Stockwatch
HedgeWeekly Stockwatch: SpaceX jumps after results as Netflix slides on soft guidance
SpaceX, Netflix, Tesla, Adidas and NextDC are the shares in focus before Wednesday's US open.
HedgeWeekly Markets Desk ·
SPCX, SpaceX: Q3 revenue rose 161% to $14.6 billion against $12.87 billion expected, adjusted EPS was $0.35 versus $0.15, and Elon Musk said SpaceX and Tesla have set up committees to explore a merger; shares rose 7.3% after hours. Bull case: supporters point to the $7.6 billion Super Intelligence compute segment, boosted by Anthropic and Google deals. Bear case: $19.6 billion of quarterly capex dwarfed $2.8 billion operating income, and merger talks are only exploratory.
NFLX, Netflix: Q3 EPS of $0.87 beat $0.82 estimates, but Q4 revenue guidance of $13.4 billion missed $13.51 billion and the 2026 ad revenue forecast fell to about $2.7 billion from $3 billion; shares were down about 6% premarket. Bull case: supporters note the profit beat and, per Quilter Cheviot, its streaming leadership. Bear case: critics flag a slower ad rollout, at least 14 price-target cuts and a premium valuation.
TSLA, Tesla: In focus after Elon Musk said Tesla and SpaceX formed special independent committees to explore a possible merger; Tesla reports Q3 results after today's close. Bull case: supporters see a combination with fast-growing SpaceX as a new growth story. Bear case: no terms, timeline or valuation have been given.
ADS, Adidas: Shares rose 3.3% in early Frankfurt trade after Adidas raised its 2026 operating profit target to €2.5 billion from €2.3 billion, helped by a €200 million US tariff refund. Bull case: J.P. Morgan said underlying operating profit beat expectations by 9%. Bear case: part of the lift is one-off, and Samba and Gazelle demand is fading.
NXT, NextDC: Shares fell about 44% in Sydney after grid upgrade delays at its Melbourne M3 site pushed about A$140 million of contracted revenue out of this year; it cut its 2027 outlook and paused new developments. Bull case: RBC notes the delays are outside the company's control and AI demand remains strong. Bear case: sharply lower guidance and community opposition threaten delivery timing.