SpaceX (NASDAQ:SPCX) shares fell more than 11% overnight as of 11am BST on 5 August, following the company's first earnings announcement as a public entity. This decline occurred despite a 92% year-on-year increase in revenue to $7.8 billion, surpassing the LSEG consensus forecast of $6.9 billion.
Ahead of the earnings release on 4 August, shares had already dropped to $125.33, which was 7% below the initial public offering (IPO) price of $135 and 44% below their peak of $225.64 reached on 16 June. Investors reportedly focused on rising costs across all segments, including a $1.6 billion increase in artificial intelligence spending, rather than the revenue beat.
The company's losses narrowed to $541 million from $1 billion, and Elon Musk advanced the target date for achieving $1 trillion in annual revenue from 2031 to 2030. Chris Beauchamp, chief market analyst at IG, commented that a SpaceX rocket crashing into the moon on 5 August was "probably a good metaphor for the share price performance so far."
Further volatility for SpaceX's share price could arise later this week with the expiry of the first of several lock-up periods for longstanding shareholders. Market research firm Morningstar predicts this could lead to increased selling, as SpaceX sold only 5% of its shares at IPO, compared to a more typical 20%.