SpaceX to release first earnings report: What investors are looking for

Elon Musk's SpaceX (SPCX) is scheduled to release its first earnings report on Tuesday, August 4, since going public in June.

Yahoo Finance Senior Transports Reporter Pras Subramanian outlines the areas that investors will be paying the most attention to, especially since SpaceX stock has sunk far below its IPO price.

Video Transcript

00:00 Speaker A

Sticking with Musk, uh, Praz, SpaceX earnings on deck. Listen, we know, we we've talked about this. It's been a a painful stretch. What what are we expect to see in here or there?

00:09 Praz

Yeah, so the numbers are, you know, we're looking at revenue of around 6.87 billion. Nice bump up there sequentially. Adjusted EBITDA of around $2 billion, but an adjusted net loss of $2 billion, right? So, what's fueling that? It's a lot of the capback spending on AI initiatives. It's not so much just the rocket stuff, right? It's it's about a lot of the AI build out. And that's where some concern is. As far as seeing the stock price sort of get hammered here, you know, S&P Visible Alpha talking about how the concern with the stock is, quote, the weakness that has been partially driven by concerns about overgrowth around AI and data centers,

00:41 Praz

increasing concern in the market in the market that AI infrastructure investments will not be able to generate a return in line with the level of cash needed. Where have we heard that before? It's every hyperscaler's earning, right? Earnings. What about our buddy Leopold Ash and Bretter, right? That's what's going on right now.

00:54 Speaker A

That merger you you you hinted at there, Praz. So, you know, SpaceX, Tesla, does the street bet that actually happens, Praz?

01:03 Praz

Yeah, I think most of the analyst commentary, I would say just just sort of uh consensus that yes, they think it's happening. Musk has reportedly talked about this. Uh I think Gwen Shotwell, the president of SpaceX has said, it would make his job easier if everything was underneath one umbrella. So, I think yes, that's there's definitely a possibility, a probably more likely than not that this happens. The problem is, you know, it was structured as potentially SpaceX, you know, acquiring Tesla. But SpaceX's stock again, if you look at the chart, hitting another all-time low. Uh as that stock keeps sliding, how do you make this deal happen, right? So, I think that's the concern right now. Maybe maybe it happens later, you know?

01:40 Speaker A

All right, big earnings report on deck. Praz, thank you.

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