SpaceX Stock Slides 11% as Musk's AI Bill Has Traders Seeing Stars — Literally

Shares of SpaceX (SPCX) fell more than 11% in pre-market trading despite the company posting stronger-than-expected first quarterly results as a listed company. Quarterly revenue came in at $7.8 billion, up 92% year over year, exceeding Wall Street estimates, according to the company's earnings report.

The decline was attributed by market participants to concerns over the company's elevated artificial intelligence spending plans, which prompted questions about future profitability and margins. Piper Sandler subsequently lowered its price target on the SPCX stock to $140. The move in the price target added to the selling pressure on the ticker.

SpaceX, the space technology firm founded by Elon Musk, released its inaugural earnings report since going public. The results sparked discussion among traders as the underlying top-line performance contrasted with the negative share price reaction.

Investor focus has shifted toward the company's capital expenditure commitments tied to AI infrastructure, a spending category that has come under increased scrutiny across the technology sector. Analysts have cited the magnitude of those outlays as a near-term overhang on the stock, even as headline revenue growth accelerated during the quarter.

The session's price action underscored a divergence between operational results and forward-looking spending concerns that has shaped recent trading across high-valuation technology names.