Should You Buy SpaceX Stock Before Aug. 4?
Key Points
SpaceX stock is down 48% from its post-IPO high.
Wall Street expects SpaceX to report a healthy jump in revenue, but its continued operating losses may overshadow that top-line growth.
While SpaceX has recently announced a number of AI infrastructure deals, operational hurdles with Starship and ongoing capex concerns linger.
A little over a month ago, Space Exploration Technologies (NASDAQ: SPCX) completed the largest IPO in history. Initially, SpaceX stock surged, briefly touching an intraday high above $225 per share and eclipsing Amazon's market capitalization.
However, over the last few weeks, SpaceX stock has witnessed significant pressure. As of the closing bell Thursday, shares were down by 48% from their post-IPO high, and off 21% from their opening price on the first day of trading. With SpaceX's first earnings report as a public company scheduled for Aug. 4, is now an opportunity to buy the dip?
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What does Wall Street expect for SpaceX earnings?
The consensus estimate among analysts is that SpaceX will report revenue of roughly $6.9 billion and a loss of $0.28 per share for the second quarter. While this would represent a 47% increase from the company's first-quarter revenue, the bottom line is expected to remain deeply negative -- underscoring the capital-intensive nature of SpaceX's various businesses.
Keep an eye out for these issues on the earnings call
Analysts will likely press management for information on a number of operational issues. For starters, they will want details about Starship Flight 13, which SpaceX was forced to scrub at launch earlier this month.
Wall Street will almost certainly ask questions about SpaceX's AI roadmap as well. Specifically, management should touch on progress around its $82 billion worth of capacity contracts with Google Cloud, Anthropic, and Reflection AI, and also address the integration of the company's recent $60 billion Cursor acquisition.
Should you buy SpaceX stock right now?
Smart investors understand that timing stock purchases around a single event is a fool's errand. Employing a long-term horizon and a steady investing cadence remains the most reliable approach to creating wealth.
Currently, it is simply too difficult to know whether SpaceX stock is a falling knife or simply undergoing a temporary correction. Prudent investors would be best off sitting on the sidelines until the company reports earnings. Then, they can digest the numbers and management's commentary before making a decision about whether to buy shares.
Adam Spatacco has positions in Amazon. The Motley Fool has positions in and recommends Amazon. The Motley Fool has a disclosure policy.