Space Exploration Technologies Corp.

SpaceX delivered exceptional Q3 results, with revenue growing 161% year-over-year and adjusted EBITDA increasing 306%. Its rapidly expanding compute business is now the main growth driver, with management targeting up to 13 GW of capacity by the end of 2027. Strong external demand and flexible compute allocation could help SpaceX finance its own AI development while monetizing capacity at attractive rates.

Tom Staudt, president of ARK Invest (@ARKInvest2015), discusses how the decline of AI inference costs opens the door to a stronger productivity, which in turn leads to a stronger economy. A tentative merger between Tesla (TSLA) and SpaceX (SPCX) is something he believes adds to that thesis.

Space Exploration Technologies reversed a billion-dollar loss from last year after reporting $4.4 billion in net income during the third quarter. Interestingly, $561 million of this reported profit came from outside SpaceX's core operations.

A report that SpaceX wants access to 80,000 U.S. cell sites sent tower stocks soaring and telecom stocks down on Friday. The last company that tried to become America's fourth wireless carrier ended up fighting its tower landlords in court.

Space Exploration Technologies is growing quickly but burning a lot of cash in the process. It has a complicated business plan that relies on major engineering breakthroughs in a short time frame.