Ark Invest: SpaceX Drop Ignores $28.5T Market

SpaceX shares tumbled about 14% on Wednesday following its first earnings call as a public company, as investors focused on higher-than-expected spending on AI infrastructure and losses. ARK Invest, in its latest newsletter, dismissed the market reaction as short-term and stated it overlooked SpaceX’s $28.5 trillion total addressable market outlined in its IPO filings. The firm remains bullish on Elon Musk’s multiplanetary and AI ambitions.

SpaceX reported $7.8 billion in Q2 revenue, up 92% year-over-year, with a net loss narrowing to $541 million. However, shares dropped as investors scrutinized the $18.4 billion in capital expenditure recorded for the quarter, including $15.8 billion spent on building AI capabilities.

ARK highlighted SpaceX’s plans to expand its terrestrial computing power to between 5 and 10 gigawatts by the end of next year. The firm noted payback periods of less than a year and potential monetization of $30 to $50 billion per gigawatt, which it believes supports the company’s $1 trillion revenue target by 2030. Meanwhile, SpaceX is accelerating its Starlink network, with the next Starship flight in late August set to deploy satellites delivering about 20 times the bandwidth of current versions.

Cathie Wood’s ARK has made SpaceX one of its largest holdings since the company’s June 2026 IPO. ARK bought roughly $37 million more shares last week amid the post-earnings volatility. SPCX shares closed up 4% on Monday, climbing back above their IPO price of $135 for the first time since July 16.

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