Wall Street finished Tuesday relatively quietly as investors worked through one of the busiest stretches of third-quarter earnings season.
The S&P 500 gained approximately 0.3%, while the Nasdaq Composite finished essentially unchanged. [finance.yahoo.com]
But the real action came after the closing bell, when two highly visible companies, SpaceX and Netflix, reported quarterly results.
And Wall Street delivered two very different verdicts.
💎 Diamond of the Day: SpaceX (SPCX)
SpaceX gets our Diamond after its shares rallied in extended trading following the company’s third-quarter earnings report.
SpaceX reported $14.58 billion in third-quarter revenue, up 161% year over year. CNBC reported an LSEG consensus estimate of $12.72 billion. Adjusted earnings were reported at $0.45 per share versus an LSEG consensus estimate of $0.13. [cnbc.com]
The shares responded positively, climbing about 8% in extended trading in CNBC’s post-earnings coverage, after finishing the regular session at $147.79. [cnbc.com], [finance.yahoo.com]
Why It Shined
- Third-quarter revenue reached $14.58 billion, up 161% year over year. [cnbc.com]
- Revenue exceeded the cited $12.72 billion LSEG consensus estimate. [cnbc.com]
- Adjusted EPS was reported at $0.45 versus $0.13 expected by the LSEG consensus. [cnbc.com]
- Starlink subscribers increased to 13.6 million from 12 million in the prior quarter, while total connectivity revenue increased 69% to $5.25 billion. [cnbc.com]
- Shares rallied approximately 8% in extended trading following the report. [cnbc.com]
There was another eye-catching development on the earnings call. CEO Elon Musk said a combination of SpaceX and Tesla would be a “good idea,” and CNBC reported that the boards of both companies have formed special committees to discuss a possible combination. [cnbc.com]
That’s certainly noteworthy, especially with Tesla reporting its own earnings Wednesday, but a discussion is not a completed transaction. I would leave it there for our public-facing commentary.
🐕 Dog of the Day: Netflix (NFLX)
Netflix finds itself back in the doghouse after shares fell following its third-quarter earnings report.
And here’s what makes this selection interesting: the reported quarter itself wasn’t necessarily bad.
Netflix reported third-quarter revenue of approximately $12.87 billion, up 11.9% year over year, while earnings of $0.87 per share exceeded the cited $0.82 consensus estimate. [marketbeat.com]
Nevertheless, the shares declined sharply after hours. Netflix had already fallen about 1.7% during regular trading, and then dropped another 5% or more in extended trading as investors evaluated the company’s fourth-quarter outlook. [fool.com], [marketbeat.com]
Why It Barked
- Netflix closed the regular session down approximately 1.7%. [fool.com]
- Shares fell another 5% or more in extended trading following the report. [fool.com], [marketbeat.com]
- Third-quarter revenue nevertheless increased roughly 12% year over year to $12.9 billion. [fool.com]
- EPS of $0.87 exceeded the cited $0.82 consensus estimate. [marketbeat.com]
- Published coverage pointed to a more restrained fourth-quarter outlook, including slower revenue growth and lower profit margins, as investors evaluated the report. [fool.com]
This also builds on our recent Netflix coverage. Ahead of earnings, the stock was already down more than 25% in 2026, alongside recent job cuts and a change in content leadership. [finance.yahoo.com]
But those developments don’t tell us where the stock goes next. They simply provide context for Tuesday’s market reaction.
Important Disclosure
This commentary is provided solely for informational and educational purposes and should not be considered a recommendation or solicitation to buy, sell or hold any security, sector or investment strategy. The “Diamond” and “Dog” designations reflect notable market performance and/or publicly reported developments and are not intended as investment recommendations or assessments of future performance. After-hours trading can involve lower liquidity and greater price volatility than regular-session trading, and extended-hours prices may differ materially from subsequent regular-session prices. Analyst estimates represent third-party expectations and may vary by source. Past performance does not guarantee future results. Investing involves risk, including possible loss of principal.