SpaceX stock has delivered a 12% return for early investors since its June 12 initial public offering. Shares priced at $135 during the IPO are now trading at $151, meaning a $1,000 investment at the offering price would be worth approximately $1,120.
The company's IPO was the largest in U.S. history, raising roughly $75 billion and valuing SpaceX at approximately $1.77 trillion at the offer price. Shares initially surged to briefly exceed $225 in early trading before retreating amid market volatility.
Strong Revenue Growth Amid Spending Concerns
SpaceX reported second-quarter revenue growth of 92% year over year, reaching $7.8 billion, driven by its Connectivity (Starlink), AI Compute, and Space segments. Management has disclosed large AI hosting deals, including a newly announced agreement valued at approximately $1.11 billion per month beginning in December.
The company has set a goal of reaching $100 billion in annual recurring revenue by the end of 2026. Additionally, Starship's 14th test flight is expected to carry next-generation Starlink V3 satellites and mark the rocket's first revenue-generating mission.
Capital Expenditure Questions
Investor sentiment has been tempered by concerns over SpaceX's spending trajectory. S&P Global estimates capital expenditures could rise to nearly $200 billion in 2027 as the company invests in AI data centers, chip manufacturing, Starship infrastructure, and new launch facilities.
Supporters view this spending as foundational for future growth, while skeptics argue it presents execution and cash-flow risks. The stock's recent pullback reflects this ongoing debate among investors regarding the company's valuation and spending priorities.
