Stocks of SpaceX plunged following a report of record investments in AI

SpaceX stock sharply fell in price following the release of the company's first quarterly report since going public. In premarket trading on August 5, quotations dropped by 10.6% to $111.99.

Immediately after the report was published, shares lost about 7% in after-hours trading. The decline accelerated subsequently, even though quarterly revenue and adjusted operating profit exceeded analyst expectations.

The main reason for the negative reaction was SpaceX's capital expenditures. In the second quarter, they reached $18.4 billion, of which $15.8 billion the company directed toward projects related to artificial intelligence. Analysts had expected spending in this area to be approximately $13.1 billion.

The investor further concern concerns how long it will take for SpaceX's large investments in AI infrastructure to begin generating steady profit. Meanwhile, Cantor analyst Colin Kenfield maintained a buy recommendation and a target price of $246 for the company's shares.

Earlier, Kurs.com.ua reported that SpaceX grew quarterly revenue increased% to $7.8 billion, but the company remained unprofitable. The net loss totaled $541 million.

According to materials from: Barron's, Business Insider, BBC