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Morgan Stanley's Adam Jonas says a successful Starship mid-air catch could boost SpaceX, but warns of debt issuance risk.
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SpaceX stock has rebounded 35% from its August lows following strong Q2 earnings with 92% revenue growth and major business expansions in Starlink and AI. However, the analyst advises against buying at current valuations, citing a P/S ratio of 68 (vs. S&P 500 average of 3.8), lack of profitability, and an upcoming December lockup expiration that could pressure the stock.
HSBC kept CoreWeave at Reduce with a $39 target, citing neocloud disadvantages, weaker demand, low estimates and debt risks.
Amazon released TorchNeuron, an open-source software tool that allows PyTorch code to run on AWS Trainium chips with minimal changes, challenging Nvidia's market dominance. Amazon stock surged 5% on the announcement. Meanwhile, Karooooo's shares fell 8% despite strong subscriber growth due to lower-than-expected earnings and unchanged guidance. Netflix and SpaceX are set to report earnings, with Netflix focusing on ad revenue growth and SpaceX on AI spending efficiency. MercadoLibre continues expanding in Latin America with heavy investments in shipping and payments.
Tesla's new Roadster with advanced features generates buzz but won't significantly impact revenue. While the company shows innovation, its P/E ratio of 352 is extremely expensive compared to the S&P 500's average of 24. Tesla faces margin pressures from price cuts and heavy R&D spending, with operating income down 57% in Q2. The stock is in limbo—valuation is too high for meaningful growth, but future projects like robotaxi services may sustain investor optimism for a few more years.
Tesla reports Q3 earnings Oct. 21; analysts expect EPS to fall to 45 cents and revenue near $28.11B. Roadster debuts with SpaceX thrusters.
Meta Platforms is set to report Q3 earnings on Oct. 21, marking the start of earnings season for the 'Magnificent Seven' tech companies. Investors are closely watching to see if massive AI infrastructure spending translates into revenue growth. Meta's capex-to-revenue ratio has reached 35% and could climb further, raising concerns about whether AI investments will justify the spending levels. Positive results from Meta could boost AI stocks and provide direction for the broader market.