SpaceX (SPCX) is well positioned in a downturn, with Starlink generating recurring subscription revenue and growing rapidly. In the third quarter, revenue rose 161% year over year to $14.6 billion and net income reached $4.4 billion. Connectivity revenue grew 69% to $5.2 billion and Starlink subscribers reached 13.6 million, but average monthly revenue per subscriber fell from $83 to $69. Capex was $19.6 billion in the quarter, including $16.4 billion on AI infrastructure, more than its connectivity revenue, and the company ended the quarter with $90 billion in cash and securities. The article warns the business could keep growing while the stock falls, given a price-to-sales ratio of 64.
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