STARBASE, TEXAS / RankWire.AI / – SpaceX experienced a 13.6% decline in its shares on August 5, closing at $108.27. The decline followed the release of the company’s first quarterly report since its initial public offering in June. Investors balanced the company’s strong revenue growth with $18.37 billion spent on capital during the quarter. Investment in artificial intelligence infrastructure reached $15.83 billion, up from $749 million a year earlier.
During trading, the stock dipped as low as $107.18 and finished nearly 20% below its $135 IPO price. Through the offering, SpaceX sold 638.9 million Class A shares, including the full underwriters’ option. This transaction brought in net proceeds of approximately $85.68 billion. Trading on Nasdaq started on June 12, and the shares peaked at $201.80 later on.
The company announced a second-quarter revenue of $7.81 billion, up 92% from $4.07 billion a year earlier. Its net loss was reduced to $541 million from about $1.01 billion. Operating loss also decreased, falling to $143 million from $970 million in the same period. Adjusted earnings before interest, taxes, depreciation, and amortization reached $3.54 billion.
Expenses for AI surge
The AI division generated $2.56 billion in revenue for the quarter, a 247.5% increase from $737 million. The growth was driven mainly by new AI services and infrastructure, which accounted for $1.88 billion of the rise. Advertising revenue declined by $59 million during this period. Despite the revenue growth, the division posted a $1.26 billion operating loss as research and development costs jumped 94.1% to $2.18 billion.
Starlink and other connectivity services remain SpaceX’s top revenue sources. Connectivity sales increased by 65.8% to $4.29 billion, and operating income rose by 79.4% to $1.66 billion. Subscriber growth among consumers was 101.2%, but average revenue per user dropped 22.4%. Revenue from government, aviation, maritime, and enterprise operations added another $939 million in growth.
Major share release begins after IPO
Starting August 6, up to 911.5 million employee and early investor shares become eligible for sale. This amount represents about 6.9% of SpaceX’s 13.18 billion outstanding Class A and Class B shares. It exceeds the shares sold in the IPO by roughly 272.6 million. The company detailed the release schedule in its prospectus filed with the Securities and Exchange Commission.
At the August 5 close, the initial unlocked block had a notional value near $98.7 billion. As of July 28, SpaceX reported holding 7.70 billion Class A shares and 5.49 billion Class B shares. By the end of June, the company had $93.52 billion in cash and $6.49 billion in marketable securities. The session on August 6 is the first day eligible holders can sell shares from the initial restricted group.