Business
SpaceX Stock Slumps on Massive Spending
Shares of SpaceX fell more than 10% premarket to around $111 this morning, even after the rocket company reported a 92% surge in quarterly revenue.
Investors were spooked by the company’s $18.4 billion in capital expenditure in the second quarter alone, which compared with just $2.8 billion in the prior year. “The concern for investors is how fast expenditure growth is outpacing revenue growth,” said Kathleen Brooks, research director at brokerage XTB.
“If the share price stays below $115 on Wednesday, then it opens the door to a steeper fall below last week’s lows of $108, if we see a surge of SpaceX shares hit the market in the next two days,” Brooks said.
You must be logged in to post a comment Login