SpaceX's post-IPO plunge sets tense backdrop for first earnings report
📰 source: cnbc_topnews · 💼 business
spacex reports its first quarterly earnings as a public company on tuesday, two weeks after a brutal selloff erased over $500 billion from its market cap since its june 12 ipo debut. the stock has fallen for four straight weeks and sits more than 50% below its intraday high. the plunge has been a gift to short sellers, who have banked about $8.3 billion in paper profits, per s3 partners' matthew unterman.
investor anxiety centers on upcoming lockup expirations that could flood the market with shares, and on the company's eye-watering valuation. spacex's market cap stands at $1.4 trillion, supported by trailing revenue that implies a price-to-sales ratio in the 70s, while the company burns billions per quarter and carries roughly twice as much debt as cash. bulls like new street research see an entry point, reiterating a $165 target and arguing the 'growth runway is enormous.' bernstein analysts are more aggressive, with a $239 target, saying quarterly results 'should not matter' and that management's confidence on growth is key.
starship remains the linchpin. a 13th test flight on july 24 ended with a 'hard splashdown' of the booster. the company guided for payload delivery to orbit in the second half of the year.
why it matters: spacex's post-ipo slide and first earnings will test whether the market can justify a $1.4 trillion valuation without near-term profits.
source: cnbc_topnews
sentiment: -0.60 · impact: 0.70