🚀 SpaceX first earnings call tomorrow

Market Overview
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Year To Date Performances:

1. SpaceX is set to report its first quarterly earnings as a public company on Tuesday after losing over $500 billion USD in market capitalization—a drop exceeding 50% from its post-IPO peak to a $1.4 trillion USD valuation. The company faces mounting quarterly cash burns, high debt levels, and pressure from upcoming lock-up expirations, which have driven short sellers to log over $8.3 billion USD in paper profits since the June 12 initial public offering. SpaceX's long-term thesis relies heavily on reducing launch costs through its 400-foot Starship rocket—which is slated to begin orbital payload deliveries in the second half of 2026—to expand Starlink, its sole profitable segment. To offset substantial capital expenditures from its merger with xAI and pending $60 billion USD acquisition of Cursor, SpaceX is leasing out excess compute capacity via major deals, including a $920 million USD monthly agreement with Google and contracts with Anthropic. While analysts from firms like Bernstein, Cantor Fitzgerald, and New Street Research acknowledge near-term volatility, they maintain bullish price targets above $165 USD, viewing the post-IPO sell-off as a long-term entry point backed by SpaceX's hosted-compute revenue and launch infrastructure moat.

2. As the war in Iran enters its sixth month, surging California diesel prices—which have climbed from $5.10 to $6.92 per gallon—are creating compounding cost pressures across the entire U.S. supply chain. A global refining deficit of roughly 8% of total diesel demand, caused by the conflict in the Middle East and ongoing strikes on Russian energy infrastructure, has severely tightened refined product markets. ExxonMobil CEO Darren Woods warned that these global refining constraints will persist even as shipping through the Strait of Hormuz eventually resumes. Because nearly one-third of all U.S. containership imports and exports pass through California's San Pedro Bay port complex—where local fuel prices are structurally elevated by strict state environmental regulations, limited pipeline connectivity, and shrinking refining capacity—trucks and trains paying West Coast rates are inflating freight costs and transportation margins nationwide, ultimately driving up final retail shelf prices for everyday consumer goods.

3. Amazon's market capitalization surpassed $3 trillion USD for the first time following a post-earnings stock rally driven by robust artificial intelligence demand and strong cloud computing growth. For the second quarter, the company delivered $200.61 billion USD in revenue—beating Wall Street expectations of $196.47 billion USD—and reported adjusted earnings per share of $1.97 USD versus $1.82 USD expected, anchored by Amazon Web Services (AWS) revenue surging to $42.2 billion USD. To keep pace with overwhelming cloud demand that CEO Andy Jassy noted will outstrip capacity through at least 2027, Amazon raised its full-year 2026 capital expenditure forecast to $220 billion USD from $200 billion USD, driven in part by escalating memory chip costs linked to the ongoing AI buildout. The historic valuation milestone places Amazon alongside an elite tier of tech giants, echoing strong cloud expansion seen across competitors like Microsoft Azure and Google Cloud.

   Headlines

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