Mega-IPOs could signal market top, say analysts as SpaceX and OpenAI prep record floats
Analysts are expressing concerns that upcoming mega-IPOs, such as those from SpaceX and OpenAI, could indicate a peak in the market. SpaceX reported significant losses in its latest quarter, with its AI unit particularly struggling, raising questions about its future profitability. OpenAI, also preparing for an IPO, faces similar scrutiny regarding its financial viability and the potential impact on the stock market.
- ▪SpaceX recorded a net loss of $4.28 billion in the latest quarter, following a loss of $4.94 billion in 2025.
- ▪Its Starlink division generated $3.26 billion in revenue, making it the only profitable segment of the company.
- ▪Analysts warn that if companies like OpenAI cannot achieve profitability, it could lead to a broader market downturn.
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SpaceX recorded a net loss in the latest quarter of $4.28 billion after losing $4.94 billion in 2025.Its Starlink arm generated $3.26 billion in revenue in the latest quarter, accounting for 69% of the total. Its space business lost $619 million on an operating basis, while its AI unit lost $2.5 billion — meaning connectivity is the only profitable part of the company. Crucially, SpaceX wrote in its S-1 filing on Thursday that it has "a history of net losses and may not achieve profitability in the future."Much of its value relies on success in developing various technologies that are "novel and untested", and SpaceX expects to "incur significant capital expenditures over a period of years" before its AI products and services become profitable, according to the document.Dan Coatsworth,…
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