Investor Gene Munster sees the second-quarter financial results from Space Exploration Technologies Corp (NASDAQ:SPCX) and outlook as strong. Munster thinks investors sending the stock down in after-hours Tuesday may have the wrong idea.
• SpaceX stock is among today’s weakest performers. Why is SPCX stock dropping?
Gene Munster on SpaceX Earnings
The highly anticipated first public financial report and conference call from SpaceX comes with shares trading lower Tuesday.
"SPCX down 7% on great outlook given capex will be about 65% higher than the Street in Sep and Dec," Munster tweeted.
The investor said, "market missing the point."
The Deepwater Management managing partner said higher capex is good for SpaceX because the stock is early.
Munster highlighted SpaceX’s contracted revenue and rising run rate, which could hit $100 billion by the end of the year.
"Elon is the master at explaining the long-term vision in simple terms. That’s a key reason why shares of SpaceX are going higher."
Munster highlighted SpaceX beating revenue estimates and sees Cloud and Starlink being the key contributors, adding $400 million and $450 million more than expected.
With shares trading lower ahead of the conference call, Munster offered a reason.
"Makes sense. The first quarter as a public company is always expected to be a blowout. That’s what we got."
SpaceX Hints at Future Growth
Highlighting management commentary from the conference call, Munster shared two key items that could hint at future growth for the space company.
SpaceX President Gwynne Shotwell said Starlink Mobile will start at the end of 2027. SpaceX expects to acquire lots of customers from existing mobile companies to be a true fourth carrier in the U.S.
While this could mean higher capex, Shotwell said existing wireless spectrum bought from EchoStar will help in this venture.
The SpaceX president also said SpaceX expects to be on the Moon in 2028.
"In line with roughly what has been talked about before and the market doesn’t believe it," Munster said.
Munster puts a 70% chance on this happening in 2028 and a 95% chance of happening in 2029.
"Either way, we are close. That’s one reason to own SPCX. The carrot of the moon will give shares a perpetual bid."
SpaceX Stock Price Action
SpaceX stock is down 8% to $115.28 in after-hours trading Tuesday versus a 52-week trading range of $104.83 to $225.64.
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