👉 SpaceX's Revenue Jumped +161%

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Meta reported another massive quarter.

Family of Apps revenue increased 26% to $64.2 billion, with advertising revenue climbing 26% to $63.1 billion. Ad impressions increased 10% while average price per ad grew 14%, demonstrating strength across both engagement and monetization. Daily active people across Meta's apps reached 3.64 billion, while other Family of Apps revenue grew 59% to $1.1 billion behind WhatsApp paid messaging and subscriptions.

Management highlighted increasingly tangible returns from its AI investments inside the advertising business. Meta's new Generative Recommender drove nearly a 2% increase in conversions across targeted Facebook Feed segments, while improvements to its GEM ad-ranking model increased app-ad conversions by nearly 10%. Meta AI engagement per person has also more than doubled since April, while Facebook and Instagram reached all-time highs in engagement driven by continued video growth.

Reality Labs revenue declined 6% to $443.0 million as weaker Quest headset sales offset continued growth in AI glasses, while its operating loss improved slightly to $4.13 billion. Management is increasingly repositioning Reality Labs around personal AI and now expects full-year 2026 losses between $18.0 billion and $19.0 billion before declining to roughly $15.0 billion in 2027 as investment shifts toward higher-priority AI initiatives.

Looking ahead, management expects fourth-quarter revenue between $73.0 billion and $76.0 billion. Meta narrowed its full-year capital expenditure outlook to between $135.0 billion and $145.0 billion, up from its previous range of $130.0 billion to $145.0 billion, as it continues aggressively expanding AI infrastructure.

Management isn't providing formal 2027 revenue guidance yet, but expects its AI investments and emerging product opportunities to support strong overall revenue growth throughout next year.

Long META.

SpaceX reported a transformational quarter as the rapid buildout of its Super Intelligence business pushed revenue to $14.6 billion, up 161% YoY. The company swung from an operating loss last year to $2.9 billion of operating income, while net income reached $4.4 billion. Adjusted EBITDA increased more than fourfold to $8.8 billion.

Super Intelligence was the overwhelming growth engine, generating $7.6 billion in revenue, up 830% YoY and representing more than half of total company sales. SI Solutions & Infrastructure contributed $7.0 billion as newly deployed compute capacity began generating revenue from cloud-services agreements, while Cursor contributed $608.0 million after closing roughly midway through the quarter. Management said current compute deployments are generating payback periods of less than one year at prevailing pricing.

Connectivity remained the company’s profit engine, with revenue increasing 70% to $5.3 billion and operating income nearly doubling to $2.4 billion. Starlink reached 13.6 million consumer subscribers after adding 1.6 million during the quarter, while enterprise and government revenue grew 91% behind Starshield and continued aviation adoption. Conversely, Space revenue increased just 6% to $1.8 billion as lower customer launch volume offset a more favorable launch mix.

Management emphasized that demand for compute continues to exceed available supply. SpaceX ended the quarter with 1.7 gigawatts of nameplate compute and expects to reach between 2.5 and 3.0 gigawatts by year-end. The company spent $19.6 billion on capital expenditures during the quarter and now expects another $35.0 billion to $40.0 billion in Q4 as it aggressively expands SI compute, Starship infrastructure and satellite production. Backlog reached approximately $63.0 billion, with roughly $42.0 billion expected to convert into revenue over the next year.

Looking ahead, SpaceX remains on track to reach a $100.0 billion annualized revenue run-rate by year-end and expects first-quarter 2027 revenue between $33.0 billion and $37.0 billion. Management expects continued growth across all three businesses, with Super Intelligence remaining the primary driver as additional compute capacity comes online.

Long SPCX.

Tesla reported a mixed quarter as improving automotive margins and accelerating FSD adoption were offset by rapidly rising investment in AI, autonomy and robotics.

Automotive revenue declined 3% to $20.6 billion as total deliveries fell 2% to 486,532 vehicles. Despite the lower volume, automotive gross margin excluding regulatory credits improved sequentially from 16.3% to 18.1%, helped by a stronger geographic mix. Regulatory credit revenue also declined sharply to just $113.0 million from $417.0 million last year.

FSD continued to become a more meaningful part of the business. Active paid FSD customers increased 67% YoY to 1.74 million, while more than 75% of new vehicle deliveries in North America signed up for FSD at delivery. Tesla also began deploying Cybercabs into its Austin Robotaxi fleet during the quarter, with cumulative unsupervised Robotaxi miles increasing eightfold sequentially to nearly two million miles.

Energy storage deployments reached 13.7 GWh, up 10% YoY, although Energy revenue declined 16% to $2.9 billion partly because of tariff-related customer refunds. Energy gross margin improved sequentially to 33.1%, and management said Megapack demand is so strong that 2027 production is already nearly sold out. Services and Other was another bright spot, with revenue increasing 33% to $4.61 billion and gross margin reaching a record 15.9%.

Management emphasized that Tesla is now entering an enormous investment cycle around Robotaxi, Optimus and Super Intelligence infrastructure. Optimus entered early production on its high-volume Fremont line, Tesla plans to reach 400 megawatts of AI training compute by year-end, and management is targeting approximately five million vehicles of annual production by 2030.

Management revised its 2026 capital expenditure outlook to approximately $20.0 billion and expects spending to continue increasing over the next several years as it expands Robotaxi, Optimus, AI compute, energy and semiconductor manufacturing capacity.

Long TSLA.

“Right now would be an ill-advised moment to go public.”