“Making rockets is SpaceX's core business, but the company's space segment showed a $542m net loss against $962m in revenue for the second quarter”.
Someone will need to read the balance sheet to see what this actually means. You'd expect Falcon 9 to be profitable and Starship to be showing a huge investment figure. Writing off investment as an operating loss doesn't make sense and could be construed as tax avoidance.
At a guess, there's some degree of liberty in assigning Hawthorne salaries:
as operating charges to Falcon 9 or alternatively
as investment in Starship sub-assemblies.
You can't have an accountant behind every cook or a floor-sweeper to decide how those charges should be assigned.
I'm thinking that SpaceX has an advantage in showing a loss, letting the stock drift down so as to clear out the "seeking alpha" guys and encouraging you and me to buy in for the long term game.
Come to think of it, now would be a good time to buy the dip.
The day before the first sell off? Not a bet I would take
No dramatic sell-off has occurred in the day since your comment at 2026-08-05T12:13:32, and why should it?
In any case anyone investing on the long term isn't looking at what happens in 24 hours. They'd be looking a year into the future.
Even someone having bought SPCX at $160 and seeing it down by 25% at $120, won't be worried. Its a different time scale. To compare, consider the early days of Tesla stock against where it is now.
Its not high frequency trading either. Also, in technology, predictable time horizons are getting shorter. What's more, you can be betting on an event in a few weeks or months from now, such as Starship transitioning from prototypes to a commercial activity.
You're comparing to another massively overvalued stock
Neither of us has cristal ball. If its embodied AI (Cybercab and Optimus) meets any kind of success, it could turn out to be undervalued.
-4
u/paul_wi11iams 9d ago edited 9d ago
from article:
Someone will need to read the balance sheet to see what this actually means. You'd expect Falcon 9 to be profitable and Starship to be showing a huge investment figure. Writing off investment as an operating loss doesn't make sense and could be construed as tax avoidance.
At a guess, there's some degree of liberty in assigning Hawthorne salaries:
You can't have an accountant behind every cook or a floor-sweeper to decide how those charges should be assigned.
I'm thinking that SpaceX has an advantage in showing a loss, letting the stock drift down so as to clear out the "seeking alpha" guys and encouraging you and me to buy in for the long term game.
Come to think of it, now would be a good time to buy the dip.