Lates News

SpaceX (SPCX.O) reported third-quarter net profit of $4.4 billion, far exceeding market expectations of $1.88 billion, with revenue up 161% year over year, driving its share price up as much as 12.4% intraday on Wednesday. However, the company said it will continue to invest heavily, sparking market concerns about a future expansion in debt issuance. The spread on SpaceX's bonds maturing in 2046 with a 6.6% coupon widened by 9 basis points to 264 basis points; the price of five-year credit default swaps (CDS) rose to as high as 232.6 basis points at one point, hitting multiple highs this month. SpaceX Chief Financial Officer Bret Johnsen said the company will focus investment on computing power for its superintelligence division and on its Starlink broadband and mobile businesses, and is in talks with multiple sources of debt capital for financing. The company issued $25 billion in bonds in June, and it was previously reported that SpaceX is in talks to raise $40 billion to purchase Nvidia chips. Johnsen said the company plans to maintain an investment-grade credit rating.