ASX set to rise as SpaceX AI revenue surges
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revenue → rise → ?
The ASX looks set to rise after a positive finish for US stocks, with the Dow gaining 1 per cent.
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Dow → look → cent
Meanwhile, SpaceX shares surged in after-hours trade as AI revenue rose more than ninefold to $US7.6 billion ($10.8 billion).
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revenue → surge → billion
Disclaimer: this blog is not intended as investment advice.
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blog → intend → advice
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Key Event
SpaceX beats estimates as AI business surges
Elon Musk's SpaceX posted a third-quarter profit overnight that blew past estimates as revenue more than doubled thanks to its surging AI business, sending its shares up 2.5% in extended trading.
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revenue → choose → trading
Capital expenses nearly tripled as it invested in compute infrastructure.
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it → triple → infrastructure
"We are in an inflection moment for SpaceX across launch, connectivity and superintelligence," Musk said on a call with investors.
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Musk → say → investors
Starlink and SpaceX's broader connectivity operations have been the company's main financial engine, underpinning Musk's AI ambitions.
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Starlink → underpin → ambitions
But SpaceX's own AI software, including xAI's Grok, has so far been overshadowed by rivals OpenAI, Anthropic and Alphabet's Google.
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software → include → rivals
Revenue in the third quarter surged 161% to $US14.58 billion for the three months ended September 30, compared with analysts' estimate of $US12.72 billion, according to data compiled by LSEG.
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Revenue → surge → LSEG
AI revenue rose more than ninefold to $US7.6 billion, mostly from renting out computing capacity, but AI took $US16.4 billion of the company's $US19.6 billion in capital spending, which SpaceX expects to stay near that level in the near future.
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SpaceX → rise → future
SpaceX is making its AI money mainly by renting out data-center capacity to developers such as Anthropic, Google and Reflection AI rather than from its own models, a business closer to a cloud provider's than an AI lab's.
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SpaceX → make → lab
"With AI revenue now the company's biggest business line, the company's hyperscale business is quickly providing operating strength and leverage which will carry into the advancements of its satellite and launch business.
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which → provide → business
Increasingly the strength and diversification of SpaceX makes a merger with Tesla feel imminent," said Daniel Newman, CEO of tech research group the Futurum Group.
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Newman → make → Group
Barclays suggested last week that a deal could be announced before Tesla's annual meeting, with SpaceX the likelier acquirer, though neither company nor Musk has officially committed to favoring a deal.
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company → suggest → deal
The company's AI business spans Grok, social-media platform X and a fast-growing data-center operation.
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business → span → Grok
Operating losses at the AI unit have been large and SpaceX has cautioned it will need sustained investment before it can consistently generate profits.
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it → operate → profits
The satellite-internet unit has continued to expand its subscriber base, aided by additional satellite launches and a growing range of consumer, enterprise, aviation, maritime and government services.
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unit → continue → services
Reuters
Key Event
ASX tipped to rise, RBA remarks ahead
Good morning, welcome to another day of market moves here on the blog.
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RBA → tip → blog
It looks like it could be a positive start for the local share market, after a pretty down day yesterday.
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it → look → day
Futures are up 0.4% at the moment, indicating the ASX 200 could post a modest rise.
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ASX → indicate → rise
It follows a mostly positive finish for US stocks, with the Dow gaining 1%.
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Dow → follow → %
Shares in SpaceX are up in after-hours trade, as the firm beat revenue estimates in its quarterly report — we'll bring you the details shortly.
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we → beat → details
Yesterday, the ASX 200 fell 0.3%, with a steeper fall for NAB shares after it announced sweeping job cuts.
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it → fall → cuts
We'll also be watching NextDC shares today — the stock is due to come out of a trading halt.
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stock → watch → halt
And in the next hour, RBA deputy governor Andrew Hauser is due to speak in Sydney, a so-called 'fireside chat'.
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Hauser → speak → Sydney
Business editor Michael Janda is at the event and will have live coverage here on the blog for us.
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Janda → have → us
The Aporia
