SpaceX’s AI Spending Overshadows Strong Earnings

by News Editor

August 5, 2026

SpaceX shares fell after the company’s first earnings report as a public company, as investors focused on soaring AI-related spending despite stronger-than-expected revenue growth and an optimistic long-term outlook.

Revenue increased 92% year over year during the second quarter, but capital expenditure climbed to $18.4 billion, significantly exceeding analysts’ expectations. Most of that investment was directed toward expanding the company’s artificial intelligence infrastructure.

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Betting Big On AI

SpaceX is rapidly building AI computing capacity as it seeks to compete in the fast-growing market for cloud-based AI services. The company says those investments are already generating demand through agreements with customers including Google, Anthropic and Reflection AI.

Chief Financial Officer Bret Johnsen told investors that AI infrastructure is expected to pay for itself in less than a year, arguing that the company’s capital spending should be viewed as a driver of future revenue rather than a short-term cost.

Investors Remain Cautious

Despite those assurances, investors reacted negatively to the scale of spending, sending the stock lower after the results were released.

The earnings report comes as technology companies continue investing heavily in AI infrastructure, with firms including Microsoft, Amazon, Alphabet and Meta collectively committing hundreds of billions of dollars to data centres and computing capacity.

Long-Term Growth Strategy

SpaceX expects its AI business to become a major source of future revenue as it expands computing capacity and secures additional cloud contracts.

At the same time, the company faces increasing competition in AI infrastructure, while legal challenges related to one of its data centre projects add another layer of uncertainty as it scales its operations.

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Shein Targets $25 Billion Valuation In Hong Kong IPO As Growth Slows

by News Editor

August 17, 2026

Shein is reportedly targeting a valuation of around $25 billion in its planned Hong Kong IPO, a sharp decline from the nearly $100 billion valuation the online fashion retailer achieved in a 2022 fundraising round.

Two people familiar with the plans said the company was likely to target about $25 billion, while another source put the expected range at $25 billion to $28 billion based on the proposed price band.

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IPO Valuation Falls Sharply

Shein plans to sell up to 8% of its shares in the offering, according to a person familiar with the plans. At a $25 billion valuation, that would translate into an IPO of as much as $2 billion.

The latest target is also below the $30 billion to $40 billion valuation the company was seeking earlier this month as it began meeting with potential investors.

Founded in China in 2012 and now headquartered in Singapore, Shein sells low-cost clothing to consumers in about 160 countries. The company is expected to launch its long-awaited Hong Kong IPO later this week.

Trade Restrictions Weigh On Growth

Shein’s valuation has come under pressure as major markets tighten rules affecting low-cost e-commerce shipments. The European Union, for example, has moved to impose additional fees on cheap parcels from platforms such as Shein and Temu. EU Tightens Rules On Low-Cost E-Commerce Parcels

In the U.S., the removal of an import duty exemption for small packages has also affected the company. Shein reported a $99 million quarterly loss in the first quarter of 2026 as sales growth slowed, while a one-time accounting charge further weighed on its results. Shein Reports First-Quarter Loss Ahead Of IPO

Investors Question Shein’s Growth Prospects

The steep reduction in valuation reflects growing concerns over slower growth, higher trade costs, regulatory pressure and stronger competition across global e-commerce.

Some investors who reviewed Shein’s recent financial statements or attended IPO presentations told Reuters they were skeptical that the company could return to the growth rates that supported its $98.2 billion valuation in 2022. Shein’s Slowing Growth Tests Investor Appetite

A lower IPO valuation could also affect Shein’s existing investors. Under the terms of its IPO filing, the company may have to issue additional shares to certain pre-IPO investors if its valuation falls below agreed thresholds.

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