Space Exploration Technologies Corp.
(NASDAQ:SPCX) has captured investors' attention with its artificial intelligence ambitions and Starship development program.
But the company's latest earnings suggest a different business is doing much of the financial heavy lifting.
During the second quarter, SpaceX's Connectivity division—which includes Starlink's consumer broadband service as well as enterprise, government and Starshield offerings—generated enough operating profit to offset more than 92% of the combined operating losses from the company's Space and AI businesses.
SpaceX Q2 Earnings Release In other words, while rockets and AI may represent SpaceX's long-term growth story, it is Starlink and the broader Connectivity business that are currently helping pay for those investments.
