Strong earnings, fragile conviction

Ipek Ozkardeskaya ipekScope

Earnings are coming in strong, but the reaction at the index level fails to match that enthusiasm.

SpaceX jumped 7.80% on a nearly tenfold increase in its AI revenue, while Tesla rallied 3.40% on talk of a potential SpaceX–Tesla merger (suggesting that investors see value in combining the two companies). The Philadelphia Semiconductor Index recovered nearly 2%, and the Nasdaq 100 rebounded more than 1%.

After the bell, Meta beat expectations, reported a much smaller cash burn (negative $2.12 billion in free cash flow versus an expected $8.5 billion outflow), and raised the lower end of its capital expenditure guidance from $130–145 billion to $135–145 billion.

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Author

Ipek Ozkardeskaya

ipekScope

Ipek Ozkardeskaya began her financial career in 2010 in the structured products desk of the Swiss Banque Cantonale Vaudoise. She worked in HSBC Private Bank in Geneva in relation to high and ultra-high-net-worth clients.

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