Ross Gerber said SpaceX remains a compelling stock to own despite a recent operating loss from its artificial intelligence business.
This assessment comes as investors weigh the high costs of AI development against the company's ability to generate massive top-line growth. The tension between immediate losses and future scaling is a central theme for private companies eyeing public markets.
Speaking on Bloomberg Television's program "Bloomberg The Close," the founder of Gerber Kawasaki Wealth and Investment Management discussed the company's performance during the second quarter [1]. Gerber said that SpaceX posted Q2 revenue of $7.8 billion [1]. This figure topped Wall Street estimates, signaling that the company's core operations continue to expand rapidly.
However, the financial results also revealed a significant operating loss of $1.26 billion tied to the company's AI business [1]. While such a loss might deter some investors, Gerber said the strong revenue growth outweighs the AI-related deficit.
Market interest in the company remains high as share prices fluctuate in private secondary markets. Some references to the SpaceX IPO price point to $135 per share [2], while more recent high share prices have reached around $225 per share [2].
Gerber's outlook suggests that the infrastructure and technological advantages of SpaceX provide a buffer against the volatility of AI spending. The company continues to dominate the launch market, which provides the capital necessary to fund speculative ventures in AI, and satellite communications.
“SpaceX posted Q2 revenue of $7.8 billion”
The disparity between SpaceX's multi-billion dollar revenue and its AI-driven losses reflects a broader trend in the tech industry where companies prioritize aggressive AI integration over short-term profitability. By maintaining a dominant position in space launch and satellite services, SpaceX is attempting to subsidize the high cost of AI development to secure a future technological advantage.
