SpaceX stock rallies on strong Q2 earnings and AI investment
SpaceX shares experienced a significant rally, climbing over 15% in a single session to approximately $133, following the company's first quarterly earnings report as a public entity. The stock's performance was bolstered by a blowout second-quarter revenue report of $7.8 billion, a 92% increase year-over-year, and an analyst upgrade from Argus Research to 'Buy' with a $160 price target.
Investors are closely monitoring SpaceX's massive pivot toward artificial intelligence. The company reported $18.4 billion in capital expenditures for the quarter, with $15.8 billion dedicated to AI infrastructure. While this spending caused some market concern, the company's AI segment grew rapidly, generating $2.6 billion in revenue. Additionally, the Starlink connectivity business remains a major driver, reporting $4.3 billion in revenue and reaching 12 million subscribers.
The recent rally also occurred despite the expiration of a major lockup period, which released approximately 911.5 million shares to insiders and employees. Rather than triggering a mass sell-off, the market's reaction suggested that the potential impact of increased supply had been largely priced in. Analysts remain divided on long-term valuation, with Morgan Stanley setting a high target of $300 based on the company's unique combination of launch services, satellite networks, and AI computing power.
Entities: Argus · Argus Research · Elon Musk · JPMorgan Chase & Co. · Morgan Stanley · Nasdaq · SpaceX · Starlink
Claims
What the coverage asserts, and how well corroborated each claim is across sources.
- [○ 1 SOURCE] The company's AI segment generated $2.6 billion in revenue. (SpaceX)
- [● 8 SOURCES] SpaceX reported Q2 2026 revenue of $7.8 billion, a 92% increase year-over-year. (SpaceX)
- [● 3 SOURCES] The Starlink connectivity segment reached approximately 12 million subscribers. (SpaceX)
- [● 3 SOURCES] Argus upgraded SpaceX from Hold to Buy with a $160 price target. (Argus Research)
- [● 8 SOURCES] The company's quarterly net loss narrowed to $541 million. (SpaceX)
- [● 3 SOURCES] Capital expenditures reached $18.4 billion in Q2, with $15.8 billion directed toward AI infrastructure. (SpaceX)
- [● 4 SOURCES] Approximately 911.5 million shares held by insiders and employees became eligible for trading following the lockup expiration. (SpaceX)
- [● 3 SOURCES] Morgan Stanley analyst Adam Jonas issued an Overweight rating with a $300 price target. (Morgan Stanley)