Musk mulls megacap merger as markets track earnings and oil swings
SPCX•SpaceX rose almost 10% overnight after beating expectations, while Elon Musk said a merger with Tesla, valued together at $3.5 trillion, would be a “good idea” and committees were examining the possibility. Brent crude swung sharply, and Netflix fell 5% after missing income estimates and lowering advertising guidance.
1. SpaceX and Tesla merger
SpaceX surged almost 10% overnight after its results beat expectations. Musk said a merger with Tesla would be a “good idea” and that committees were examining the possibility; the combined companies would have a market value of $3.5 trillion. Tesla was due to report earnings later Tuesday.
2. Oil and technology stocks
Brent crude hit five-month highs before plunging, a reversal that rippled through technology-focused stocks. Reports of renewed mediation efforts in the Iran war preceded the drop, though statements from Tehran later dampened hopes for an immediate breakthrough; crude was back above $110 a barrel Wednesday morning.
3. Other company results
Netflix fell another 5% after hours Tuesday after income estimates missed forecasts and advertising guidance declined. SpaceX reported $14.6 billion in third-quarter revenue, with artificial intelligence contributing more than half.
