After Its First Public Earnings Report, Here’s the 1 Glaring Reason Why I Wouldn’t Touch SpaceX’s Stock Right Now After a highly anticipated initial public offering (IPO) in June, Space Exploration Technologies (NASDAQ: SPCX) (SpaceX) held one of the more anticipated earnings…
ports on Aug. 4, its first as a public company. After the stock jumped over 18% from Aug. 3 until the earnings report, it plunged more than 13% following the call the next day
Although SpaceX beat revenue expectations, the company is still operating at a loss. That isn’t why investors panicked, though; it was the unexpectedly high capital expenditures (capex) SpaceX reported. But regardless of the overall sentiment around SpaceX’s spending plans, the one glaring reason why I’m avoiding the stock has nothing to do with its operations.
It’s about the value (or lack thereof). How SpaceX performed in its recent quarter SpaceX’s revenue jumped up 92% year over year to $7.81 billion, beating Wall Street expectations. Its most thriving segment is Connectivity, primarily its Starlink business.