Tesla's Lower Capex Plan, Meta's Credit Risk, American Airlines Rises
Donnerstag, 22. Oktober 2026 · 4 min
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Today's biggest winners and losers in the stock market, a look at the notable movers:
On this episode of Stock Movers:
- Tesla (TSLA) shares pare losses after falling as much as 3.3% Thursday as traders weigh its lower spending outlook against a profit beat and potential merger with SpaceX. BNP Paribas analyst James Picariello boosted his rating on the electric-vehicle maker to neutral from sell as the possible takeover outweighs valuation concerns. The company had been consistently short of the pace needed to hit its spending goal, particularly after a $4.73 billion outlay in the third quarter, with analysts having expected $7.95 billion on average. Tesla beat analysts’ profit estimates and touted rising customer demand for its automated-driving software, with adjusted earnings of 48 cents a share in the period, while Wall Street had anticipated 44 cents on average.
- A measure of Meta Platforms (META) credit risk hit a record high as plans to ramp up capital spending reignited fears that tech giants will issue more debt for the artificial intelligence buildout. The price of five-year credit default swaps on Meta's debt rose to around 119.3 basis points a year, the highest intraday level since the swaps started actively trading about a year ago. Meta said it has agreed to spend about $825 billion in the future on various leases and contracts, many of them related to computing power and infrastructure for artificial intelligence. Meta shares are lower.
- American Air (AAL) shares rise as the company’s broad-based third-quarter beat and guidance for better-than-expected revenue growth in the fourth quarter offset concerns about elevated fuel costs and capacity growth. American expects fuel expenses to be about $2.8 billion higher in the fourth quarter compared to a year earlier. American Air shares initially declined before turning positive in the afternoon.
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The Stock Movers Report. Your roundup of companies making moves in the stock market. Harnessing the power of Bloomberg data.
I'm Carol Masser along with Tim Stead. Let's get to some stocks on the move. With us to do it, Danica Sikova. She's Bloomberg News cross-asset reporter joining us here in studio. And we're going to talk a little bit about Tesla.
We've been talking about decliners. We have to start with Tesla. The stock is having a pretty rough day, but actually in earlier trading, it was down more. So we're seeing some relief. It's all coming because the stock pulled back its pending plans after investment last quarter. trialed expectations. The number everyone was looking at was capital expenditure. And the previous target they had was $ 25 billion. The target we had now was $ 20 billion. And investors weren't too excited about that. So the main thing is, obviously, there is this potential merger with SpaceX. And in order to reach that goal, the company wanted was expected to invest a lot in AI, robotics, and all those things that require
pretty high capital expenditure from the firm.
You can be.
Damned if you do, damned if you don't with the AI spend.
Exactly, because we're seeing the opposite thing with Meta and all the tech companies. But for Tesla, it's a slightly different story. Nevertheless, what we're seeing from analysts, they're pretty upbeat about the stock today. That's one reason why it's down only 2.6%, and it was down more than three in earlier trading. The ticker of scores is TSLA. BNP Paribas, that was one bank that upgraded their target from sell to neutral. They say possible takeover outweighs valuation concern. JP Morgan also pretty bullish. They updated their target to $ 430 today.
says the reports was incrementally positive. I mean, that number was a setback, but the report was good.
I think it's interesting. All right. So from Tesla, you mentioned also Meta, which has.
Been- We can't talk about this one enough. Right.
And which has been upping its spending, right?
They've been upping. I've used all the story for Meta for a long time. They always upped the spending. And today it wasn't taken very well. The stock is down 8%. What is worse, credit default swap market is going pretty well. It rose as much as nine basis points earlier today. Really, really big increase. We've seen a lot of tech companies and a lot of activity in the credit default swap market, which you wouldn't necessarily think about.com.
I keep thinking they're no longer equity stories. They're equity and debt stories. But is that some sort of signal about where we are in a cycle?
Maybe.
Right?
Or the maturity of these companies, perhaps. But anyway. Yeah.
But it's been very interesting. Obviously, they had a lot of success with Muse. And I feel as though that took over. And I guess for them, it was a good enough boost to say, hey, we're spending more. Look at this. This is a great product.
Success in the sense that people were talking about this product.
People were talking about it.
Not success in the sense that this product is profitable for the company.
Yeah, but I feel as though from all the launches they had, and Meta has had so many... Muse has definitely been the most successful in the last few years. So I think they're riding on that high, and they're like, here we are. We're going to spend more.
All right, so Meta, M-E-T-A, of course, down about 8% as we speak. Just quickly, just got about 20 seconds, American Airlines.
Well, American Airlines is one gainer. Even if in earlier trading it was suffering losses, sticker AAO is up now. The negative news was it cut its full-year outlook again. But we're seeing some premium customers doing pretty well. So I guess that's helping investors.
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.
