00:00And right now we are two minutes away from the end of the trading day.
00:03Romain Bostic taking you through to that closing bell with a global simulcast.
00:07We're joined now by Carol Masser and Tim Stenevich.
00:09Welcome to our audiences across all of our Bloomberg platform television radio.
00:13Our partnership with YouTube, a broader market, Carol Masser, at least with the S&P 500,
00:18set to log its first record high since June 2nd.
00:21But we're keeping an eye on earnings from AMD and from SpaceX.
00:25Yep, those are the two big ones.
00:26SpaceX right now still up about 9.6% ahead of that earnings release, our quarterly update, if you will.
00:32It's definitely a risk on trade, but there's a lot at stake.
00:35Investors want some specifics when it comes to SpaceX's business.
00:38We'll see whether or not we get them.
00:39And we'll see what kind of mood Elon is in, as Max Shafkin reminded us.
00:44Sometimes it's upbeat, sometimes it's not.
00:46SpaceX is not the only company reporting after the bell, but it's certainly, I think, fair to say the most
00:50highly anticipated one.
00:51We'll hear from AMD.
00:52We'll hear from Paramount Skydance.
00:55Booking holdings will give us some sort of potential view on how travel has been and how we expect travel
01:01will play out for the remainder of the year.
01:05And Viasat, interestingly enough, a competitor to SpaceX's Starlink business, is reporting, too.
01:11Yeah, I do want to point out, though, I was taking a look at the implied market moves and all
01:15the companies that are reporting earnings.
01:17AMD, an implied move of about 8 percent, which is high.
01:21SpaceX right now, implied market move after the bell or tomorrow in the cast session, 15 percent here.
01:28And, of course, we talk about a company that's not only going to be driven, a stock that's going to
01:32be driven by the earnings,
01:32but the idea that with about 640 million shares now available for trading, keep in mind, in two days, you're
01:40going to add as many as 911 million more shares to that.
01:44And that seems to be where some of the concern.
01:46Short interest now, well over 200 million shares.
01:48Record high for the Dow Jones Industrial Average here on this Tuesday afternoon, up more than 900 points to 1
01:54.7 percent.
01:54A record high for the S&P 500, up 1.8 percent.
01:58The Nasdaq Composite, up about 2.6 percent.
02:01The Nasdaq 100, up 3.3.
02:03And the Russell 2000, Carol Master, closing out the day 1.9 percent.
02:07All right, as we wait for SpaceX, booking is out.
02:09And let's get to the outlook.
02:11The company says it sees third-quarter revenue at Constant FX, up 5 percent to 7 percent.
02:16Third-quarter gross bookings, up 4 percent to 6 percent.
02:19And now we have Paramount out as well.
02:21Yeah, Paramount Skydance now out with their earnings as well.
02:25For the most recent quarter, the company did say that year-over-year revenue did rise about 16 percent to
02:326.91 billion.
02:33That looks like a beat.
02:34It looks like on the bottom line also a beat as well.
02:37Here's your forecast for the full year.
02:39The company says expect total revenue of $30 billion.
02:42It says expect EBITDA of $3.8 billion, which actually looks a little bit light.
02:48And for the current quarter, the company says revenue, $6.95 to $7.15 billion.
02:54That's the range on Paramount Skydance.
02:56Looking at some highlights here in the investor letter, the company said that second quarter was the best quarter for
03:01retention in Paramount Plus' history.
03:03It was powered by Dutton Ranch, UFC, and, of course, the FIFA World Cup, non-exclusively across six countries in
03:09Latin America.
03:10They gained about 2 million new Paramount Plus subscribers in the quarter, now 81.6 million worldwide.
03:15The company, too, says it's raising its full year 2026 outlook, as you mentioned, to $3.8 to $3.9
03:22billion in adjusted EBITDA.
03:24All right, guys.
03:25Amgen, let's go to that second quarter.
03:26Adjusted EPS, $6.29.
03:28A share that is a beat.
03:30$5.62 is what the street was expecting.
03:33Let's go to the outlook.
03:34Amgen seeing fiscal year revenue of $38.2 billion to $39.4 billion.
03:38That is above its earlier estimate of $37.1 to $38.5 and sees fiscal year adjusted EPS of $22
03:45.30 to $23.50 a share.
03:50And that is, too, above its estimates.
03:52And you're seeing shares of Amgen, which are already up about 19% year-to-date now with a gain
03:56of about 1.5%.
03:57SpaceX, that first number coming, the second quarter revenue, $7.8 billion and remain.
04:03That is above the estimate of $6.81 billion.
04:06Absolutely here.
04:07We're going to wait for some of these other numbers to trickle out.
04:09This is going to be a complicated report.
04:11Remember, we're basically talking about three primary businesses.
04:14There's space business, which is effectively the launch, the connectivity business, which, of course, is Starlink, and the AI business.
04:20And a lot of people not only want to see what it did on the quarter, but more importantly here,
04:24what type of long-term forecast the company will give with regards to that.
04:29Also, Tim, obviously the idea of where we might go with regards to more of a mashup, a lot of
04:35speculation about what could happen with Tesla, whether that gets absorbed into SpaceX.
04:40And the idea here as to what sort of deals and partnerships SpaceX can actually announce to keep investors placated
04:47in the short term.
04:48We got a little taste of that just a few moments ago, Tim, when they announced that they are partnering
04:53with NVIDIA to use NVIDIA's Rubin chips here on these orbital data centers that it's trying to build out.
04:59Yeah, that's the Starmind AI-1 satellite compute payload, the company partnering with NVIDIA to design the satellite compute payload.
05:06I want to remind people, too, that that connectivity business is the vast majority of its main business in terms
05:12of revenue.
05:13In 2025 for the year, 61% of the business was connectivity.
05:18That includes the enterprise consumer versions of Starlink.
05:21Space accounts for about 22% of the business.
05:24And AI, as of 2025, was about 17% of the company's revenue.
05:29Another headline coming.
05:30SpaceX second quarter AI segment operating loss of $1.26 billion versus an estimate that the street was looking for
05:37a higher number, $2.39 billion.
05:40Right now we're seeing SpaceX shares, which rallied big time today, just up about eight-tenths of a percent, Romain.
05:46Absolutely.
05:46And these numbers continue to trickle out here.
05:48The company says that EBITDA in the most recent quarter, $3.5 billion.
05:52That's well above what the street was looking for, for $2 billion.
05:57Again, that's for the company as a whole.
05:58It also says that it reached 12 million Starlink subscribers at the end of the second quarter.
06:04And here's your CapEx number, which, of course, a lot of people are paying attention to, $18.37 billion, basically
06:10$18 billion in CapEx.
06:12Now, that's backwards looking.
06:13That is for the second quarter.
06:15It'll be interesting to see what the next couple of quarters look like here.
06:18The company did say that it did end the second quarter with $100 billion in cash and cash equivalents.
06:24Yeah, the estimate was actually for higher than that.
06:25The estimate was for $18.6 billion.
06:27Some other numbers to highlight here, SpaceX reached 12 million Starlink subscribers at the end of the second quarter.
06:33As you mentioned, the AI segment operating loss, $1.26 billion.
06:38The estimate was for a loss of $2.39 billion.
06:41Shares bouncing around in the after hours, now just down about 1.3%.
06:46But shares surged in today's trading session, still off quite a bit from that high earlier this year.
06:52The estimate for second quarter Starlink subscribers was 12.19.
06:56So that was within expectations.
06:59The company also expecting that cursor deal to close this quarter.
07:03That is the third quarter of the year.
07:05Once again, these headlines are continuing to trickle out.
07:07SpaceX shares down just by about 2.6% right now.
07:11Our team putting its first story out on the Bloomberg.
07:13SpaceX's revenue exceeded Wall Street's expectations in the company's first quarterly financial report following its blockbuster IPO back in June.
07:21The satellite space and AI conglomerate reported revenue of $7.8 billion, greater than the $6.81 billion that Alice
07:29pulled by Bloomberg expected on average, unveiled an operating loss of $1.26 billion from its AI business, better than
07:36the consensus expectation for a loss of $2.39 billion.
07:40But we should point out, it was the largest IPO.
07:43We've seen quite a roller coaster.
07:45After a couple of days initially out of the gate, when it IPO'd of moving higher, we've seen the stock
07:50pull back.
07:50And short interest has been very high.
07:53And that is something to keep in mind as this company goes through the release and the analysts call to
07:57see what kind of short covering if the news is really upbeat.
07:59Well, that's what I'm curious about, too, is how much of the share price reaction today is even going to
08:03be actually tied to the earnings themselves.
08:06I think it's over 200 million shares were shorted just coming into today.
08:10My guess is that number went higher as we got closer to this earnings report.
08:14You have 600-plus million shares now out there floating around.
08:18And you have a lockup expiry in two days that's going to potentially add 911 million more shares.
08:24Not to mention, you get almost double that when you get towards the end of the year.
08:28So that's going to potentially put some downward pressure on this stock.
08:32But, of course, a lot will depend on the conference call, which kicks off in about 30 minutes' time.
08:36And we're going to hear from Elon Musk.
08:37And he's going to have to say, look, you know, I got a plan.
08:39Either you believe me or you don't.
08:41That's the Elon premium that Max Schafferkin was writing about for the Businessweek Daily newsletter earlier today.
08:46I also want to point out that we're seeing a relatively muted reaction as of now just to these numbers.
08:52Like you said, Romain, a lot of it will likely come on the call.
08:54And going into, as of this morning, the options market was pricing a move of upwards of 14% to
08:59the upside or the downside.
09:01Getting a little more information from the company about the most recent quarter.
09:05Government contracts, interestingly enough.
09:08$6 billion in multi-year U.S. government contracts.
09:11That's for Starship, our own Dana Hall reporting.
09:14SpaceX shares up right now by about 1%.
09:16And let's not forget, Lauren Grush, who wrote a preview and covers this company and the space industry, said, you
09:22know, what's really important is getting also updates on Starship specifically.
09:26Are there any technical setbacks?
09:28Because this is certainly key in terms of getting satellites out into the suborbital, or they've only been suborbital, but
09:35getting them further out.
09:36And that's part of the idea of getting either data centers in space, but this is so important, certainly, to
09:42the company's story going forward.
09:43All right.
09:44Right now, folks, shares of SpaceX just up about 1% in the aftermarket.
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