SpaceX delivered a blockbuster report in the third quarter: revenue soared 161% year over year to $14.58 billion, significantly beating analysts’ forecasts.
Adjusted EBITDA reached $8.81 billion, 34% above expectations. Following these financial results, shares of $SPCXB rose 3%, climbing to $152.50.
However, there’s a worrying caveat. The company’s capital expenditures totaled a staggering $19.59 billion—more than its entire quarterly revenue. Such massive spending, likely tied to the development of Starship and Starlink, raises questions about the company’s future free cash flow.
Personally, I have mixed feelings: on one hand, this is aggressive expansion and a push to capture the market; on the other, it’s a massive spending budget.
What do you think: are such huge capital investments a justified risk in pursuit of future dominance, or a dangerous signal for investors?
Adjusted EBITDA reached $8.81 billion, 34% above expectations. Following these financial results, shares of $SPCXB rose 3%, climbing to $152.50.
However, there’s a worrying caveat. The company’s capital expenditures totaled a staggering $19.59 billion—more than its entire quarterly revenue. Such massive spending, likely tied to the development of Starship and Starlink, raises questions about the company’s future free cash flow.
Personally, I have mixed feelings: on one hand, this is aggressive expansion and a push to capture the market; on the other, it’s a massive spending budget.
What do you think: are such huge capital investments a justified risk in pursuit of future dominance, or a dangerous signal for investors?