What's next for SpaceX shares? 5 trends investors should watch

SpaceX delivered better-than-expected second-quarter results, with revenue and earnings surpassing Wall Street estimates. Revenue jumped about 92% from a year earlier, driven by strong growth in Starlink and AI-related businesses. However, the upbeat earnings failed to lift investor sentiment, with the stock falling in after-hours trading as concerns over AI spending and the upcoming lock-up expiry took centre stage. (Sources: Reuters, CNBC, Yahoo Finance)

Despite the earnings beat, investors focused on SpaceX's rapidly rising spending on artificial intelligence infrastructure. The company continues to invest heavily in AI data centres and computing capacity, pushing capital expenditure higher. Analysts believe these elevated investments could pressure margins and delay stronger profitability in the near term.

Starlink continued to be the company's biggest growth driver during the quarter, delivering strong subscriber additions and revenue growth. The satellite internet business helped offset the impact of rising AI investments, while management also pointed to healthy demand for launch services and future expansion through Starship missions.

Attention is now shifting to the company's lock-up expiry, when around 912 million shares held by employees and early investors become eligible for sale. The event is expected to significantly increase the stock's tradable float and could trigger higher volatility if a large number of insiders decide to sell their holdings.

Many early investors and employees purchased their shares at prices well below the IPO level, giving them a strong incentive to book profits. While analysts expect some degree of selling after the lock-up expires, the overall market impact will depend on how many shareholders choose to cash out immediately rather than continue holding their stakes.

Investors will closely watch whether SpaceX can control its AI-related capital spending while maintaining strong growth in Starlink and its launch business. The extent of insider selling after the lock-up expiry will also be a key factor, as will the company's ability to improve profitability while continuing to invest aggressively in future growth.