SpaceX Earnings: 3 Numbers Long-Term Investors Should Watch
SpaceX's upcoming earnings update could tell us a little more about its prospects.
Overview
The third quarter of the calendar year, which corresponds to most public corporations' fiscal third quarters, just ended. In the coming weeks, many companies will be releasing their financial results for this period. One of them will be Space Exploration Technologies (NASDAQ: SPCX), the rocket company that broke the record for the largest IPO ever in June. Many investors have high expectations for SpaceX, but will the company live up to them? It's too early to tell, but several metrics in the company's next earnings update could provide clues. Let's consider three of them.
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SpaceX has identified artificial intelligence (AI) as its largest opportunity by far. The company has said it sees a $26.5 trillion total addressable market (TAM) in AI, which accounts for the overwhelming majority of its $28.5 trillion TAM across all three segments. And CEO Elon Musk has also said that the company's internal revenue projection for 2030 is $1 trillion, with most of that coming from its AI segment. SpaceX is nowhere near there yet. In the second quarter, the company's AI revenue was $2.6 billion. But it did grow by an impressive 247.5% year over year. Total revenue was $7.8 billion, up 92% year over year.
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Originally published at www.fool.com.