Investors are preparing for a major week of third-quarter earnings, with analyst Dan Ives identifying Meta Platforms Inc. (NASDAQ: META), Space Exploration Technologies Corp. (NASDAQ: SPCX), and Tesla Inc. (NASDAQ: TSLA) as the primary focus points. Ives shared these observations in a post on X, noting that these three companies face significant questions as the tech sector reports results.
Regarding Meta, Ives is looking for confirmation that the company can begin monetizing its "Muse" application on top of its existing ad engine. Meta President and Vice Chairman Dina Powell McCormick previously stated that the company is exploring multiple monetization pathways for Muse, suggesting that increased user engagement could lead to recurring pricing models, including subscriptions.
SpaceX is also a central focus for Ives. He is watching to see if Starlink’s cash generation can fund an AI business that is beginning to pay for itself. This interest follows reports that SpaceX is preparing to borrow approximately $40 billion to purchase Nvidia Corp. (NASDAQ: NVDA) chips. Ives described this financing plan as a "smart strategic move," noting that the contracted backlog in AI and Starlink's cash generation provide the capacity to service the debt.
For Tesla, Ives’ focus is on whether the company can move autonomy from an optionality to a fleet. This aligns with Tesla’s strategy to expand its Robotaxi network, which involves asking businesses to consider purchasing "Cybercab fleet vehicles." However, Ives noted that the revenue split between Tesla and third-party Cybercab owners remains an undisclosed metric that could determine the platform's economics.
Beyond these three companies, investors are also awaiting earnings reports from Netflix Inc. (NASDAQ: NFLX), General Motors Co. (NYSE: GM), Lam Research Corp. (NASDAQ: LRCX), IBM Corp. (NYSE: IBM), and Procter & Gamble Co. (NYSE: PG).
