SpaceX shares slide on the heels of first quarterly report
Summary
SpaceX’s shares fell by over 13% after the company released its first quarterly report as a public company. The drop happened mainly because SpaceX spent much more money than expected on building technology for artificial intelligence (AI).Key Facts
- SpaceX’s share price closed at $108.10, down 13.6% from $125.33 the day before.
- The company spent $18.37 billion this quarter, six times more than last year’s spending.
- Most of the spending ($15.8 billion) was on AI infrastructure like computers, storage, and software.
- SpaceX plans to increase its data center power from 1.4 gigawatts to 2 gigawatts by the end of the year.
- Investors worry if these big AI investments will bring good returns in the future.
- SpaceX earns money from cloud services with $14.1 billion in agreements lined up.
- Its Starlink satellite internet service doubled subscribers to 12 million, increasing revenue by 66% to $1.66 billion.
- Up to 911.5 million shares will become available for sale soon, which may cause more stock price changes.
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