Space Exploration Technologies Corp. (NASDAQ:SPCX) shares are tumbling Wednesday after the company’s debut earnings delivered a revenue beat that was overshadowed by a staggering expansion in artificial intelligence spending.

• SpaceX stock is among today’s weakest performers. Why is SPCX stock dropping?

Despite Major Q2 Beats, Starlink ARPU Compression and Slowing Momentum

Second-quarter revenue of $7.81 billion nearly doubled from the prior year and cleared the $6.93 billion consensus, with the AI segment surging 247% to $2.56 billion, Connectivity up 66% to $4.29 billion and Space advancing 29% to $962 million. The loss per share of nine cents came in far better than the 24 cent loss analysts had expected. Despite those headline beats, three specific deteriorating trends are driving the selling pressure.

Starlink’s average revenue per user, which held at $66 per month in the second quarter, was flat from the first quarter but down roughly 22% from the $85 recorded a year earlier. That steady compression raises questions about whether per-user economics can hold as the platform pushes deeper into less affluent markets to reach its next wave of subscribers.

While year-over-year comparisons look strong, revenue on a sequential basis moved lower from the second half of 2025 into the first half of 2026, a trend that undercuts the narrative of uninterrupted momentum that had supported the stock’s premium valuation since its IPO.

According to the BBC, the net loss for the quarter totaled $143 million and the cumulative first-half loss reached $2 billion, a period during which total quarterly expenditures ballooned to $18.3 billion, more than six times the year-ago level, with AI investment responsible for the overwhelming majority of that expansion.

Another concern is a quarter-over-quarter decline in both Falcon launches and mass delivered to orbit, a three-month pullback that weighed on the Space segment, which generated an operating loss of $542 million during the period. The AI segment added another $1.26 billion in operating losses, leaving Connectivity’s $1.66 billion operating profit as the only division contributing positively to the bottom line.

A Falcon 9 Upper Stage Strikes the Moon

According to the BBC, a drifting Falcon 9 upper stage struck the lunar surface near the Einstein Crater on Wednesday after spending months on a collision trajectory. NASA confirmed the event carries no risk to Earth and will monitor the site for research purposes, though scientists have raised broader concerns about protecting Apollo landing zones and undisturbed lunar soil as traffic around the Moon increases.

SPCX Shares Are Plummeting

SPCX Price Action: SpaceX shares were down 12.08% at $110.19 at the time of publication on Wednesday, according to Benzinga Pro.

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