Parts of a SpaceX rocket unintentionally crashed into the Moon on Wednesday after drifting off course for nearly a year, media reports said. Astronomers have reportedly identified debris plumes from the impact using telescopes.
“The SpaceX rocket crash into the Moon is probably a good metaphor for the share price performance so far,” CNBC quoted Chris Beauchamp, chief market analyst at investing and trading platform IG, as saying. Shares of the rocket maker plunged nearly 14% to close at around $108 apiece.
Why did SpaceX shares crash?
The development comes after SpaceX released its first quarterly results following a stellar market debut earlier this year. The company reported a 92% year-on-year jump in revenue to $7.8 billion for the April-June quarter. SpaceX said it expects to achieve a $100 billion revenue run rate by December and plans to launch at least 1,000 next-generation V3 Starlink satellites within a year. The company also expects new capital deployments for AI computing to deliver payback in less than a year.However, SpaceX’s capital expenditure ballooned to more than $18 billion from $2.83 billion a year earlier. The company’s CFO, Bret Johnsen, said he expects capital spending to remain at similar levels for the next couple of quarters. SpaceX sharply increased capital spending on AI, pouring in $15.83 billion in the second quarter, compared with $749 million a year earlier.
Also read | SpaceX plans to turn Starlink into full-fledged mobile service, targets Verizon, AT&T and T-Mobile
Elon Musk and his team delivered a few positives," Reuters quoted Thomas Monteiro, an analyst at Investing, as saying.
SpaceX share price
After raising $75 billion in the biggest-ever IPO in history, SpaceX began trading at $150 per share in June, marking an 11% premium to its IPO price of $135. After listing, the company’s shares surged more than 50% in just three sessions. The Elon Musk-led company’s shares have now fallen around 28% from the listing price.However, the stock may see further selling pressure after IPO lockup expiries free up additional shares for trading. As many as 911.5 million shares will become eligible for trading this month, potentially putting more pressure on the stock price, Bloomberg reported.
Also read |What's next for SpaceX shares? 5 trends investors should watch
(With inputs from agencies)
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