SpaceX stock jumps 10% after earnings beat and Musk hints at Tesla tie-up
Summary
SpaceX shares rose in premarket trading following a strong third-quarter revenue report. In addition, the company's owner suggested that a future combination with Tesla could be possible.
SpaceX shares jumped after the company reported surging revenue growth in its third quarter, and owner Elon Musk floated a potential SpaceX-Tesla merger.
Our Take
This was not a Starlink quarter, it was an AI quarter. SpaceX's "Super Intelligence" segment brought in $7.56 billion, almost three times last quarter and now bigger than Starlink's $5.25 billion. Total revenue of $14.6 billion beat the $12.86 billion estimate, adjusted EPS of $0.35 more than doubled the $0.15 consensus, and the company posted its first operating profit as a public company ($2.79 billion). Add Musk's talk of a possible Tesla merger, with both boards forming independent committees, and you have a stock gapping up about 7% pre-market.
The catch: capex hit $19.6 billion in one quarter, Starlink subscriber adds missed (1.6 million vs. 2.29 million expected), and there was no full-year guidance. The beat is real, but this is still a cash-hungry story, and merger headlines can cut both ways.
For day traders, this is a classic earnings gap on heavy volume. The first 15-30 minutes decide it: if SPCX holds above the pre-market low and reclaims the pre-market high, the gap can run. If it loses the open, expect a fade back toward yesterday's range.
Levels we are watching (Webull data):
- Pre-market: about $158.70, high $163.97, low $157.77.
- Resistance: $163-164 (pre-market high and the Oct. 12 close of $163.42), then $167 (Oct. 12 high).
- Support: $156 (Oct. 13 low), then $151-152 (Oct. 14 close). A full gap fill would bring back yesterday's $148.66 high.
Not financial advice. Do your own research.
Opinion of Tech & Money Press. Not financial advice.
Source: Read the full story at US Top News and Analysis