SpaceX sees revenue almost double in 2Q

SpaceX’s 2Q earnings (pdf) have rocketed past analysts’ expectations, as revenues rose 92% y-o-y, reaching USD 7.8 bn, clearing the expected threshold of USD 6.8 bn. The firm’s net loss narrowed to approximately USD 541 mn, recovering from USD 1 bn in the previous quarter and comfortably beating expectations of a USD 2.1 bn loss.

SpaceX’s largest business segment, Starlink connectivity, generated USD 4.3 bn in revenues, a 66% y-o-y jump, and is the firm’s only segment whose operating income is in the green. Subscribers to the service doubled to 12 mn in 2Q.

On the AI front: Although SpaceX’s AI segment is still developing, its revenues more than tripled from a year earlier to reach roughly USD 2.6 bn — on the back of agreements to lease data center capacity to the likes of Anthropic and Google. It acquired Elon Musk’s AI startup xAI in February, and has spent USD 15.8 bn in capital expenditure to build up its AI segment in 2Q — around 86% of total capex spent.

As for the final frontier… The firm’s space segment brought in USD 962 mn in topline, a 29% y-o-y increase, and reported a loss of USD 542 mn. Capex spending for the segment amounted to around USD 1.2 bn.

A stock market reckoning: Since its blockbuster USD 1.75 tn IPO in June, SpaceX’s stock has slipped 8% and could face further downward pressure starting tomorrow, when its post-IPO lockup period expires. This could potentially flood the market with insider and early-investor stock.

What’s next? SpaceX CEO Elon Musk claimed that progress is being made on his company’s first generation of orbital data centers, confirming on an earnings call yesterday that they are set for launch next year. Meanwhile, SpaceX continues to train its latest series of Grok AI models on SpaceX data, which Musk says will give his firm’s tools the upper hand in engineering, alongside the development of multiple GWs of fresh computing capacity.

MARKETS THIS MORNING-

Asian equities rose this morning on growing optimism over an expected US-Iran agreement following comments from Treasury Secretary Scott Bessent. South Korea’s Kospi is up 3.8%, while Japan’s Nikkei gained around 3.2%.

THE CLOSING BELL-

The DFM rose 1.8% yesterday on turnover of AED 1.0 bn. The index is down 1.0% YTD.

In the green: Emaar Properties (+6.5%), Air Arabia (+4.7%), and Islamic Arab Ins. Company (+4.5%).

In the red: Emirates Investment Bank (-4.9%), Dubai National Ins. & Reinsurance (-4.9%), and Dubai Refreshment Company (-4.8%).

Over on the ADX, the index rose 1.6% on turnover of AED 1.6 bn. Meanwhile, Nasdaq Dubai was up 3.5%.