SpaceX reported third-quarter revenue up 161% year on year to $14.6 billion and net income of $4.4 billion. Of that, $561 million was an unrealized gain on its stake in The Boring Company, a Musk-controlled firm, after the company raised $3 billion at a valuation of about $20 billion; the gain equals about 12.7% of net income but brought in no cash. The article argues that net income can overstate underlying performance and that operating income is the more useful measure, which came in at $2.8 billion versus a $273 million operating loss a year earlier. Capex reached $19.6 billion in the quarter, and CFO Bret Johnsen guided to $35–40 billion for the fourth quarter, mainly for AI infrastructure, Starship and satellites. SpaceX also agreed to acquire 800 MHz wireless spectrum from Grain Management, which could help Starlink expand into cellular connectivity.
Summary written by Upside AI from the original article. Read the source for full details.
Read the original on Yahoo Finance ↗
Keywords
SpaceXElon Muskearningstelecommunications
Open a keyword to see other news on the same topic.
Related news
- SpaceX Is Buying Airwaves to Take On the Wireless Carriers. Is the Stock a Buy?
On October 8, SpaceX agreed to buy Grain Management's nationwide 800 MHz spectrum portfolio to help its Starlink Mobile service reach phones indoors; terms were not disclosed, though The Wall Street Journal put the price at about $8 billion in cash. Shares of T-Mobile, Verizon and AT&T each fell over 10% the next day, while SpaceX stock barely moved and trades near $146, about 31% below its record $211.39 close on June 16. In the second quarter, SpaceX's connectivity segment, which houses Starlink, posted revenue of $4.3 billion, up 66% year over year, and was the only segment with an operating profit; the Grain purchase still needs FCC approval. At a valuation of about $2 trillion, the $8 billion is under 1% of that, but trailing four-quarter revenue of about $23 billion leaves the stock above 80 times sales, and the company lost $4.8 billion in the first half of 2026. The author considers the stock still too pricey, noting that revenue from direct phone service is probably more than a year away and that third-quarter results are due October 20.
- Is Elon Musk Coming for Verizon?
A Motley Fool Hidden Gems podcast discusses SpaceX's wireless ambitions after a reported spectrum acquisition sent Verizon stock down about 10%. One host says his current service was about eight times faster than SpaceX's $55 offering, and doubts many users would accept the slower speeds and higher latency of satellite connections. The guests note the spectrum suits terrestrial networks better than satellites, that building one could cost 10 billion or more, and that mobile carriers are valued at less than two times sales. With roughly 11,000 satellites in orbit and an estimated 40,000 users per newer satellite, Starlink could theoretically serve hundreds of millions, but speed and capital expenditure remain open questions.
- Elon Musk Says SpaceX Just Bought "the Last Critical Piece" Required to Take on the Wireless Giants. Here's Why It Will Need to Spend Billions More to Compete.
SpaceX has agreed to buy 14 MHz of paired spectrum licenses in the 800 MHz band from Grain Management for a reported $8 billion; these licenses were given up by T-Mobile in its Sprint merger. The spectrum suits long-distance coverage and building penetration, but its 14 MHz is less than one-third of Verizon's low-band holdings, so the article argues SpaceX would need much more spectrum and infrastructure to compete nationwide. The three major carriers recently formed a joint venture for satellite direct-to-device coverage, and their partnerships with SpaceX and AST SpaceMobile are noted. The article says the next FCC auction, scheduled for April, could raise prices for everyone and pressure the carriers' finances.
- Elon Musk's SpaceX could change how Americans buy iPhones
- The real reason Elon Musk is making a big bet on wireless broadband
SpaceX (SPCX) is moving into the telecom market, and the article says it throttled many wireless carriers including AT&T, T-Mobile and Verizon last week, leaving their shares slow to recover. The view that Starlink will quickly crush these carriers is unrealistic, since building a wireless network would likely cost hundreds of billions of dollars. Pivotal Research argues the deeper reason is that this push helps fund a private mesh network for Tesla's cyber cabs, robots and other devices, with each added fixed Starlink customer making that mesh denser. The host suggests Musk wants control over his own broadband capacity and must buy spectrum to support a future of millions of robots and cyber cabs.
- Why AT&T Stock Plunged on Friday
AT&T shares fell 8% on Friday after a Bloomberg report said SpaceX is in talks to access at least 80,000 cell sites across the U.S., raising fears of disruption to the wireless market. Starlink Mobile's monthly users rose 37% to more than 22 million, according to SpaceX's third-quarter earnings call, and the company recently acquired nationwide low-band spectrum licenses. The article notes that building a nationwide wireless carrier would be costly, likely reaching tens of billions of dollars, and would take time. Meanwhile, AT&T added 379,000 postpaid phone subscribers in the third quarter, revenue rose 5% to $32.3 billion, and full-year adjusted earnings guidance was raised to $2.40 per share. Free cash flow is expected to rise to over $21 billion in 2028, up from $18 billion this year.
Related markets
Latest news
- FTC and 20 states sue Dollar General, alleging retailer overcharged shoppers
The Federal Trade Commission and 20 states sued Dollar General, accusing it of charging customers more than the prices displayed on shelves, price tags and in advertisements. The complaint says thousands of stores extracted millions of dollars in unlawful overcharges and that the company received “tens of thousands” of consumer complaints without adopting policies to fix the problem. Dollar General shares fell about 4% after the announcement, and the company did not immediately respond to a request for comment. The suit comes as shoppers look for discounts amid elevated food and gas prices, ahead of next week’s midterm election.
- Is the Buffett Indicator Flashing a Warning Sign to Stock Market Investors?
The Buffett indicator, which divides the total value of U.S. stocks by GDP, stands at 234%, near its record high and well above the roughly 135% reached during the dot-com bubble. The CAPE ratio is 40.6, higher only in the dot-com period, while the S&P 500 has grown at an annualized pace of roughly 15% over the past 10 years, versus a historical average of 10%. The author argues the indicator ignores overseas revenue of large U.S. companies and the rapid expansion of liquidity, with M2 rising from $6.9 trillion to $23.3 trillion, so he does not see it as a clear warning sign. The author also says investors should not use it as a tool to time the market, since the S&P 500 has posted gains over every rolling 20-year period.
- Rockefeller Adds J.P. Morgan Team in Houston
Rockefeller Capital Management has added a seven-member Houston team from J.P. Morgan to its Global Family Office division, led by managing directors Chris Sheets and Forrest Green. According to a Forbes Best-in-State advisor ranking, the team previously managed $1.4 billion in assets and had been with Bernstein Private Wealth Management before joining J.P. Morgan in 2018. The move follows Rockefeller’s earlier-this-month addition of The Kellam Group, a Naples, Fla.-based team from Truist. Rockefeller oversees about $237 billion in client assets.
- Shopify “Has Not Grown Into Its Multiple at All” as Investors Pay 112 Times Profits
Shopify shares rose 33% in a month following Meta’s Muse deal, before ATB Cormark downgraded the stock to Sector Perform. On the We Study Billionaires podcast, Daniel Mahncke argued the rally came mainly from earnings roughly doubling, while the premium investors pay stayed at about 112x operating profits. Normalized EPS rose from $0.73 in 2023 to $1.43 in 2025, and the forward P/E of 80x is close to its 3-year average of 74x. Operating margin climbed from 3.7% to 16.4%, but subscription gross margin fell to 79.7% as cloud and AI costs rose $37 million. The article says the valuation depends on AI shopping agents keeping growth strong, with third-quarter results as the first test.
- Tokenized Stock Trading Has Been a Big Hit Overseas. So Why Are Some Publicly Traded Companies in America Objecting?
Robinhood has launched tokenized stock trading in over 120 countries this year but has not yet received U.S. approval. Tokenized stocks are blockchain tokens representing ownership of conventional shares that can be traded 24/7 across borders, yet holders lack voting rights and direct cash dividends because a custodian bank holds the underlying shares. Microsoft, Verizon and McDonald’s are among a growing list of large companies that have filed to bar tokenization of their shares, arguing platforms cannot issue synthetic versions without consent and that the practice compromises investor safety and corporate governance. In September, the SEC issued an “innovation exemption” letting qualifying platforms trade tokenized stocks in the U.S. for up to five years, but it requires equal rights for holders and gives companies 30 days to object. The article suggests Robinhood is unlikely to bring the feature to U.S. investors soon given nearly two dozen major objectors, though its overseas growth remains worth watching.
- Geopolitical tensions complicate the gold bull case, says AHG president
Max Baecker, president of American Hartford Gold, says Middle East tensions are complicating the gold outlook, even as central bank buying supports demand. He argues higher energy prices could fuel inflation and tighter monetary policy expectations, strengthening the dollar and weighing on gold, which is why gold does not always rise during a geopolitical crisis. He notes central bank buying has roughly doubled from its pre-2022 average, and the People's Bank of China has increased its gold reserves for 23 consecutive months, with Chinese net gold imports reportedly reaching 316 tonnes in the first quarter. In the near term, he says the Fed sets the pace of gold's moves rather than its direction.
Get the briefing on Telegram or Zalo
Join the Upside Telegram channel or Zalo group for the Vietnam stocks and gold briefing at 8:00 and 19:00 (Vietnam time) on trading days, plus a weekly wrap on Saturday morning.