SpaceX Earnings Steal the Show: What's Next for $SPCE?

Everyone spent the week talking about $META's record $64.2 billion quarter, but the earnings story that actually moved the needle on Tuesday was SpaceX, which reported $4.4 billion in net income versus expectations of just $1.88 billion, and posted 161% revenue growth. That's not a beat, that's a demolition.

The part of the SpaceX report that has retail traders genuinely buzzing is the AI unit, now rebranded as Super Intelligence, which generated $7.56 billion in revenue and surpassed the company's Starlink connectivity business for the first time ever. Bernstein analyst Doug Haret flagged that SpaceX's ability to monetize terrestrial data center capacity at $30 to $50 per watt is a completely different business model than the satellite internet story most people bought into. The street is now trying to figure out how to price that.

Meanwhile, AT&T slipped 10% on earnings day, and the CNBC market close recap noted it was one of the bigger single-day losers in telecom this cycle. The contrast with SpaceX's surge of nearly 8% is brutal and pretty much sums up the two-speed economy right now: own the infrastructure that feeds AI, or get left behind by it.

Stepping back, Fundstrat's Mark Newton pointed out on YouTube that the rally is stronger under the surface than headline S&P 500 numbers suggest. The percentage of stocks above their 20-day moving average doubled from 20% to 45% in just two and a half weeks. That kind of internal breadth improvement usually means the move has legs, not that it's about to roll over. With the VIX back at 16.68 after briefly spiking to nearly 20 on October 16th, the fear trade is fading fast.

The bear case for all of this is sitting quietly in the Treasury market: the 10-year yield is at 5.15% and not blinking. When risk-free money pays five percent, every earnings multiple gets a little harder to justify. SpaceX's 161% growth gives it some cushion. AT&T's single-digit revenue growth does not.

Earnings season is telling you exactly which companies built their moats wide enough to matter in 2026. The market is just speed-running the sorting process.