SpaceX Surges on Q3 Revenue and Tesla Merger Talks

SpaceX Surges on Third-Quarter Revenue While Weighing Tesla Merger Plans

SpaceX shares surged 11.1% after the rocket and artificial-intelligence company reported stronger-than-expected third-quarter revenue. The company posted a 161% jump in revenue to $14.58 billion, driven by strong performance in its AI business. Alongside the financial results, Elon Musk announced that SpaceX and Tesla have formed special committees to discuss a potential merger, a move that would unite Musk’s largest businesses in the biggest-ever deal.

The developments at SpaceX provided a significant lift to broader equity markets, boosting the Nasdaq composite and pulling chip stocks higher. Nvidia shares advanced following bullish commentary from CEO Jensen Huang during a keynote in Berlin. However, the artificial-intelligence rally faced pushback from hedge-fund billionaire Ken Griffin, who warned that “almost certainly bubbles” exist within the current market surge.

Global Markets Respond to Tech Momentum and European Fiscal Pressures

International stock markets reacted unevenly to the U.S. tech momentum and mounting European fiscal concerns. South Korea’s Kospi jumped 3.3% in one of the world’s biggest moves as artificial-intelligence-linked stocks regained strength. Tech investment giant SoftBank Group also climbed 4.70%, with tech analyst Dan Ives of Yorkville Ives stating that the SpaceX quarter and neocloud indications are very bullish globally.

In Europe, indexes climbed following a mixed finish in Asia, though regional pressures weighed on specific sectors. French benchmark bond yields crossed 5% for the first time in 24 years as investors worried about the country's fiscal and political woes. The unrest in France also impacted retail giant Carrefour, which saw its shares plunge 10%, while Adidas revised its full-year operating profit up to 2.5 billion euros after reporting a gross margin boost from U.S. tariff refunds.

Corporate Earnings Diverge Across the S&P 500

U.S. equity averages drifted as strong profit reports from companies like SpaceX and Capital One Financial contended with disappointing updates from Netflix and AT&T. Netflix shares fell 4.2% despite reporting a stronger profit for the summer, as investors focused on fears that Netflix’s momentum may be slowing. Winnebago Industries climbed 7.2% after reporting a resilient profit that topped analyst expectations, though CEO Michael Happe noted that expensive towable recreational vehicles remain a tougher sell for cautious shoppers. United Airlines shares rose more than 4% despite the carrier providing a weaker-than-expected fourth-quarter profit outlook due to surging fuel costs, even as it reported a record revenue of $17.9 billion.

More on this story: SpaceX Q3: AI unit reaches profitability, revenue beats estimates · Elon Musk Confirms Tesla and SpaceX Form Committees to Explore Merger

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