Episode summary
SpaceX Beats Estimates, Netflix Forecasts a Slowdown | Bloomberg Businessweek
Bloomberg Businessweek Daily
· · Hosts: Carol Massar, Tim Stenovec · Guests: Ed Ludlow, George Ferguson, Brody Ford, Prashant Gopal
Summary
Netflix’s latest quarter showed sales that were close to expectations but still short of the market’s bar, and the company guided to fourth-quarter revenue of $13.4 billion versus the $13.5 billion Wall Street expected. The hosts and guests said the bigger issue is not a single miss but a pattern: sales growth is set to slow for a fourth straight quarter, the ad business is underperforming, and the company’s recent layoffs and leadership changes have not yet translated into better results. Netflix shares fell sharply in after-hours trading as investors focused on weaker momentum rather than headline earnings strength.
SpaceX delivered the opposite kind of reaction, with third-quarter revenue of $14.58 billion beating the $12.87 billion estimate and net income of $4.4 billion far above forecasts. The discussion centered on how that profit strength coexists with heavy capital spending, and whether the company’s real catalyst is still ahead in Starship, data centers in space, and direct-to-cell mobile service. The guests argued that Starlink’s scale and improving profitability are important near-term drivers, but the broader SpaceX equity story still depends on execution and launch cadence.
The episode also covered United Airlines’ post-earnings decline, where higher fuel costs squeezed margins, and a housing segment that is being frozen by mortgage rates above 7%. A real-estate reporter said affluent buyers and builder-heavy markets are still finding opportunities, even as overall homebuilder confidence fell to a 14-year low.
Key takeaways
- Netflix guided to $13.4 billion in fourth-quarter revenue, below the $13.5 billion consensus, and the guests said sales growth is likely to slow for a fourth straight quarter.
- Ed Ludlow argued that Netflix’s recent layoffs and management changes have not yet produced the turnaround investors want, especially in content retention across seasons.
- SpaceX reported $4.4 billion in net income versus an estimated $1.88 billion, with third-quarter revenue of $14.58 billion beating expectations by a wide margin.
- George Ferguson said Starlink’s profitability and scale are improving, but the real long-term catalyst for SpaceX remains Starship and faster launch cadence.
- United Airlines’ stock fell after the close because fuel expense pressures are still outpacing revenue improvement, according to George Ferguson.
- The housing market remains stalled above 7% mortgage rates, though the reporter said cash buyers, luxury homes, and builder-heavy markets still offer pockets of strength.
Notable quotes
“sales growth is going to decline for a fourth straight quarter”
“there's no upside hence the the stock down 6%”
“net income, $4.4 billion. Uh the estimate was for 1.8”
“Starlink should have a fair amount of scalability to it”
“the future of this business is Starship and not Falcon 9”
How the episode opens
Bloomberg Audio Studios, podcasts, radio, news. This is Bloomberg Business Week Daily, reporting from the magazine that helps global leaders stay ahead with insight on the people, companies, and trends shaping today's complex economy. Plus, global business, finance, and tech news as it happens. The Bloomberg Business Week Daily podcast with Carol Masser and Tim Stenc.
Welcome in everyone. I'm Alexis Kristoffers along with Nora Melinda on Bloomberg Business Week Daily. Carol and Tim have the day off.
Netflix out with earnings uh just seconds ago. It sees fourth quarter revenue of 13.4 billion. That is less than 13.5 billion uh Wall Street was expecting.
Netflix says engagement is healthy despite a 2026 price hikes and we have got the market reacting swiftly. Uh shares of Netflix down about 7 and a half% here. Norah and I know Netflix isn't the only uh company out with earnings after the bell.
Not at all. I mean we have a lot of companies that we're keeping an eye on after the closing bell. United coming out.
Space X uh if you want to kind of dig into what's going on there. We're keeping an eye on SpaceX. It is higher in the postmarket trade by about 1%.
Uh we did see third quarter revenue for SpaceX coming in at about $14.58 billion. That all against estimates for 12.87 billion. And you know, of course, there's so much focus right now on capex.
Third quarter capex coming in at 19.59 billion. That's against estimates of 19.6 billion.
Okay, I want to uh dig into Netflix a little bit more now because again, the stock getting hit here in the after hours trade uh after its earnings hit the tape. Ed Ledllo, Bloomberg Tech host, uh, joining us now. I at first blush, doesn't look too good.
From the episode’s captions: roughly the first two minutes, lightly cleaned. Keep watching on YouTube →
Topics
- netflix earnings
- netflix sales slowdown forecast
- spacex revenue beat
- earnings guidance and market reaction
- aerospace and defense outlook
Companies and tickers mentioned
- NFLX
- Netflix
- SpaceX
Watch the episode
Watch “SpaceX Beats Estimates, Netflix Forecasts a Slowdown | Bloomberg Businessweek” on YouTube
Summary, takeaways and quote selection by Octagon. Quotes are short excerpts; the full conversation is in the episode.
More from Bloomberg Businessweek Daily
-
Bloomberg Businessweek Weekend - November 13th, 2026 | Bloomberg Businessweek -
Inside Jensen Huang’s Final Hours as Nvidia CEO | Bloomberg Businessweek -
Jensen Huang's Exit Kicks Off Nvidia Strategy Reset | Bloomberg Businessweek -
Special Episode: Bobby Jain on Why He Chose Millennium Again | Bloomberg Businessweek -
Bloomberg Businessweek Daily Podcast: Jensen’s Nvidia Departure -
Take-Two Releasing Long-Awaited Grand Theft Auto VI Next Week | Bloomberg Businessweek
Bloomberg Businessweek Daily, this episode and its artwork belong to Bloomberg. Octagon is not affiliated with the show; this page is an independent summary.
