SpaceX shares surged 6% after reporting doubled Q3 revenue and its first profitable quarter. CEO Elon Musk detailed discussions on a potential merger with Tesla, while broader markets remained mixed on earnings news.
SpaceX shares rose 6% on Tuesday following the release of its third-quarter earnings, which revealed that revenue more than doubled year-over-year. According to The Wall Street Journal, the company reported net income of $4.4 billion, marking its first profitable quarter since becoming a public company in June. The growth was largely driven by its AI segment, though the firm also saw significant expansion in its space and connectivity divisions.
During the earnings call, CEO Elon Musk provided detailed insights into a potential merger between SpaceX and Tesla. Musk stated that both companies have formed special committees to discuss the idea, noting that while no agreement has been reached, he believes there is "a lot of merit in combining the companies." This disclosure added to the momentum behind SpaceX’s stock performance, which helped lift broader market sentiment in after-hours trading.
While SpaceX’s results were strong, other marquee names presented mixed signals. Netflix shares slipped in overnight trading after the streaming giant indicated that revenue growth had slowed, a factor that weighed on investor confidence. In contrast, 3M stock closed nearly 6% higher after beating Wall Street estimates and raising its full-year outlook. GE Aerospace also featured prominently in the earnings narrative, contributing to the day's market activity.
On the broader market front, the three major U.S. indexes finished Tuesday with mixed results. The Dow Jones Industrial Average added more than 500 points, closing up over 1%, while the S&P 500 climbed 0.28%. The Nasdaq Composite ended the session slightly lower, down 0.02%. Investors are now turning their attention to upcoming earnings from Meta, Tesla, IBM, and AT&T, which are slated to report results on Wednesday.
Market drivers also included geopolitical developments, with stocks receiving a boost from unverified reports that mediators had presented a proposal to revive diplomatic talks between the U.S. and Iran. Additionally, Brent crude prices fell back below $109 per barrel. In Asian markets, caution persisted around AI stocks, with shares in data-center startup Elice dropping over 30% on their trading debut in Seoul.