SpaceX stock faces volatility as investors prepare for first earnings report and major share unlock
SpaceX stock has experienced a volatile week, closing at a new low of $108.37 after a significant decline from its market debut. Investors are currently bracing for the company's first official earnings report on August 4, which will provide the first public data on second-quarter revenues for its AI business and the Starlink satellite communications service. Analysts are closely watching the company's massive capital expenditures in AI infrastructure, with concerns regarding whether these investments will generate sufficient returns to justify current valuations. While Starlink remains a primary earnings engine, the company's long-term growth is tied to the Starlink subscriber growth and the Starship rocket's capacity. Additionally, a lockup expiration on August 6 will free up 20% of eligible shares for sale, potentially increasing supply and putting further pressure on the stock. Meanwhile, CEO Elon Musk continues to pursue a potential merger with Tesla, though the merger faces scrutiny from China due to SpaceX's role as a major U.S. defense contractor.