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SpaceX Shares Drop 2.9% on Weak Guidance From Key Partner Intel

SpaceX shares declined 2.9% following disappointing fourth-quarter guidance from commercial partner Intel and regulatory warnings regarding a potential merger with Tesla. Intel beat third-quarter estimates with $16.5 billion in revenue, but projected fourth-quarter earnings of $0.25 per share on up to $16.0 billion in revenue, missing Wall Street expectations of $0.44 per share and $17.1 billion. The weak outlook dampened optimism around Intel's partnership with SpaceX. Additional pressure followed a Bank of America note warning that Chinese antimonopoly authorities could challenge a SpaceX-Tesla merger because half of Tesla's vehicle manufacturing occurs in Shanghai.

Category

SpaceX

Sentiment

Bearish

Event

Earnings guidance

Reading time

1 min