SpaceX shares fell another 12% on Wednesday, dropping below their $135 IPO price less than two months after the company's public debut. Despite reporting AI revenue that more than tripled year-over-year and announcing $6.7 billion in new cloud computing contracts, investors remain concerned about the company's heavy capital expenditure — $18.4 billion in the quarter — and negative free cash flow. Management argues AI infrastructure is beginning to generate returns fast enough to fund its own expansion, with a sub-one-year payback on new compute deployments, but analysts note the capex-to-revenue relationship remains unsustainable without either a spending reduction or dramatic revenue growth.
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