SpaceX Shares Sink After First Earnings Report Reveals Huge AI Spending Plans

August 5, 2026

Breaking News

Image source: Unsplash

Shares in SpaceX tumbled after the company's first-ever earnings report revealed a huge jump in spending on artificial intelligence, spooking investors.

While quarterly revenue nearly doubled to $7.8 billion from a year earlier, spending ballooned to $18.3 billion — more than six times last year's level — with the bulk allocated to AI.

The company builds space rockets, Starlink internet satellites, and also owns the social media platform X. It began trading on the U.S. stock market in June.

SpaceX shares fell 10% in after-hours trading.

Elon Musk said during an investor call after the results that people seemed to be “underestimating” SpaceX. Yahoo Finance reports.

EdgeUp

💊 Merck Hikes Revenue Outlook as New Drug Sales Grow, but Cuts Profit Guidance Due to Deal Charges

Merck on Tuesday beat second-quarter estimates and raised its revenue outlook, as a slate of new products showed strong growth.

But the pharmaceutical giant cut its profit guidance due to a charge tied to its acquisition of biotech company Terns Pharmaceuticals.

Merck now anticipates 2026 revenue will come in between $66.3 billion and $67.3 billion, up from its previous guidance of $65.8 billion to $67 billion. CNBC reports.

🛢️ BP Profit More Than Doubles as Trump Blasts Big Oil for ‘Making Too Much Money’

Britain’s BP on Tuesday reported a sharp upswing in second-quarter profit, as energy supermajors reaped massive profits from higher fossil fuel prices amid hostilities between the U.S. and Iran.

The oil giant posted underlying replacement cost profit — used as a proxy for net profit — of $5.7 billion for the April to June period. That comfortably beat analyst expectations of $5 billion, according to an LSEG-compiled consensus.

BP’s net profit came in at $2.35 billion over the same period last year and $3.2 billion for the first three months of 2026. CNBC reports.

📦 Jeff Bezos Plans to Sell $4.07 Billion Worth of Amazon Stock as Shares Shoot Up Over 20% After Earnings

A Form 144 filing submitted to the Securities and Exchange Commission on Monday showed that Jeff Bezos intends to sell 15 million shares of Amazon common stock through Morgan Stanley Smith Barney LLC.

The proposed transaction was valued at approximately $4.07 billion based on the market value listed in the filing. The shares represent a small portion of Amazon's more than 10.78 billion shares outstanding. Yahoo Finance reports.

🛰️ SpaceX's First-Ever Earnings Report Comes as Stock Hits New All-Time Low: Q2 Preview

SpaceX will report its highly anticipated second-quarter results on Tuesday after the bell — its first report as a public company — as the stock remains in a steep decline.

SpaceX shares have shed nearly 30% from their $150 market debut last month and remain down roughly 50% from their all-time high of $225.64. With earnings on tap, investors will be looking for a catalyst to reignite the stock.

Adding to the pressure, SpaceX stock hit a new all-time low on Monday morning before rebounding slightly during the session to close 1.7% higher at $110.25. Yahoo Finance reports.

🍔 McDonald’s Earnings Beat Estimates, Chain Announces New U.S. Head to Accelerate Growth

McDonald’s on Tuesday reported mixed quarterly results as U.S. same-store sales growth slowed.

The company also announced that Skye Anderson is assuming the role of President of McDonald’s USA, effective Tuesday, as it looks to boost performance in its home market. She succeeds Joe Erlinger, who led the division for more than six years.

Anderson, a 26-year McDonald’s veteran, previously served as Chief Operating Officer of McDonald’s USA and led the company’s Global Business Services unit before that. CNBC reports.

🍎 Apple’s India Sales Top $10 Billion on Widening Retail Push

Apple exceeded $10 billion in annual sales in India for the first time last fiscal year, underscoring surging demand for its premium devices as the company steadily expands its retail network.

Revenue grew at a double-digit percentage rate in the 12 months through March, up from about $9 billion a year earlier, according to a person familiar with the matter.

Apple’s flagship iPhones accounted for a significant majority of sales, while demand for iPads and MacBooks also increased. Yahoo Finance reports.

👻 Snap’s Stock Jumps 8% on Earnings Beat and Strong Sales Forecast

Snap reported better-than-expected second-quarter revenue and earnings and issued a forecast for the current period that topped analysts’ estimates.

The stock jumped about 8% in extended trading.

Revenue in the second quarter rose 19% to $1.34 billion, the company said in a statement.

Snap’s net loss narrowed to $164 million from $262.6 million, or 16 cents per share, a year earlier. CNBC reports.

Top 5 Movers in Early Pre-Market

(All pricing and percent gains are based on Early Pre-Market from 4:00 AM to 7:00 AM ET). Stock Analysis reports.

1) GTE: Gran Tierra Energy Inc.
Total gain: +38.51%

2) JLHL: Julong Holding Limited
Total gain: +31.92%

3) APPS: Digital Turbine, Inc.
Total gain: +25.13%

4) SHOP: Shopify Inc.
Total gain: +25.10%

5) BLMN: Bloomin' Brands, Inc.
Total gain: +23.88%

Yesterday’s Biggest Movers

The closing price of the top three market percent gainers trading near or above $3 on August 4.

(All pricing and percent gains are based on regular market trading hours from 9:30 AM to 4:00 PM ET) Stock Analysis reports.

1) AMIX: Autonomix Medical, Inc.
Total gain: +434.25%
The company announced the issuance of U.S. Patent No. 12,433,670, titled “Systems and Methods for Treating Cancer and/or Augmenting Organ Function.” The patent expands the Company’s intellectual property protection for technologies designed to sense, map and selectively target nerves associated with tumors, cancer-related pain, organ function and other autonomic nervous system disorders. Globe Newswire reports.

2) IBTA: Ibotta, Inc.
Total gain: +51.91%
The company announced financial results for the second quarter ended June 30, 2026. Businesswire reports.

3) XGN: Exagen Inc.
Total gain: +37.82%
The stock appeared to be moving on no notable news.

Today’s Notable Earnings

(Estimate and Actual numbers represent Earnings Per Share in US Dollars)

SZKMY: Suzuki Motor
Q1 2026
Before Market Open
Estimate: N/A
Actual: 2.390

ADRNY: Koninklijke Ahold Delhaiz
Q2 2026
Before Market Open
Estimate: 0.720
Actual: 0.730

HMC: Honda Motor Co
Q1 2027
Before Market Open
Estimate: 1.270
Actual: 2.178

Today’s Economic Dates

Time (ET) / Report / Period

8:15 AM - ADP National Employment Report - July
9:45 AM - US Services PMI - July
10:00 AM - ISM Report On Business Services PMI - July

Parting Thoughts

“If you have trouble imagining a 20% loss in the stock market, you shouldn't be in stocks.”

– John C. Bogle

Sourced in: The Little Book of Common Sense Investing — GoodReads.

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