SpaceX rocket crashes into the Moon, shares plunge, and the stock hits a record low

[Financial News]  

Elon Musk's SpaceX shares plunged by double digits on the 5th, local time.
Although SpaceX reported better-than-expected results in its first earnings release since going public after the market closed the previous day, the company faced a broad sell-off on concerns over massive artificial intelligence (AI) investments.
According to CNBC, analysts in particular saw the stock's plunge on the day SpaceX Falcon 9 debris crashed into the Moon as a "great metaphor."
After narrowing its early losses in after-hours trading the previous day, SpaceX continued to slide in regular trading on the day.
Although second-quarter revenue surged 92% from a year earlier, capital expenditures jumped sixfold to $18.4 billion, with most of that spending tied to AI. Investor anxiety deepened as a result.
Concerns also grew over how many shares could flood the market when the lockup expires on the 6th.
According to reports, about four tons of debris from a SpaceX Falcon 9 rocket flying at 8,690 kilometers per hour crashed into the Moon at 2:35 a.m. Eastern Time on the day, or 3:35 p.m. Korea time on the 5th. The impact's aftermath has not yet been confirmed.
Chris Beauchamp, head of market analysis at trading platform IG, said, "The SpaceX rocket debris crashing into the Moon this morning is probably a great metaphor for the stock's performance so far."
SpaceX shares surged 8.7% in regular trading on the day of the earnings release, but then plunged 13% on the 5th, erasing the previous day's gains and falling to a record low.
Russ Mould, investment director at AJ Bell, said, "In terms of visual metaphors, the fact that the SpaceX rocket crashed into the Moon just hours after the company announced its first quarterly results since its market debut feels almost too on the nose."
Mould pointed out that "the crucial difference between SpaceX and other companies pouring money into the AI arms race is that SpaceX still has not generated cash flow at a meaningful level."
Beauchamp also said that Starlink, SpaceX's flagship business, is "clearly doing well," but added that the stock needs "a clearer path to profitability" to rise.
Meanwhile, 912 million shares will come out of lockup on the 6th. No one knows how many of those shares, equal to three to four times the current float, will actually hit the market.
There is some expectation that investors holding these shares, as Musk loyalists, may be reluctant to sell because of their confidence in the future. Still, concerns are rising that a substantial amount could be sold for profit and enter the market.


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