Home / Business and Economy / Daniel Loeb Bets Big on SpaceX Amidst Portfolio Shakeup
Daniel Loeb Bets Big on SpaceX Amidst Portfolio Shakeup
23 Aug
Summary
- Daniel Loeb's Third Point fund has new positions in SpaceX, WBD, and TTMI.
- SpaceX's Q2 revenue surged 91.9% YoY to $7.81 billion, driven by Starlink.
- Despite recent gains, SpaceX stock faces pressure from post-IPO lockup expirations.
Hedge fund Third Point, managed by Daniel Loeb, has signaled a strategic pivot in its investment approach during the second quarter. The fund has divested from major tech players such as Meta Platforms and chip giants like Nvidia and Broadcom. In their place, Loeb has initiated new positions in Space Exploration Technologies (SpaceX), Warner Bros. Discovery, and TTM Technologies, indicating a potential move beyond established industry leaders.
SpaceX, a significant addition to the portfolio, has demonstrated impressive financial performance. In the second quarter, the company reported a substantial 91.9% year-over-year revenue increase, reaching $7.81 billion. This growth was predominantly fueled by its connectivity segment, which includes the Starlink satellite broadband network, generating $4.29 billion in revenue, up 65.8% year-over-year, attributed to robust subscriber expansion. Despite its recent surge and investor acclaim for its first post-IPO earnings report, SpaceX stock has faced selling pressure in the preceding five days due to lockup expirations, leading to a 3% decline from recent highs.
The company's forward-adjusted price-to-sales ratio stands at 97.79x, notably higher than the industry average of 2x, suggesting a premium valuation. Projections indicate a loss per share of $0.15 for the current fiscal year, with a significant improvement anticipated to an earnings per share of $1.62 in the following fiscal year. SpaceX is expected to report an earnings per share of $0.09 for the current quarter.
