Successful Starship Launch Fails to Boost SpaceX Stock Amid Concerns Over High AI Spending
SpaceX recently completed the 13th test flight of its large Starship rocket, which was largely successful. Despite achieving key objectives like a soft splashdown and deploying Starlink satellites, investors responded negatively, with the company's stock dropping over 4% in early trading after the launch. Investor concerns stem from SpaceX’s significant capital expenditure on artificial intelligence infrastructure. In Q1 of this year alone, 76% of its $10 billion capex was allocated to AI projects—primarily data centers. This spending is accelerating compared to previous years and has raised doubts about whether the investment will yield returns. The broader market remains skeptical as many tech companies struggle with profitability amid heavy AI investments. Unlike Alphabet, which at least generates free cash flow despite its negative Q1 2026 results, SpaceX isn't profitable yet. This lack of profitability combined with high spending is weighing on investor sentiment and the company's stock performance.
Tickers: $SPCX
Topics: AI spending investor sentiment SpaceX Starship test flight