Recent tech earnings have pushed the AI trade into a sharp downturn.
Summary written by Upside AI from the original article. Read the source for full details.
Read the original on Yahoo Finance ↗
Keywords
SpaceXIPOElon Muskartificial intelligencetech stocks
Open a keyword to see other news on the same topic.
Related tickers and likely impact
QQQ
▼ Likely negativeInvesco QQQ Trust
Relevance: medium
| Market | US stocks |
|---|---|
| Sector | ETF |
| Close on 10/30/2026 | 690.49 |
| Change that session | -3.47% |
SPY
▼ Likely negativeSPDR S&P 500 ETF
Relevance: low
| Market | US stocks |
|---|---|
| Sector | ETF |
| Close on 10/30/2026 | 755.71 |
| Change that session | -1.77% |
Impact is scored by AI from the headline and may be wrong. It is not investment advice.
Related news
- We're adding a new, high-profile AI play to our Bullpen stocks to watch list
The article proposes adding SpaceX, founded by Elon Musk in 2002, to the Bullpen stocks-to-watch list. The company went public in June at $135 per share, opened at $150, peaked near $226, fell to about $105 in early August, and rebounded to the $140s. Its S-1 filing estimates a total addressable market of $28.5 trillion: $370 billion for Space, $1.6 trillion for Connectivity and $26.5 trillion for SI, formerly called AI. SI is the fastest-growing segment, with third-quarter revenue of $7.56 billion, up from $2.56 billion in the second quarter and $813 million a year earlier, while Anthropic's S-1 shows it has agreed to spend up to $120.5 billion on SpaceX compute over coming years. Starlink, the most profitable segment with $2.37 billion in third-quarter operating profit, added 1.6 million consumer subscribers, bringing its global base to just under 14 million, and SpaceX is expected to earn 32 cents per share in calendar 2026.
- Why Anthropic's IPO contrasts the 'cult of Elon Musk' at SpaceX and Tesla
The SpaceX (SPCX) prospectus singles out Elon Musk as the key decision-maker, while Anthropic (ANTH.PVT), which could be the largest IPO ever, is run by a group of co-founders. Veteran dealmaker Jim Neeson of the Connor Group argues that this structure can avoid dependence on one person, though the founding group will hold majority control through new Class F stock and collectively own 50.1%. Anthropic's first-half 2026 revenue rose to $16.3 billion from $1.1 billion a year earlier, but the filing shows an $80.7 billion net loss driven by heavy AI spending. On an adjusted basis, it posted $1.62 billion in operating income over the first six months of 2026, versus a $1.85 billion loss a year earlier. Investment bankers reportedly target a listing valuation of $1.5 trillion to $2 trillion, with a debut possible before the end of November on Nasdaq under the ticker ANT.
- Elon Musk Just Delivered Spectacular News for SpaceX Stock Investors
SpaceX (SPCX) shares have fallen 29% from a peak of $225 after their June listing, to $159.31 at the close on Oct. 21, with a trailing P/S of 67.5 versus 6.7 for the Nasdaq-100. Musk believes the super intelligence (SI) business could lift annualized revenue to between $500 billion and $1 trillion by the end of 2027, compared with $32 billion generated over the last four quarters. This relies partly on a 440,000-GPU Nvidia Vera Rubin cluster Musk wants online by mid-2027, and on the Grok Bot agent, which is still in beta. The article notes that if SpaceX reaches $500 billion in annualized revenue, its forward P/S could fall to 4.3 within about 15 months, while Wall Street's average forecast is $167 billion in revenue next year. Starlink had 13.6 million paying subscribers at the end of Q3, up 89% year over year.
- A Big Shift Just Happened at SpaceX. Is It Time to Buy?
SpaceX listed in June at a valuation above $2 trillion, raising $85 billion after exercising an overallotment option in what the article describes as the world's biggest IPO; its stock has since fluctuated and was heading for an 8% decline on the day. In the latest quarter, SI (its AI unit) revenue jumped 829% to $7.5 billion, ahead of Starlink's 69% rise to $5.2 billion, though Starlink still led operating income at $2.3 billion versus $431 million for SI. SI moved from an operating loss of more than $1 billion a year earlier to operating income, while its capital spending in the quarter topped $16 billion. Elon Musk predicted annual recurring revenue of $500 billion to $1 trillion by the end of next year. The author suggests aggressive investors may consider buying a few shares on the dip, while most investors may wish to watch more earnings reports on capex and revenue growth first.
- Is SpaceX Stock a Buy After Its Latest Earnings Report?
SpaceX posted third-quarter results on Oct. 20, with revenue up 161% year over year to $14.6 billion, beating estimates by $1.6 billion, and EPS of $0.35 beating consensus by $0.19 versus a loss of $0.36 per share a year earlier. Starlink generated 47% of revenue in the first nine months of 2026 and is the only profitable segment on a GAAP basis, while the SI (40%) and space (12%) segments remain unprofitable. Analysts expect 2027 revenue of $177.6 billion and net income of $51.8 billion, or $3.87 per share. At $150, the stock trades 11% above its $135 IPO price and at 38 times next year's earnings. The author would not go all-in at these levels but would consider a small starter position, while Elon Musk claims annual revenue could surpass $1 trillion by 2030.
- SpaceX Kicks Off Yet Another Potential Fleecing of Retail Investors Today, Oct. 26
SpaceX (SPCX) completed its June 12 IPO, raising $85.7 billion including the underwriters' overallotment and valuing the company at $1.77 trillion, both record figures. According to the article, the prospectus allows some insiders to sell shares early at earnings- and time-based events through mid-December, while CEO Musk is not among them. After each quarterly report, up to 911.5 million shares became eligible for sale, including after the Q3 results released Oct. 20 that took effect on Oct. 22. Because calendar day 135 fell on a weekend, another 319 million shares were released today, Oct. 26. The author argues that with only about 555.6 million shares sold in the IPO, under 5% of outstanding shares, and a rising float, value could shift from retail investors to insiders, though the article notes insider selling is not confirmed.
Related markets
Latest news
- Why gold plunged to its lowest price in a year despite renewed Iran jitters
Safe-haven gold fell to its lowest price in a year. The drop came despite renewed jitters over possible fresh Middle East attacks after the U.S. midterm elections on Tuesday.
- These 3 Big Risks Could Cause the Next Bear Market. I'm Investing Anyway.
The article argues that stocks always carry risk, pointing to the 2022 bear market when the S&P 500 fell about 18% and the Nasdaq-100 about 32% on a total return basis. The author outlines three risks: heavy reliance on AI, as Goldman Sachs research from September found the largest AI hyperscalers had spent about $800 billion in capital expenditures since the start of the year; rising rates, as the Fed hiked in September and the 10-year Treasury yield has risen about 0.92% over the past year; and high valuations, with the CAPE ratio at levels not seen since 2000, just before the dot-com crash. Even so, the author says they will keep investing and buying more stocks through low-cost index funds, noting the S&P 500 has averaged 9.98% annual returns since 1928 and the Vanguard S&P 500 ETF (VOO) about 13.8% a year over the past five years, including 2022.
- Stock Market Today, Oct. 30: Intel Plunges Nearly 29% as Weak Outlook Rattles Wall Street
Intel shares plunged 28.58% to close at $65.76, one of the steepest single-day declines in decades, despite the company beating quarterly earnings expectations. Investors reacted to weak fourth-quarter guidance citing softer PC demand, manufacturing constraints and ongoing turnaround spending. Trading volume reached 447.8 million shares, about 314% above the three-month average of 108.1 million. Intel’s Data Center and AI revenue rose 78% year over year to $7.3 billion, suggesting demand for data center infrastructure remains robust. AMD fell 10.88% to $504.80 and Nvidia dropped 4.22% to $204.64, while the Nasdaq Composite closed at 25,437, down 2.86%.
- Cracks are emerging in the AI spending boom
Investors are growing nervous about AI infrastructure spending, even as Alphabet, Amazon, Meta and Microsoft plan to spend more than $740 billion on capital expenditures this year. The Nasdaq fell 2.9% on Friday, with chip stocks hit hard and Qualcomm down 11%. Alphabet plunged 12% on Thursday, wiping out $500 billion in market value, and reported negative free cash flow of $9.1 billion in the third quarter while expecting to spend up to $205 billion this year, as its Search advertising growth slowed to 12% amid the rollout of AI Mode. Amazon posted negative free cash flow of $42.4 billion over the past 12 months despite 39% AWS growth, and Meta reported negative free cash flow of $2.1 billion in the third quarter even as ad revenue rose 26%. Negative cash flow, mounting debt and doubts about whether these investments will pay off are weighing on market sentiment.
- Binance Hack Shows Why Offshore Exchanges Need US Oversight, CFTC Chair Says
CFTC Chairman Michael Selig told CNBC that the $6.4 billion Binance hack “proves our exact point” for the crypto-market rules the agency proposed this month, arguing offshore exchanges need U.S. oversight. He attributed the flaw to a vulnerability “introduced from someone’s laptop” rather than to Ethereum or its smart contracts, and proposed a “federal option” letting such venues register with the CFTC and meet U.S. cybersecurity standards. Binance, however, said its investigation had found “additional points of breach,” and that the attacker used EIP-7702 to turn a hot wallet into a “sweeper” with 50 pre-signed authorizations. Binance has set aside $6.34 billion to cover losses, while the Secret Service and FBI are investigating, and TRM Labs and Chainalysis have linked the theft to North Korea’s TraderTraitor group.
- Anthropic turns profitable but could go back into losses: Seaport analyst
Seaport Research Partners analyst Jay Goldberg views Anthropic's operating profit of almost $1 billion as likely temporary. He said the company has warned it may be profitable in the next quarter or two before returning to losses, as it shifts from leasing computing capacity by the hour from Amazon to building its own compute, which it considers a key competitive advantage and will spend heavily on. Goldberg described the relationship with Amazon (AMZN) and Google (GOOG, GOOGL) as complex, since Anthropic is both a major customer, with a large share of Amazon's AI revenue coming from it, and a potential competitor. He does not think conclusions about Anthropic can be drawn from this week's tech market moves, citing interest rates and an ongoing war. Anthropic's computing bill is falling quickly, which is good news for now, but that is expected to reverse as it starts buying its own compute.
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.