SpaceX Stock (SPCX) Drops Despite Big Q2 Revenue Beat – Here's What Spooked Investors

SpaceX (SPCX) has released its first earnings report as a public company. Despite strong Q2 results, with revenue jumping 92% year‑over‑year, the stock dropped about 8% in after‑hours trading. Investors shifted their attention from upbeat top-line growth to the company's massive AI spending and deep losses. Also, a wave of insider shares about to hit the market pulled the shares lower.

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Massive CapEx and Ongoing Losses Overshadow SpaceX's Strong Quarter

SpaceX's biggest drag was its huge capital spending. Total quarterly CapEx surged more than 550% to $18.37 billion, driven mostly by a $15.83 billion push into AI infrastructure after merging with xAI. Management warned that spending will stay high through the rest of the year, which added to investor concern.

The company said its tentative target is to have 20GW of power and cooling capacity online by the end of next year, though it does not expect to fully reach that number. Instead, it aims to have a series of projects that together add up to 20GW, reflecting the scale of its AI buildout.

Further, losses remain heavy. Starlink stayed profitable with $1.66 billion in operating profit, but it was not enough to cover losses in other segments. The AI unit posted a $1.26 billion operating loss, while the Space segment lost $542 million due to faster Starship development.

Management added that Starlink enterprise revenue is expected to far exceed consumer revenue over time. They also noted that the internal forecast for reaching $1 trillion in revenue has moved up from 2031 to 2030, with a "non‑zero chance" of hitting that milestone in 2029.

Overall, SpaceX ended Q2 with a $541 million net loss. Further, combined with Q1, the company has burned about $22 billion in cash in the first half of 2026.

Massive Insider Share Unlock Sparks Fears of Panic Selling

The biggest near‑term pressure comes from the post‑IPO lockup expiration. Only about 5% of shares were available to trade after the June IPO, which helped push the stock to a $225 peak.

But on August 6, about 911 million insider shares became eligible for sale. Investors expect a flood of supply as early holders cash out, causing panic selling and short-selling pressure.

What Is SPCX's Stock Price Target?

Turning to Wall Street, SPCX stock has a Moderate Buy consensus rating based on 23 Buys, six Holds, and two Sells assigned since its IPO. The average price target for SpaceX is $233.18, implying an upside of 103.6% from the current price.