SpaceX is set to report its first earnings as a public company on Tuesday, following a significant decline in its stock price since its historic IPO. The company, which went public in June with a valuation of $2 trillion, has seen its shares drop 24%, erasing nearly $500 billion in market capitalization. Analysts expect the company to report revenue of $6.93 billion, with a loss of 26 cents per share, according to brokerage firm XTB.
Lockup Expiration Impact
The earnings report comes just two days before a lockup expiration on August 6, when insiders will be allowed to sell nearly a billion shares, valued at approximately $106.4 billion based on recent closing prices. This increase in the public float could add volatility to the stock, with analysts noting that the staggered lockup schedule may lead to sustained fluctuations in the share price.
Revenue Breakdown
For the earnings report, analysts forecast revenue contributions from SpaceX's main business segments: $835 million from space operations, $3.38 billion from its connectivity arm Starlink, and $2.18 billion from its artificial intelligence platform xAI. Despite these projections, the company has yet to achieve profitability, reporting an operating loss of $4.3 billion last year, while only Starlink remains profitable.
Related coverage: SpaceX Shares Rebound After 20% Drop Below IPO Price, SpaceX Shares Drop 51% Amid Lockup Expiration Concerns.
The upcoming earnings report and the lockup expiration could lead to increased volatility in SpaceX shares, particularly affecting investor sentiment in the tech sector. The stock's performance will be closely watched as it could influence broader market trends in technology and space-related investments.
Watch for insights from CEO Elon Musk during the earnings call, as his comments may significantly shape market perceptions following the earnings announcement.
Based on reporting by: theguardian.com, businessinsider.com