Is This The Start Of A Massive Market Shift?
In a Nutshell
SpaceX's Q3 earnings showed $4.4B profit and 161% revenue growth to $14.6B, beating estimates, while Elon Musk projected recurring annual revenue of $500B–$1T by end of 2027, driving chip and AI stocks higher. Netflix fell 5.9% after strong results but weak Q4 guidance, trading at 52-week lows with a P/E under 21. Meta, Tesla, and IBM earnings tomorrow will determine if the AI rally continues or reverses.
These notes were generated by AI and may contain inaccuracies.
A big day for artificial intelligence. The Nasdaq index rises sharply during extended trading hours after closing in the red, but it has returned to a sharp rise again. Many know that most of this is funded by SpaceX. SpaceX announced better-than-expected profits, but what Elon Musk said caught the attention of many investors. SpaceX shares rose by approximately 6 to 7%. The expectation was that the market would celebrate a little more than that. There has been fear of artificial intelligence present in the atmosphere during the past week to the past week and a half, but at least for the time being, it has become less present. The hope is that this continues until tomorrow when Tesla, Meta and IBM announce their post-closing earnings.
Shares in the chip and memory industries surged after SpaceX posted a $4.4 billion profit in the third quarter. The companies mentioned are SpaceX, Intel, Sky, Nvidia, SanDisk, and Micron. The biggest focus is that SpaceX just announced a 161% jump in annual revenue in its latest third-quarter earnings report. Primarily driven by Starlink and artificial intelligence, revenues reached 14.6 billion, compared to expectations of 12.9 billion, representing a huge exceeding of expectations. Earnings per share came in much higher than expected, reaching 35 cents, up from 13 cents.
There is positive sentiment regarding Starlink's transformation into a major US mobile operator, a direct competitor to telecom giants such as Verizon, AT&T, and other companies. The news wasn't just good for SpaceX and some AI companies; there has been a lot of fear recently regarding NBIS, Korweef, and Irene. These companies were badly injured and technically are in the peak selling zone. The fear that used to haunt emerging cloud computing companies has begun to fade somewhat. The return of cloud computing companies has begun, with CorWave rising 7% and NBIS rising another 6%. Another 4% increase occurred during after-hours trading, with Coreweave up another 4%.
Using Investing Pro software to review profits shows a big surprise with a 169% increase in earnings per share and a 13% increase in total revenue. The big message that Elon Musk shared today, which shocked many investors, may be an exaggerated promise. Elon Musk is known for that. Elon Musk says SpaceX's annual revenue, recurring revenue, could range from $500 billion to $1 trillion by the end of next year, 2027.
Netflix has taken some tough hits. When looking at Netflix, it is at its lowest levels in 52 weeks without interruption since the 2025 peaks, showing lower peaks and lower troughs. Netflix announced fantastic profits and outperformed in revenue and earnings per share, but their guidance for the fourth quarter was slightly lower than expected. Suddenly, the markets no longer liked the stock. The markets criticize some companies harshly and do not criticize others.
Netflix could be a valuable investment opportunity or it could be considered a big name but a dead arrow. Lower peaks, lower troughs show trading at one of the lowest levels reached in a long time, down an additional 5.9%. The price-to-earnings ratio is less than 21, which is not as exciting as a company like SpaceX, but SpaceX is still in its early stages of becoming fully profitable with an insanely negative price-to-earnings ratio.
Meta, Tesla and IBM are scheduled to announce their earnings tomorrow. The advice is to not overdo the celebration today and then regret it later tomorrow. The short position in the Micron deal has been completely closed. The position was opened as a sales center, added more to it, and then profits were made just before closing with $2500 and the center completely closed. It appears to be building and retesting the same resistance range. The decision was made not to hold a sales position overnight, although it looks attractive at these levels.
The big focus is the scheduled earnings announcement tomorrow for Meta, Microsoft, Tesla, and IBM. Live trading session will be available through the second link in the description, going live when the market opens. The goal is to end the year on a positive note.
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