SpaceX Shares Rise; Super Micro Rallies; Netflix Falls

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0:08 The Stock Movers Report, your roundup of companies making moves in the stock market, harnessing the power of Bloomberg data.

0:15 Let's take a look at some stocks on the move today. I'm Nathan Hager, joined by Bloomberg's Chloe Mellie. On a positive morning, a lot of the reason for that, SpaceX, just because of the weight in the market. Good morning, Chloe.

0:29 Good morning, Nathan. Yes, indeed.

0:30 We're in the thick of adding season and some really big names are in focus today. But of course, we do have to start with SpaceX, which had. actually very good results with third quarter revenue, much better than expected.

0:44 That was driven by a huge growth in two.

0:47 Businesses in particular, which was AI and then the satellite internet business as well.

0:52 And in addition to that, we can't not talk about it.

0:55 Elon Musk also said that SpaceX could be combined with Tesla in what would be the biggest ever corporate merger. that would essentially create a conglomerate that would include electric cars, data centers, space rockets, and with the ambitions, of course, that Musk has talked about before, which is data centers in space, driverless cars, humanoid robots, et cetera. Musk did say it might be tough to get a shareholder support on that. So it's not really a done deal yet, but shares are up on the back of this and also the results.

1:29 Yeah, a big jump for SpaceX. It looks like Tesla's getting a little bit of a, lift in the pre-market as well, but even bigger gains after earnings for Supermicro Computer, Chloe.

1:40 Yeah, absolutely.

1:41 So staying within this AI theme of good sales results for Supermicro, which makes a service for data centers. So it's an interesting company because of its status as a really crucial AI player, but also because it has been the subject of a probe recently that accused a co-founder and two others of illegally diverting billions of dollars worth of service to China, which is, of course, in violation of U.S.

2:08 Law.

2:08 And so the company hasn't actually been charged in the case, but that's been a bit of a shadow on the stock recently. So those strong earnings are really in focus today and really driving that stock this morning, as you said.

2:19 Of course, you got to go to the other side of the coin here. The other big name that reported earnings after the close yesterday was Netflix. And the struggles continue.

2:31 Yes, they absolutely do.

2:32 It looks like weakness is set to continue for the company. It reported the slowest sales growth in three years, also forecast a fourth consecutive quarter of slowing growth with the company really blaming this on the advertising business. And of course, that's reviving investor concerns on that stock.

2:51 The problem is.

2:51 That Netflix has gone months now without a really big hit in either film or TV and is really struggling to attract viewers to new shows or to new seasons of older shows. And of course, you have to remember that there's so much competition in streaming at the.

3:09 Moment and Netflix is not really able to stand out.

3:12 So we've got this engagement problem and then also the failed bid for Warner Brothers that is making it quite hard for investors to see where the growth strategy is.

3:22 Going, going forward.

3:23 And we've seen the stock really on a downward trajectory that is continuing today.

3:27 And another stock on a downward trajectory after earnings this morning is AT & T.

3:31 What do they report?

3:33 Yeah, it's quite interesting for that company because we do have revenue and profit ahead of expectations.

3:37 We have a guidance that is being raised, but the stock is down.

3:41 And that might be because it reported fewer wireless phone subscribers than expected. And that is coming at a time of really intensifying competition in that space.

3:52 Right now, there's a price war going on for mobile customers.

3:55 And soon there could be really major disruption with SpaceX entering the sector as well.

4:00 And that could really eat into AT & T' s.

4:03 Profit margins and push it more towards spending even more to kind of retain those customers and attract new ones as well.

4:11 So that's really.

4:12 Been the focus for investors this morning. And that's really overshadowed what were otherwise actually very strong earnings.

4:18 The Stock Movers Report from Bloomberg Radio. Check back with us throughout the day for the latest roundup of companies making news on Wall Street. And for the latest market-moving headlines, listen to Bloomberg Radio Live. Catch us on YouTube, Bloomberg.com, and on Apple CarPlay and Android Auto with the Bloomberg Business app.