TLDR
- Meta Platforms and Tesla will release third-quarter earnings Wednesday after the market closes.
- SpaceX and Netflix report Tuesday, while four major airlines report Thursday.
- The Nasdaq Composite lost 4.5% last week, ending a four-week run of gains.
- The Philadelphia semiconductor index fell 11.41% as AI debt fears and hot inflation data rattled investors.
- Netflix is cutting about 1,000 jobs, and Tesla faces a safety probe into its Cybercab service.
A busy stretch of earnings reports begins this week, and two members of the Magnificent 7 are in the lead. Meta Platforms and Tesla will both report Wednesday after the closing bell.
Each company will hold a call at 5:30 p.m. ET. Alphabet, Microsoft and Amazon report next week, and Apple follows on Nov. 2. Nvidia is not expected to report for some time.
The reports come after a hard week on Wall Street. The Dow Jones Industrial Average gained 0.7%, but the S&P 500 slipped 2%. The Nasdaq Composite dropped 4.5%.
Why Tech Stocks Fell Last Week
September inflation data came in hotter than expected. That fueled talk that the Federal Reserve could keep raising interest rates.
Investors also grew uneasy about the heavy borrowing AI companies are using to pay for chips and data centers. The Philadelphia semiconductor index fell 11.41% for the week.
CoreWeave lost about a quarter of its value, and Oracle dropped 9.31%. The cost of insuring against defaults on bonds from both companies climbed. Memory chip stocks also fell after a Chinese company announced progress in memory production.
Deutsche Bank analysts said credit markets were showing signs of distress in AI-related names.
What to Watch From Meta and Tesla
Meta will be the first of the large AI spenders to report. Its new Muse AI model has been downloaded millions of times since its September launch. The company also released an open-weight version of Muse Spark for coding.
Last quarter, Meta posted record revenue, but earnings missed estimates and its shares slid. AI spending weighed on profit during that period.
Tesla missed earnings estimates last quarter after spending heavily on self-driving and robot projects. Its third-quarter vehicle deliveries did beat estimates.
Tesla also showed off a redesigned Roadster last week. The car used SpaceX rocket technology to launch off a ramp, flip and land on four wheels. Elon Musk said production should start in 2028.
Separately, regulators are looking into safety standards for Tesla’s driverless ridesharing service, Cybercab.
Other Reports on the Calendar
SpaceX reports Tuesday after the close. It went public earlier this year and sent its Starship rocket into orbit for the first time in September. This month it agreed to buy cellular spectrum licenses from Grain Management in a deal reportedly worth about $8 billion.
Netflix reports Tuesday at 4:01 p.m. ET. The Wall Street Journal reported the company plans to cut roughly 6% of its staff, or about 1,000 jobs, the largest cuts since 2022. Netflix has also forecast slower revenue growth, and its bid for Warner Bros. Discovery’s streaming and studio assets failed earlier this year.
General Motors reports Tuesday at 6:30 a.m. ET. IBM and Lam Research report Wednesday.
American Airlines, United Airlines, Alaska Air Group and Southwest Airlines report Thursday. Air travel fell about 5% from a year earlier in September, and Delta Air Lines recently gave a softer outlook.
Comcast and Procter & Gamble also report Thursday morning. Western Digital closes out the week with fiscal first-quarter results after the bell Thursday, followed by a call at 4:30 p.m. ET.
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