$SPCX and $NFLX results in one place👇
We’re in for both rising📈 and falling stock prices📉, so let’s start with the more positive news:
AI overtakes Starlink — SpaceX’s first profitable quarter since its IPO
- Revenue: $14,58 billion, up 161% year over year.
- Operating income: $2,8 billion.
- Net income: $4,4 billion (the company reported a loss of $1,05 billion a year ago).
- Adjusted EBITDA grew faster than revenue again, reaching $8,8 billion (+306%).
What’s driving the business: the Super Intelligence segment (formerly AI).
It includes computing capacity leased to Anthropic, Google $GOOG, Grok and X, and generated $7,56 billion versus the expected $6,47 billion.
The acquisition of Cursor contributed $608 million in revenue to the company since August.
Connectivity: revenue, mostly from Starlink, rose 69% to $5,25 billion, and the segment’s operating income nearly doubled to $2,37 billion.
Starlink has 13,6 million subscribers (up from 12 million), and ARPU rose to $69 from $66.
Starlink Mobile has 22 million monthly users. That’s a 37% increase quarter over quarter.
The rocket business grew only slightly, from $1,67 billion to $1,77 billion.
What’s on the edge and needs to be watched closely:
Capex for Q3 was $19,6 billion, and the company plans $35–40 billion for Q4. It reaffirmed its target of $100 billion in annualized revenue.
Backlog rose to $63 billion (it was $47,5 billion in Q2).
The stock is up nearly 10% after the results.
OH, and before I forget, Musk said Tesla and SpaceX have formed special committees to discuss a merger. So what the market had anticipated is very likely to happen after all: the two companies will merge.
Netflix $NFLX: solid quarter, but weaker outlook and another slump
- Revenue of $12,87 billion was in line with estimates.
- EPS of $0,87 beat expectations of $0,82.
- Operating income reached $4,5 billion (+37%).
- Operating margin was 34,6% versus 28,2% a year ago — EPS rose 49%.
- Churn (account cancellations) improved year over year globally and in the US, and was better than the company expected.
The problem is the outlook
Netflix lowered its advertising revenue estimate for 2026 to around $2,7 billion from the original $3 billion. The market doesn’t like that, because advertising has been a growth driver in recent years.
Its Q4 revenue outlook is $13,44 billion, below the $13,51 billion consensus.
Margin is expected to be 26%. Oh, and last week the company cut about 6% of its workforce, or around 1 000 positions, due to slowing growth and weaker viewer engagement.
Content chief Bela Bajaria also had to leave. On top of that, management acknowledged investors’ concerns about audience growth.
The stock fell 5,93% after the close. Netflix is down more than 40% over the past 12 months.