Stocks rallied modestly yesterday, and they’re up again in the early going today. Crude oil is slightly higher, gold and silver are mixed, and Treasuries and the dollar are flat.
Tes-laX Space-la? No word on what the company might be called, but a potential merger of SpaceX (SPCX) and Tesla Inc. (TSLA) is on the table, according to Elon Musk. As CEO of both companies, he said it would be a “good idea” – but that he has to leave the decision up to special committees created by the boards of directors for each firm. With SpaceX valued at approximately $2 trillion, and Tesla worth $1.5 trillion, a combination would easily be the largest corporate merger in history.
SPCX (Red), TSLA (Blue) – 3-Mo. % Change
Source: TradingView
The comments came during the conference call following the release of SpaceX’s earnings. The firm reported $4.4 billion in third-quarter net income, blowing away estimates for $1.8 billion in profit. Sales surged 161% year-over-year, fueled by rapid gains in the firm’s AI division. SpaceX stock is up 21.4% in the last three months, while Tesla stock is down 0.2%.
Elsewhere in the tech arena, Anthropic is reportedly generating breakneck revenue growth – but racking up losses in the process. The Claude developer generated $16.3 billion in revenue in the six months ended June 30, compared with only $1.1 billion a year earlier. Computing capacity spend surged to $9 billion from $2.3 billion, though, while its net loss ballooned to $80 billion from $13 billion.
In fairness, a large chunk of the loss stemmed from accounting issues, according to the Wall Street Journal. The newspaper got its information from Anthropic’s S-1, a regulatory filing companies make ahead of an Initial Public Offering. The timing of Anthropic’s IPO isn’t certain, but the firm reportedly wants to get it done before 2026 wraps up.
Finally, streaming giant Netflix Inc. (NFLX) is losing ground in the wake of its third-quarter earnings report. While Q3 earnings per share came in five cents ahead of estimates, the company forecast Q4 revenue of $13.4 billion, disappointing investors. Netflix recently cut 6% of its workforce amid greater competition and questions over viewer engagement. Netflix stock is down 26.7% year-to-date.