SPCX
AI is forcing Big Tech to do something its never done: Spend more than it earns, and Wall Street hates it
Article Summary
SELL- Alphabet Inc. (NASDAQ: GOOGL, GOOG) stock fell nearly 7% after posting its worst day since tariffs as investors punished SPCX for posting its most-profitable quarter in corporate history with $112 billion in profit, but 69% of that came from unrealized paper gains on its stakes in SpaceX and Anthropic, not core business.
- For the first time in SPCX's history, Alphabet became cash flow negative, with less cash entering the company than leaving it, and management warned 2027 capital expenditures would be significantly higher, deepening anxiety on the Street.
- The company's latest filing Thursday showed more than $800 billion in purchase commitments and other obligations, including $51 billion spent backstopping other companies' data centers.
- At least six firms cut price targets for Alphabet in response, including Piper Sandler, UBS, Barclays, and D.A.
- Davidson, while Barclays raised its target.
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Growth Stock Scoring Breakdown
| METRIC | VALUE | WEIGHT | ANALYSIS |
|---|---|---|---|
| Sales Growth TTM ? | 0.0% | 25% | 20.0 ptsMinimal (0.0%) - Very weak |
| EPS Growth Next 5Y ? | 0.0% | 25% | 10.0 ptsVery Weak (0.0%) - Minimal expectations |
| Target Price Upside ? | 100.2% | 20% | 100.0 ptsMassive Upside (100.2%) - Target: $236.72 vs Current: $118.24 |
| Gross Margin % ? | — | 15% | 40.0 ptsNo Gross Margin Data |
| Drawdown from 52-Wk High ? | -47.6% | 15% | 100.0 ptsDeep Discount (-47.6%) - Best entry opportunity |
Disclaimer: This rating is for informational purposes only and is not financial advice.
All data sourced from Finviz.
Always conduct your own research and consult with a financial advisor before making investment decisions.
Past performance does not guarantee future results.
About SPCX
- Space Exploration Technologies Corp. provides satellite-based broadband services in the United States, Ireland, Canada, and internationally.
- The company's Connectivity segment operates a high-speed, low-latency broadband network powered by various Starlink satellites in low-earth orbit, delivering connectivity to various consumer, enterprise, and government customers through its Starlink offering.
- Its Space segment designs, manufactures, and launches reusable rockets to provide access to space.
- It offers launch services for the deployment of payloads to intended orbits for commercial and government customers utilizing Falcon 9 and Falcon Heavy; and launch and development for the development of spacecraft and the provision of launch and mission services for government agency space programs utilizing Falcon 9, Falcon Heavy, Starship, and Dragon.
- The company's AI segment operates a vertically integrated AI platform spanning a frontier LLM Grok; AI solutions for consumer and enterprise customers; X, a real-time information, entertainment, and free speech platform; and AI computational infrastructure.
- The company was founded in 2002 and is based in Starbase, Texas.