intelligence expenditures on the company's lofty $1.9 trillion market valuation. The stock closed at $142.23, down 1.02%, with 52.8 million shares traded during the session. In after-hours trading, the shares edged lower to $142.09 as of 18:50 EDT.
According to Yahoo Finance, the company's market capitalization stood at $1.875 trillion at the close. After accounting for newly issued shares related to the Cursor acquisition, the adjusted equity value reaches approximately $1.93 trillion. This valuation equates to roughly 62 times annualized second-quarter sales, before deducting net cash.
Quarterly Results Highlight AI Spending Gap
SpaceX reported second-quarter revenue of $7.814 billion, a 92% year-over-year increase. Adjusted EBITDA surged to $3.538 billion, nearly triple the prior-year figure. The net loss narrowed to $541 million from $1.008 billion, reflecting improved operational performance despite heavy investment.
Chief Financial Officer Bret Johnsen called 2026 "a momentous year," noting that the quarter demonstrated "the true power of SpaceX." However, the results also underscored a widening divide between profitable connectivity operations and substantial AI-related spending.
Segment Performance
- Connectivity: Revenue of $4.291 billion with operating income of $1.656 billion (38.6% margin). Starlink subscribers reached 12 million, doubling from the previous count, while average monthly revenue per user held steady at $66.
- Space: Revenue grew 29% to $962 million, but operating losses widened to $542 million as research spending climbed to $1.076 billion amid accelerated Starship development.
- AI: Revenue surged 247% to $2.561 billion, yet operating losses totaled $1.257 billion. Capital expenditures for the segment reached $15.828 billion in the quarter.
Acquisition Impact and Balance Sheet
SpaceX completed its $60 billion acquisition of Anysphere, the creator of Cursor, on August 14. The company issued 389.3 million common shares plus 1.75 million shares tied to vested units, according to a SEC filing. This issuance added approximately $55.6 billion to the quoted market value, bringing the adjusted equity value to roughly $1.93 trillion.
As of June 30, SpaceX held $100.0 billion in cash and marketable securities, with debt and finance leases near $39.4 billion. However, capital expenditures in the first half exceeded operating cash flow by about $25.0 billion, highlighting the cash-intensive nature of its AI and space initiatives.
Market Reaction and Valuation Concerns
The stock traded between $141.17 and $145.23 during Tuesday's session, with volume below its three-month average. The closing price was 5.4% above the $135 IPO price from June. Despite the premium, shares remain 37% below their post-listing peak of $225.64.
Investors are closely monitoring the pace of Starship development, Starlink subscriber growth, and the conversion of AI contracts into profitable revenue. Delays or slower-than-expected adoption could pressure the current multiple. Conversely, improved infrastructure utilization could enhance cash conversion and support the valuation.
As the company continues to balance ambitious growth with profitability, the market's reaction to its AI investments will likely remain a key driver for the stock's near-term performance.
