SpaceX stock drops more than 8% Wednesday as record spending overshadows earnings beat

SpaceX shares fell more than 8% in Wednesday morning trading after the company reported stronger than expected second quarter results, as concerns over its rapidly expanding artificial intelligence spending overshadowed growth across Starlink and its cloud computing business. The stock traded near $114.60 late Wednesday morning, down approximately 8.6% for the session after falling as low as $109.41. The decline pushed SpaceX further below the $135 price set during its June initial public offering. SpaceX reported $7.81 billion in second quarter revenue, an increase of 92% from the same period last year and above analyst estimates of roughly $6.8 billion. The company posted a net loss of $541 million, considerably narrower than the approximately $1.9 billion loss expected by analysts. The stronger results marked SpaceX’s first quarterly report since becoming a publicly traded company. Shares initially fell about 7.5% in extended trading Tuesday before the selloff continued after markets opened Wednesday. Investor attention centered on SpaceX’s capital expenditures, which reached $18.4 billion during the quarter. Of that amount, approximately $15.8 billion was directed toward artifi...