Key facts
- SpaceX is preparing to issue its first quarterly earnings report as a public company.
- The options market is pricing in a potential $225 billion swing in SpaceX's valuation.
- Investors are anticipating a roughly 15% move in SpaceX shares, with a bearish sentiment.
- SpaceX shares have declined 43% from their peak since going public.
- A significant number of shares, over 900 million, will become available for trading after a lockup expiration on August 6.
- The company is expected to report a net loss for the second quarter.
SpaceX is poised to release its first quarterly earnings report as a public company, with investors and analysts closely watching for insights into its performance and future prospects. The options market is anticipating significant volatility, pricing in a potential $225 billion swing in the company's valuation and a roughly 15% move in its shares, leaning towards a bearish outlook.
Shares have fallen 43% from their June peak of $225, closing Monday at $114.46, down from the IPO price of $135. This decline, coupled with a drop in Tesla's stock, has impacted Elon Musk's wealth. Investors are expected to question Musk on various fronts, including the progress of the Starship rocket program, plans for its satellite network, and the potential for orbital data centers.
Further adding to potential market movement is the expiration of a lockup provision later in the week, which could allow over 900 million shares to be sold, more than doubling the currently available float. The company is also expected to report a net loss for the second quarter, with analysts projecting a loss of $1.9 billion, or 23 cents a share.
SpaceX's Starlink satellite communication business is a significant cash generator, but the company also operates a money-losing AI business and the social media platform X.