Space Exploration Technologies Corp. (SPCX.US) shares plunged during pre-market trading on Wednesday (5th) after a spike in the company's AI spending raised investor concerns, overshadowing better-than-expected quarterly results. The stock last tumbled 10.4% in pre-market trading.

On Tuesday (4th), SpaceX released its first earnings report as a listed company. The space enterprise owned by CEO Elon Musk said capital expenditure in 2Q26 mushroomed sixfold to USD18.4 billion, exceeding analyst expectations, with most of the spending directed toward AI.

The company's shares closed slightly above USD125 on Tuesday, still below its IPO price of USD135 and markedly lower than the record high of more than USD200 reached shortly after listing.

During the current earnings season, market concerns have intensified over whether major technology companies can demonstrate returns from multi-billion-USD investments, weighing on investor sentiment.

Although the market believes SpaceX's proprietary models lag behind OpenAI and Anthropic, the company is positioning itself as an alternative cloud service provider by leasing computing capacity built with NVIDIA Corporation (NVDA.US) chips.

In addition, the company will face another potentially market-moving event on Thursday (6th), when the insider share lock-up period expires, allowing insiders to sell part of their holdings.
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AASTOCKS Financial News
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