Revenue from artificial intelligence (AI) grew by 247%, while Starlink revenue rose by 66%, reaching over 12 million subscribers. Starlink remained the main profit driver, generating $4.29 billion in revenue and $1.66 billion in operating income. Space launch brought in $962 million in revenue but recorded an operating loss of $542 million, mainly because of massive Starship development and launch costs. What really drove the post-earnings sell-off wasn’t revenue performance, but the massive capital expenditures tied to rocket development and hardware infrastructure scaling. Given the impending lock-up expiration and continued high capital expenditure on AI, near-term stock volatility remains likely, irrespective of the underlying business strength.