SpaceX announced a net profit of $4.4 billion for the July-September quarter, exceeding analyst expectations by more than double. This news, shared after the close of trading on Tuesday, contributed to a rise in stock markets, especially within the technology sector. SpaceX's shares surged by 9.5 percent at the start of trading in New York, while the Nasdaq Composite index increased by 0.6 percent.
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The company, which went public following a record initial public offering in June, reported revenues that climbed 161 percent to $14.6 billion, up from a loss of $1.1 billion in the same period last year. Market analyst Patrick O'Hare from Briefing.com noted that SpaceX's impressive earnings and forecasts offered reassurance to investors, particularly regarding its potential to monetize its AI computing resources.
The positive news for SpaceX came as a relief to investors in companies like CoreWeave and Nebius, which had faced challenges due to high interest rates affecting their business models. Additionally, Super Micro Computer reported better-than-expected preliminary quarterly earnings, further enhancing investor sentiment and alleviating concerns related to the AI sector.
KCM Trade analyst Tim Waterer remarked that clear earnings improvements and positive corporate updates are helping to mitigate recent anxieties surrounding AI developments. The market will be closely watching the financial results from Tesla and Meta, which are set to be released later Wednesday, as strong performances from these companies could invigorate interest in the AI boom.
In other markets, the stock price of tech infrastructure firm Elice soared nearly 30 percent following a poor debut. The Paris stock market was up one percent amid notable fluctuations in individual stocks, with EssilorLuxottica rising over 14 percent after reporting a significant increase in sales of lenses aimed at slowing myopia in children.