Stock Market Today

The SpaceX (SPCX) quarter beat on revenue and EBITDA across all three segments (Intelligence/AI, Space, Connectivity). The only blemish was a miss on Starlink subscriber adds, offset by better pricing. Guidance calls for revenue of $33B to $37B by Q1 FY27. Management says it expects 2 to 3 GW of compute by year-end 2026 and plans to add 10 GW in 2027, well above prior expectations, and told JPMorgan it is not considering raising equity.

Price targets:

• JPMorgan: $500 from $240 (Overweight). Biggest move. Says the forward driver is superintelligence, not the segment beats.
• Cantor Fitzgerald: $345 from $246 (Overweight). Sees $500B to $1T in year-end 2027 ARR, self-funded compute expansion, and chip supply constraints giving SpaceX pricing power.
• Barclays: $300 from $254 (Overweight). Model update on the beat.
• Morgan Stanley: $300 reiterated (Overweight). Says the story is only now getting interesting.
• Citi: $240 from $200 (Buy). Also opened a 90-day upside catalyst watch, pointing to Q4 beat-and-raise continuation and Starship Flight 15 as a major reusability catalyst.
• UBS: $230 from $210 (Buy). New compute deals ramping in Q4, Starship catch milestones, Grok improvements.
• TD Cowen: $224 from $200 (Buy). Estimates up on the beat.
• Susquehanna: $176 from $173 (Neutral). The lone holdout. Flags execution risk on the compute buildout and dependence on Starship commercialization.

From my evening update:

US economic data is light Wednesday, with only weekly mortgage applications and EIA petroleum inventories.

The Fed remains in its blackout period ahead of next week’s October 27–28 FOMC meeting.

Non-Bill (>1yr in maturity) US Treasury auctions resume with a $13B 20-year bond reopening.

Q3 earnings season continues with 26 S&P 500 components including a number of AI-related names: Meta Platforms (META), Tesla (TSLA), Lam Research (LRCX), Philip Morris (PM), Thermo Fisher Scientific (TMO), Texas Instruments (TXN), IBM (IBM), Abbott Laboratories (ABT), NextEra Energy (NEE), Danaher (DHR), AT&T (T), CME Group (CME), Elevance Health (ELV), CSX (CSX), Moody’s (MCO), Kinder Morgan (KMI), United Rentals (URI), Wabtec (WAB), Crown Castle (CCI), Northern Trust (NTRS), Teledyne Technologies (TDY), Las Vegas Sands (LVS), Packaging Corp. of America (PKG), Southwest Airlines (LUV), Rollins (ROL) and Globe Life (GL).

Ex-US highlights are UK September CPI, PPI, RPI, public finances, August house price index, Japan September trade balance, New Zealand Q3 CPI.