NEW YORK — Shares of Space Exploration Technologies Corp. plunged 13.61% on Wednesday, closing at $108.27 after the company’s first quarterly results as a public firm revealed explosive revenue growth that was overshadowed by heavy capital spending on artificial intelligence infrastructure and an impending release of insider shares.

The stock fell $17.06 from its previous close of $125.33, wiping out recent gains and extending a sharp decline from the June IPO peak near $225. After-hours trading saw a modest rebound to about $110. Volume surged well above average as investors weighed the debut earnings report against the scale of ongoing investment and a partial lockup expiration scheduled for Thursday that could free roughly 911 million employee and early-investor shares.

SpaceX reported second-quarter revenue of $7.81 billion, up 92% from $4.07 billion a year earlier and well above Wall Street estimates that clustered near $6.8 billion to $6.9 billion. The net loss narrowed to $541 million from $1.01 billion in the year-ago period. Adjusted EBITDA rose 191% to $3.54 billion. The company ended the quarter with approximately $100 billion in cash, cash equivalents and marketable securities and a backlog of $47.5 billion.

Revenue growth was broad-based. The Connectivity segment, anchored by Starlink, generated $4.29 billion, up 66% year over year, and produced $1.66 billion in operating income. Starlink subscribers doubled to 12 million. The AI segment delivered $2.56 billion in revenue, up 247%, though it recorded a $1.26 billion operating loss. The Space segment contributed $962 million in revenue with a $542 million operating loss, reflecting continued investment in Starship development.

Capital expenditures reached $18.4 billion in the quarter, of which $15.8 billion was directed at AI infrastructure. That level of spending, roughly 235% of quarterly revenue, drew the sharpest focus from investors. Management indicated capital spending would remain elevated at similar levels for at least the next two quarters as the company expands compute capacity, Starship production and next-generation Starlink satellites.

“2026 has been a momentous year so far, and the second quarter demonstrated the true power of SpaceX,” Chief Financial Officer Bret Johnsen said in the earnings release. “Revenue growth accelerated across all our business segments and we delivered strong operating leverage, with significant margin expansion led by our new AI compute agreements. Our unparalleled leadership in launch, Starlink subscriber growth, new enterprise and government partnerships, and best-in-class AI infrastructure underscore our ability to drive meaningful scale and deliver attractive returns.”

On the earnings call, Johnsen said the company had already signed an additional $6.7 billion in cloud services contracts in the early weeks of the third quarter and remained on track to reach a $100 billion annualized revenue run rate by the end of 2026, including expected contribution from the pending $60 billion acquisition of Cursor. He noted that new compute capital deployments were showing a payback period of less than one year.

Chief Executive Elon Musk described an accelerated timeline for long-term growth. Internal projections for reaching $1 trillion in annual revenue had moved forward to 2030 from 2031, with a non-zero chance of achieving the milestone as early as 2029. Musk said SpaceX expects to end 2026 with more than two gigawatts of compute capacity and closer to 10 gigawatts by the end of 2027, relying exclusively on Nvidia hardware for its data centers.

“We’re building AI compute capacity at scale faster than anyone else,” Musk said. On Starship, he stated: “With Starship, our aspirations, and I think we will achieve these aspirations, are to deliver well over 1 million tons to orbit per year, and probably ultimately 10 million tons per year.” He added that the $100 billion annualized revenue run rate target by December “is not a question mark. That’s what we would achieve if we basically did nothing.”

The company also highlighted two successful Starship Version 3 flight tests in the past 90 days, progress toward rapid reusability, the release of Grok 4.5, and more than $6 billion in multi-year U.S. government contracts for Starshield. Cloud services agreements signed in the period totaled $14.1 billion in contracted sales.

Despite the operational strength, investors focused on the capital intensity required to sustain the AI expansion and the near-term supply of shares from the lockup release. The partial unlock on August 6 involves shares held by employees and early investors and is separate from the main 180-day lockup that runs through December and a longer restriction on Musk’s holdings. Analysts and traders had flagged the event as a potential source of volatility in the weeks leading up to the earnings report.

Starlink average revenue per user declined year over year to $66, reflecting expansion into lower-priced international markets even as subscriber growth remained robust. The Space segment showed sequential improvement in revenue but continued to post operating losses tied largely to Starship research and development.

SpaceX completed its initial public offering in June at $135 per share, raising approximately $85.7 billion in net proceeds in what was described as the largest IPO in market history. The company also issued $25 billion in investment-grade senior notes later that month. The stock initially surged above $225 before giving back most of those gains amid concerns over valuation, capital intensity and the approaching unlock of restricted shares.

Wednesday’s decline left the shares below the IPO price and roughly halved from the post-IPO high. Short interest has remained elevated, and options activity showed a pronounced skew toward puts around the $100 and $110 strikes.

Management reiterated that the combination of Starlink cash generation, contracted AI compute demand and a strengthened balance sheet positions the company to fund its multi-year ambitions in launch, connectivity and artificial intelligence while maintaining long-term capital discipline. Investors will now watch the pace of share sales following the lockup release, the trajectory of free cash flow as capital spending continues at elevated levels, and evidence that the AI infrastructure investments are converting into the rapid payback periods management has described.

The first public earnings report delivered clear evidence of rapid top-line growth and expanding adjusted profitability in core areas, yet the market’s reaction underscored the high bar set by the company’s valuation and the scale of investment still required to realize the long-term targets Musk outlined.

Companies bidding for government contracts worth £5m or more will be scored on the jobs and training they create rather than on net zero, equality and diversity measures, under changes to the £90bn public procurement system announced by the Cabinet Office on Wednesday.

The weighting given to the wider benefits a bidder brings, known as social value, will double from 10 per cent to 20 per cent of the assessment for contracts at that level. The new 20 per cent score will be based on job creation, replacing the previous set of measures, which covered areas including equality and diversity, net zero and the post-Covid recovery.

Bidders will be given extra credit for creating local jobs that pay above the minimum wage, for training that plugs local skills gaps and, in particular, for offering 45-day work experience placements for young people.

The rules will apply to both British and international firms bidding for central government contracts and take effect from 1 January 2027, with detailed technical guidance due in the autumn, the Cabinet Office said.

The changes come as the government seeks to tackle youth unemployment, with the prime minister, Andy Burnham, saying he wants to create “growth in every postcode”. Burnham used a similar initiative during his time as mayor of Greater Manchester.

Figures from the Office for National Statistics show more than a million people aged 16 to 24 were not in education, employment or training in the first three months of 2026. The government has already appointed the former Marks & Spencer chief executive Marc Bolland to rally employers behind 300,000 work experience and training placements for young people.

First Secretary of State Louise Haigh, who is effectively Burnham’s deputy prime minister, said the procurement process in its current form was a “tick-box exercise”.

“Every pound of taxpayer money should be spent in a way that benefits local communities, creating good jobs and giving young people the skills they need for the future,” she said.

“These new rules will ensure the £90 billion that is spent each year through government contracts supports British jobs, skills and people in every postcode.”

Cabinet Office Minister Mark Ferguson said businesses that secure government contracts “have a responsibility to give back”.

“Businesses that benefit from the billions of taxpayer pounds spent by government, will have to create more local jobs and opportunities for young people in their area,” he said.

The Cabinet Office said the threshold for the requirements has been raised to contracts worth more than £1m, so that they do not typically apply to the work smaller firms and local social enterprises bid for. The change follows guidance issued last year urging public sector buyers to award more contracts to small businesses.

Craig Beaumont, executive director at the Federation of Small Businesses, said: “Lifting the threshold to £1 million ought to see many more small firms winning contracts, as small businesses deliver huge intrinsic social value but they can often struggle to demonstrate this in procurement processes.”

For major contracts, government departments will set a key performance indicator and publish annual progress reports measuring suppliers’ performance against their commitments, the Cabinet Office said.

Green groups criticised the plans. Ami McCarthy, head of politics at Greenpeace UK, said protecting the environment and helping young people into work are “mutually beneficial and one shouldn’t come at a cost to the other”.

“Companies should be held to account with environmental targets to help achieve a better future without leaving young workers behind,” they added.

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NEW YORK — Millions of players around the world turned to the New York Times Wordle on Thursday seeking the five-letter solution that has become a daily ritual for language enthusiasts and casual gamers alike. Puzzle number 1874, dated August 6, 2026, presented a straightforward yet tricky challenge that centered on a common verb associated with everyday dissatisfaction.

The answer is GRIPE. The word, which means to complain persistently or to express a minor grievance, fits the classic Wordle format of exactly five letters with no repeating characters. It contains two vowels — I and E — and begins with the consonant G while ending with the vowel E.

Wordle, created by software engineer Josh Wardle and later acquired by the New York Times, continues to draw a large global audience years after its initial surge in popularity. Players have six attempts to guess the hidden word, receiving color-coded feedback after each try: green for correct letters in the right position, yellow for correct letters in the wrong position, and gray for letters not present in the solution.

For those who prefer gradual assistance, several layers of hints were available before the full reveal. The word does not start with a vowel. It features five unique letters and zero duplicates. A basic definition describes it as a verb meaning to make a grab toward something or, more commonly in modern usage, to voice a petty complaint. Synonyms include complain, grumble, protest and criticize. One subtle clue pointed to a term often used when someone expresses ongoing annoyance about minor issues.

Players who began with common starting words such as those rich in vowels or frequent consonants found the path clearer once the initial G was identified. Subsequent guesses that tested combinations involving R, I, P and E quickly narrowed the possibilities. The absence of repeated letters eliminated several potential traps that have tripped up solvers in previous puzzles.

The difficulty of puzzle 1874 was generally rated as medium by tracking sites that aggregate player performance. Many solvers reported completing the challenge in three or four attempts once the starting letter became clear. The word’s everyday familiarity helped experienced players, while its relative simplicity offered a confidence boost for those still building streaks.

Wordle remains free to play on the New York Times Games platform and through its mobile applications. The daily reset occurs at midnight local time in each time zone, ensuring a fresh challenge for every region. Archive access allows players to review previous solutions, though the live daily puzzle is the primary draw for most participants.

Beyond the pure entertainment value, the game has become a shared social experience. Players frequently post their results using the distinctive grid of colored squares without revealing the answer itself, allowing friends and followers to compare performance without spoilers. Online communities discuss strategies ranging from optimal starting words to letter-frequency analysis.

For August 6, the combination of a familiar definition and a clean letter set made GRIPE accessible once the first letter locked in. Those who struggled early often benefited from testing common consonant-vowel patterns that appear in English vocabulary. The solution rewarded careful elimination of impossible combinations rather than random guessing.

The New York Times continues to maintain the original rules established at the game’s launch. Hard mode, which requires players to use previously revealed letters in subsequent guesses, remains an optional setting for those seeking greater challenge. Statistics tracking average guesses, win rates and streak lengths are available to registered users.

As the daily series progresses past the 1,800 mark, the puzzles continue to balance accessibility with occasional curveballs involving less common vocabulary or unusual letter placements. Thursday’s entry leaned toward the accessible end of the spectrum, giving many players a satisfying resolution before moving on to other New York Times Games offerings.

Players who solved the puzzle can now turn their attention to the next day’s challenge, which will appear at the usual reset time. For those who prefer to wait, the answer remains available for reference, though the community generally encourages attempting the puzzle unaided first.

The enduring appeal of Wordle lies in its simplicity and the shared daily moment it creates. On August 6, that moment centered on a five-letter expression of complaint that proved both recognizable and solvable for the majority of participants who engaged with the clues or persevered through systematic guessing.

SpaceX shares crashed around 14% after the Elon Musk-led company’s aggressive AI spending plans spooked investors. The stock plunge came as analysts drew a comparison between the company’s falling valuation and reports of a SpaceX rocket part crashing into the Moon.

Parts of a SpaceX rocket unintentionally crashed into the Moon on Wednesday after drifting off course for nearly a year, media reports said. Astronomers have reportedly identified debris plumes from the impact using telescopes.

“The SpaceX rocket crash into the Moon is probably a good metaphor for the share price performance so far,” CNBC quoted Chris Beauchamp, chief market analyst at investing and trading platform IG, as saying. Shares of the rocket maker plunged nearly 14% to close at around $108 apiece.

Why did SpaceX shares crash?

The development comes after SpaceX released its first quarterly results following a stellar market debut earlier this year. The company reported a 92% year-on-year jump in revenue to $7.8 billion for the April-June quarter. SpaceX said it expects to achieve a $100 billion revenue run rate by December and plans to launch at least 1,000 next-generation V3 Starlink satellites within a year. The company also expects new capital deployments for AI computing to deliver payback in less than a year.
However, SpaceX’s capital expenditure ballooned to more than $18 billion from $2.83 billion a year earlier. The company’s CFO, Bret Johnsen, said he expects capital spending to remain at similar levels for the next couple of quarters. SpaceX sharply increased capital spending on AI, pouring in $15.83 billion in the second quarter, compared with $749 million a year earlier.

Also read | SpaceX plans to turn Starlink into full-fledged mobile service, targets Verizon, AT&T and T-Mobile
“The central question for SpaceX’s first quarter as a public company was whether the machine underneath the story actually works, and on that question Elon Musk and his team delivered a few positives,” Reuters quoted Thomas Monteiro, an analyst at Investing, as saying.

SpaceX share price

After raising $75 billion in the biggest-ever IPO in history, SpaceX began trading at $150 per share in June, marking an 11% premium to its IPO price of $135. After listing, the company’s shares surged more than 50% in just three sessions. The Elon Musk-led company’s shares have now fallen around 28% from the listing price.

However, the stock may see further selling pressure after IPO lockup expiries free up additional shares for trading. As many as 911.5 million shares will become eligible for trading this month, potentially putting more pressure on the stock price, Bloomberg reported.

Also read | What’s next for SpaceX shares? 5 trends investors should watch

(With inputs from agencies)

(Disclaimer: Recommendations, suggestions, views and opinions given by experts are their own. These do not represent the views of The Economic Times)

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NEW YORK — The New York Times Connections puzzle for Thursday, August 6, 2026, challenged players to sort 16 words into four coherent groups of four, testing both vocabulary knowledge and lateral thinking. Puzzle number 1152 featured categories ranging from childhood playthings to famous landmarks and everyday locations defined by specific physical features.

The completed groups are as follows. Yellow, the most straightforward category, consists of classic wooden toys: Alphabet Blocks, Cup-and-Ball, Jacob’s Ladder and Lincoln Logs. These traditional items have entertained children for generations through simple mechanical or construction play.

Green groups places that contain lanes: Bowling Alley, Freeway, Supermarket and Swimming Pool. Each location features designated pathways or lanes used for movement, recreation or organization of space.

Blue gathers iconic Roman landmarks: Colosseum, Pantheon, Spanish Steps and Trevi Fountain. These well-known sites draw millions of visitors annually and represent enduring symbols of the city’s architectural and historical heritage.

Purple collects places with nets: Barclays Center, Fishing Boat, Hockey Rink and Tennis Court. Nets appear in each setting for purposes ranging from sports containment to practical catch mechanisms.

Connections requires players to identify the hidden relationships among the 16 displayed words. Correct groups turn a matching color and lock into place. Players receive four mistakes before the board is revealed in full. The difficulty progression typically moves from the most obvious yellow category to the more obscure purple one.

Hints available before full solutions pointed players toward the themes without naming them outright. One set of clues described the yellow group as child’s play, the green as locations that have tracks, the blue as Italian monuments and the purple as settings involving mesh material. These prompts helped many solvers progress when the initial board appeared disparate.

The yellow group of classic wooden toys proved accessible for players familiar with traditional playthings. Lincoln Logs, in particular, evoke construction sets made of notched wooden pieces. Cup-and-ball and Jacob’s ladder rely on simple physics and dexterity, while alphabet blocks introduce early literacy through physical objects.

The green category required recognition that lanes exist in varied environments. A bowling alley contains the tracks down which balls travel. Freeways feature multiple travel lanes. Supermarkets organize aisles that function as shopping lanes. Swimming pools often mark lanes for competitive or recreational swimming.

Blue demanded knowledge of specific Roman tourist attractions. The Colosseum and Pantheon stand as ancient architectural achievements. The Spanish Steps and Trevi Fountain represent later but equally iconic public spaces that have become essential stops for visitors to the Italian capital.

Purple tested the ability to see the common presence of nets across sports and practical settings. Tennis courts and hockey rinks use nets as part of the playing boundaries or goals. Fishing boats deploy nets as primary tools. Barclays Center, a major arena, incorporates nets in its basketball and other event configurations.

Many players reported that the puzzle felt moderately challenging, with the purple category often requiring the most thought. Red herrings occasionally appeared when words seemed to fit multiple potential themes, a common feature that rewards careful consideration of the strongest overall connections.

Connections forms part of the broader New York Times Games suite that includes Wordle, Spelling Bee and other daily challenges. The game launched as a standalone offering and quickly developed a dedicated following for its emphasis on categorical reasoning rather than pure letter guessing.

Results are typically shared through a grid that indicates the order in which groups were solved and the number of mistakes made, preserving the answers themselves for others still working on the board. Online discussion often centers on which category proved most elusive and which initial groupings led players astray.

For August 6, the mix of nostalgic toys, everyday infrastructure, classical landmarks and net-equipped locations created a balanced board that rewarded both general knowledge and careful observation. Solvers who identified the Roman landmarks early often found the remaining categories easier to isolate.

The puzzle resets daily, offering a new set of 16 words and four fresh categories each morning. Archives allow review of previous solutions, though the live experience remains the primary focus for most participants.

Thursday’s edition of Connections demonstrated the game’s continuing ability to blend accessible themes with just enough obscurity to keep the experience engaging. Players who completed all four groups without exceeding the mistake limit earned a clean board and the satisfaction of having sorted the day’s linguistic puzzle correctly.