Speaker 1: Bloomberg Audio Studios, podcasts, radio news.
Speaker 2: This is the closing bell on this stock movers report.
Speaker 2: The company's making moves at the close of US trading
Speaker 2: with Carol Masser, Tim Stenebeck, Romain Bostik, and Katie Greifeld.
Speaker 3: SpaceX that first number coming the second quarter revenue seven
Speaker 3: point eight billion and Romain that is above the estimate
Speaker 3: of six point eighty one billion.
Speaker 1: Absolutely here, we're going to wait for some of these
Speaker 1: other numbers to trickle out. This is going to be
Speaker 1: a complicated report. Remember, we're basically talking about three primary businesses.
Speaker 1: Their space business, which is effectively the launch, the connectivity business,
Speaker 1: which of course is star Link in the AI business,
Speaker 1: and a lot of people not only want to see
Speaker 1: what it did on the quarter, but more importantly here
Speaker 1: what type of long term forecast the company will give
Speaker 1: with regards to that. Also, Tim, obviously the idea of
Speaker 1: where we might go with reguards to a more of
Speaker 1: a map show up a lot of speculation about what
Speaker 1: could happen with Tesla, whether that gets absorbed into SpaceX,
Speaker 1: and the idea here as to what sort of deals
Speaker 1: in partnership SpaceX can actually announce to keep investors playcated
Speaker 1: in the short term. We got a little taste of
Speaker 1: that just a few moments ago tim when they announced
Speaker 1: that they are partnering within Video to use in Video's
Speaker 1: rubinships here on these orbital data centers that is trying
Speaker 1: to build out.
Speaker 4: Yeah, that's the starlind AI on satellite compute payload, the
Speaker 4: company partnering with Nvidia to design the satellite compute payload.
Speaker 4: I want to remind people too that that connectivity business
Speaker 4: is the vast majority of its main business in terms
Speaker 4: of revenue twenty in twenty twenty five. For the year,
Speaker 4: sixty one percent of the business was connectivity. That includes
Speaker 4: the enterprising consumer versions of Starlink. Space accounts for about
Speaker 4: twenty two percent of the business, and AI as of
Speaker 4: twenty twenty five was about seventeen percent of the company's revenue.
Speaker 3: Another headline coming SpaceX second quarter AI segment operating loss
Speaker 3: of one point twenty six billion is an estimate that
Speaker 3: the street was looking for higher number two point thirty
Speaker 3: nine billion dollars. Right now, we're seeing space X shares
Speaker 3: which rallied big time today, just up about eight tens
Speaker 3: of a percent.
Speaker 1: Remain absolutely and these numbers continue to trickle out. Here,
Speaker 1: the company says that ebatah in the most recent quarter
Speaker 1: three point five billion dollars. That's well above what the
Speaker 1: street was looking for for two billion dollars. Again, that's
Speaker 1: for the company as a whole. It also says that
Speaker 1: it reached twelve million star Link subscribers at the end
Speaker 1: of the second quarter. And here's your CAPEX number, which
Speaker 1: of course a lot of people are paying attention to,
Speaker 1: eighteen point three seven billion, basically eighteen billion dollars in
Speaker 1: cap beex. Now that's backwards looking. That is for the
Speaker 1: second quarter. Will be interesting to see what the next
Speaker 1: couple of quarters look like. Here, the company did say
Speaker 1: that it did end the second quarter with one hundred
Speaker 1: billion dollars in cash and cash equivalents.
Speaker 4: Yeah, the yesser was actually for higher than that. The
Speaker 4: estim was for eighteen point six billion dollars. Some other
Speaker 4: numbers to highlight here, SpaceX reach twelve million Starlink subscribers
Speaker 4: at the end of the second quarter. As you mentioned,
Speaker 4: the AI segment operating loss one point twenty six billion dollars.
Speaker 4: The estimate was for a loss of two point three
Speaker 4: nine billion dollars. Shares bouncing around in the after hours,
Speaker 4: now just down about one point three percent, but shares
Speaker 4: surged in today's trading session, still off quite a bit
Speaker 4: from that high Earlier this year. The estimate for a
Speaker 4: second quarter starlink subscribers was twelve point one to nine,
Speaker 4: so that was that was within expectations. The company also
Speaker 4: expecting that Cursor deal to close this quarter, that is
Speaker 4: the third quarter of the year. Once again, these headlines
Speaker 4: are continuing to trickle out. SpaceX shares down just by
Speaker 4: about two point six percent.
Speaker 3: Our team putting its first story out on the Bloomberg.
Speaker 3: SpaceX's revenue exceeded Wall Street's expectations in the company's first
Speaker 3: quarterly financial report following its blockbuster IPO back in June.
Speaker 3: The satellite space in AI conglomerate reported revenue of seven
Speaker 3: point eight billion dollars, greater than the six point eighty
Speaker 3: one billion that Alys pulled by Bloomberg expected on average.
Speaker 3: Unveiled an operating loss of one point two six billion
Speaker 3: from its Ai business, better than the consensus expectation for
Speaker 3: a loss of two point thirty nine billion, but we
Speaker 3: should point out it was the largest IPO we've seen
Speaker 3: quite a roller coaster. After a couple of days initially
Speaker 3: out of the gate, when an iPod to moving higher,
Speaker 3: we've seen the stock pull back and short interest has
Speaker 3: been very high, and that is something to keep in
Speaker 3: mind as this company goes through the release and the
Speaker 3: analyst call, to see what kind of shortcovering if the
Speaker 3: news is really.
Speaker 2: Up be Well.
Speaker 1: That's what I'm curious about too, is how much of
Speaker 1: the share price reaction today is even going to be
Speaker 1: actually tied to the earnings themselves. I think it's over
Speaker 1: two hundred million shares were short of just coming into today.
Speaker 1: My guess is that number one higher as we got
Speaker 1: closer to this earning support. You have six hundred plus
Speaker 1: million shares now out there floating around, and you have
Speaker 1: a lock up expery in two days. That's going to
Speaker 1: potentially add nine hundred and eleven million more shares, Not
Speaker 1: to mention you get almost double that when you get
Speaker 1: towards the end of the year. So that's going to
Speaker 1: put potentially put some downward pressure on this stock. But
Speaker 1: of course a lot will depend on the conference call,
Speaker 1: which kicks off about thirty minutes time, and we're going
Speaker 1: to hear from Elon Musk and he's going to have
Speaker 1: to say, look, you know, I got a plan. Either
Speaker 1: you believe me or you don't.
Speaker 4: That's the Elon premium that Max Schafkin was writing about
Speaker 4: for the Business Week Daily newsletter earlier today. I also
Speaker 4: want to point out that we're seeing a relatively muted
Speaker 4: reaction as of now just to these numbers, like you said,
Speaker 4: remain a lot of it will likely come on the
Speaker 4: call and going into As of this morning, the options
Speaker 4: market was pricing a move of upwards of fourteen percent
Speaker 4: to the upside or the downside getting a little more
Speaker 4: information from the company about the most recent quarter government contracts.
Speaker 4: Interestingly enough, six billion dollars in multi year US government contracts.
Speaker 4: That's for Starshield, our own down hole reporting. SpaceX shares
Speaker 4: up right now by about one percent.
Speaker 3: And let's not forget Lauren Grush, who wrote a preview
Speaker 3: and covers this company and the space industry, said, you
Speaker 3: know what's really important is getting also updates on Starship specifically,
Speaker 3: are there any technical setbacks because this is certainly key
Speaker 3: in terms of getting satellites out into the sub orbital
Speaker 3: or they've only been suborbital, but getting them further out
Speaker 3: and that's part of the idea of getting either data
Speaker 3: centers in space, but this is so important, certainly to
Speaker 3: the company story going forward.
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