Investor and television personality Kevin O’Leary said he may begin buying SpaceX (NASDAQ:SPCX) shares once post-IPO volatility settles, arguing that the bigger long-term opportunity lies in Elon Musk potentially connecting SpaceX with Tesla Inc. (NASDAQ:TSLA), artificial intelligence, robotics and autonomous driving.
O’Leary Eyes Entry After IPO Volatility
"I passed on my IPO allocation because liquidity matters to me. But as the stock settles over the next 30 to 60 days, I’ll be watching closely, and I may start building a position," O’Leary said on X. He identified $100 to $110 as a range where volatility could clear.
O’Leary said investors should not judge SpaceX on one quarter. "The bigger opportunity is what Elon could eventually build" by bringing Musk’s businesses closer together, he said. Previous reporting highlighted Tesla-SpaceX merger speculation, while O’Leary has urged investors to own SpaceX, OpenAI and Anthropic rather than pick one winner.
SpaceX Earnings Strengthen Long-Term Bull Case
SpaceX’s first public earnings report gave bulls fresh data. Second-quarter revenue jumped 92% to $7.8 billion, beating the $6.9 billion consensus estimate, while its loss of 9 cents per share beat expectations for a 26-cent loss. Starlink subscribers doubled to 12 million, and AI revenue surged about 250%.
Capital expenditures topped $18 billion, including $15.83 billion for AI, while operating losses narrowed to $143 million from $970 million. Musk said SpaceX expects a $100 billion revenue run rate by December, and CFO Bret Johnsen said another $6.7 billion of cloud-services contracts will begin ramping in October.
Analysts praised the growth while flagging execution risk. RBC Capital Markets analyst Ken Herbert called the results "positive," saying SpaceX beat expectations. Zacks strategist Brian Mulberry called AI monetization a "tremendous upside surprise," according to Reuters.
Lockup Expiration Keeps Shares Under Pressure
SpaceX shares have fallen more than a quarter since their June 12 debut, even after Thursday’s first lockup expiration made 911.5 million additional shares eligible for sale.
Benzinga’s Edge Stock Rankings indicate that SpaceX stock maintains a weak price trend in the short, long, and medium terms.
Price Action: SPCX rose 0.05% to $114.98 in pre-market trading on Friday.
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