Intel Up 7% While Netflix Slumps 10%; Musk the First Trillionaire?
Intel stock jumps nearly 8% after Q3 results beat expectations
Intel reported third-quarter revenue of $13.7 billion, beating its own guidance and rising 6% quarter-over-quarter. Earnings per share came in at $0.23—turning around from a loss a year ago.
Management noted that demand for its chips is now outpacing supply, a trend expected to continue into 2025. Intel guided for Q4 revenue between $12.8 billion and $13.8 billion, roughly in line with analysts’ consensus of $13.4 billion (FactSet).
Importantly, Intel has significantly strengthened its balance sheet, ending the quarter with $30.9 billion in cash and short-term investments. That includes around $20 billion raised through strategic partnerships and government funding. Nvidia’s $5 billion investment into Intel is also expected to close by year-end.
With government support, Nvidia’s backing, and a rebound in performance, Intel appears to be out of the rut. Its recovery is now better positioned to ride the AI wave. As we mentioned previously, tighter integration with Nvidia’s GPUs could be a huge tailwind.
Netflix: A different kind of problem
Netflix isn’t facing the same existential challenges that plagued Intel in recent years. It was the disruptor to traditional cable and cinema—while Intel was the one being disrupted.
Netflix reported strong revenue growth of 16.7% but missed its own guidance by a slim $10 million. The real miss came in earnings: $5.87 per share, well below analyst expectations of $6.94 and its own forecast of $6.87. The shortfall was due to an ongoing dispute with Brazilian tax authorities—a one-off expense that shouldn’t affect long-term margins.
Subscriber growth remains strong. Although Netflix will no longer report subscriber numbers, it’s estimated to have 270 million global subscribers—far ahead of its competitors:
Netflix ~270 million
Disney+ 128 million
Max (HBO/Discovery+) 122 million
Prime 240 million but only 90 million active Prime Video users
Paramount+ ~70 million
Peacock 36 million
Apple TV+ 25 million
Despite its dominance, Netflix’s valuation looks stretched. Even after a 10% drop before results, we think the stock is still overpriced. We’re looking at below $1,000 before it becomes interesting again.
Tesla: It is All About Betting on Musk
Tesla reported Q3 revenue of $28.09 billion, crushing estimates of $26.45 billion. This came on the back of a record 497,099 vehicles delivered in the quarter. Its energy storage business also set a new high, growing revenue by 44%.
But earnings disappointed—EPS dropped 37% year-over-year. The drag came from price cuts across EV models, higher input costs, lower regulatory tax credit revenue, and heavy R&D spending on ambitious projects like the Optimus humanoid robot and AI development.
Still, Tesla shares only dipped 3% after results and quickly recovered. The stock is up 5% for the week and 18% year-to-date.
And Musk isn’t shy about asking for his reward. He’s now pushing for a pay package potentially worth $1 trillion, arguing that he must control the robots to prevent them from falling into the wrong hands.
Audacious? Absolutely. But remember—his last pay package was just as wild, and he hit those targets. Shareholders scoffed at first and wanted to back out, but eventually paid up.
Who knows? We might just be witnessing the rise of the world’s first trillionaire.