We bought SpaceX at $121. Here's why we're buying more at higher prices
SpaceX's Starlink, mobile and AI businesses are expanding. Here's why we're adding to the position after the stock's pullback.
TL;DR
- SpaceX has expanded its position in the company, buying more shares at approximately $161 after an initial purchase around $121.
- The company is growing beyond its core business of reusable rockets with Starlink (satellite internet), wireless communications, and artificial intelligence.
- Starlink is a key driver of recurring revenue, with its connectivity segment revenue rising 66% year over year in Q2 and subscriber base more than doubling.
- SpaceX is acquiring wireless spectrum licenses for approximately $8 billion and received FCC approval for next-generation Starlink Mobile satellites, potentially enabling direct connection to mobile devices.
- SpaceX's AI business generated $2.56 billion in revenue in Q2, up 247% year over year, with $14.1 billion in contracted AI cloud sales.
- The stock experienced a pullback, trading around $154, about 32% below its 52-week high, reinforcing the decision to buy more.
- Capital expenditure is a concern, with $28.5 billion in H1 2026 compared to $3.5 billion in operating cash flow, but the long-term potential in space-based technology is seen as significant.