Musk's AI win, Meta's cash burn, and the CoreWeave conundrum: The financial week in five charts
SPY•SpaceX reported third-quarter revenue of $14.6 billion, while Meta recorded $2 billion in negative free cash flow. The roundup also covers rising French bond yields, Middle East oil exports and conflicting analyst views on CoreWeave.
1. SpaceX reports a profit
SpaceX posted its first profit since its IPO four months ago, with third-quarter revenue up 161% year on year to $14.6 billion. Half of revenue came from its AI business. The news lifted SpaceX shares and the Nasdaq; Elon Musk called a potential merger with Tesla “a good idea.”
2. French debt and oil
France’s 10-year government bond yield rose above 5% for the first time in 24 years, and the premium over German debt passed 170 basis points, its highest since 2011. Middle East crude exports rose above pre-war levels in October, but prices remained at five-month highs as producers and consumers relied on more elaborate logistics.
3. Meta and CoreWeave
Meta reported negative free cash flow of $2 billion in the third quarter, compared with almost $11 billion in positive cash flow a year earlier, while beating revenue estimates and giving a strong fourth-quarter outlook. CoreWeave is loss-making and heavily indebted. HSBC analysts forecast average returns through 2030 below its borrowing cost and advised investors to cut holdings, while Goldman Sachs strategists upgraded the stock to “buy” from “neutral.”
