SpaceX Launched 3 Rockets in 13 Hours and the Stock Jumped 7%. Here's the Number That Actually Matters.
Key Points
SpaceX is currently valued around $2 trillion, placing it in the top 10 largest companies by market cap.
The company's connectivity segment, led by Starlink, is generating the most revenue for SpaceX.
In the second quarter of 2026, SpaceX's space segment posted a $542 million operating loss.
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Space Exploration Technologies (NASDAQ: SPCX) has proven itself to be the most prolific launcher of rockets in the world. Recently, the company launched three rockets in under 13 hours. The excitement of the feat helped the stock pop about 7% immediately following. Price volatility like this is normal for Elon Musk's space stock, but the cadence of launches is not really what investors should be watching. Instead, the company's ability to generate positive free cash flow one day is what I'm looking for.
When SpaceX reported its second-quarter earnings, revenue jumped 92% to $7.8 billion, but the net loss of $541 million overshadowed it. That's an improvement over the $1 billion loss in the same quarter last year, but there's still a long way to go, and spending isn't slowing. Through the first half of 2026, SpaceX reported $4.6 billion in adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA), but total capital expenditures exceeded $28 billion.
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Yes, the IPO bought SpaceX some time, but at some point, Musk's company will have to reckon with the facts that spending on artificial intelligence has ballooned while revenue hasn't kept pace, and the launches aren't close to profitability. Right now, SpaceX has about $98 billion in cash and marketable securities. That's an impressive amount, but when you're spending close to $30 billion in just six months, the shortened runway scares me more than a flight to the moon.
Image source: Getty Images.
SpaceX is trading around $157 at the time of writing, valuing the company at approximately $2 trillion. Of course, SpaceX needs to spend more to make more, but at this price, there's simply no room for error, and if the company's free cash flow becomes increasingly negative, I'm not sure how long the valuation can be justified.
Three launches in 13 hours is an incredible feat, but it doesn't change the fact that a $2 trillion market cap is light-years ahead of SpaceX's fundamentals.
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Catie Hogan has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
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