Tesla and Meta Report Tomorrow Night. Here's What Matters for Your Money.
Two of the market's most-watched stocks report on the same night. For both, the big question isn't last quarter's profit. It's how much they plan to spend on AI and robots.
Topics: Stocks
Most earnings reports are about the last three months. Tomorrow night's two big ones are really about the next three years.
Tesla and Meta both report results on Wednesday, Oct. 21, after the market closes. Their stocks are heading into it in opposite moods. In afternoon trading today:
- Tesla (TSLA): up about 1.9%, near $375, after a 3.8% jump on Monday
- Meta (META): down about 2.3%, near $689
Tesla: the cars are the small part
Wall Street expects Tesla to earn about 44 cents a share on roughly $28 billion in revenue. That would be down from about 50 cents a year ago.
The car business is treading water. Tesla delivered 486,532 vehicles last quarter, a bit more than forecast but 2% fewer than a year earlier, when buyers rushed to beat the end of the federal EV tax credit. Investors will watch the profit margin on each car, which has been under pressure.
But the stock rarely moves on car numbers anymore. Analysts at Goldman Sachs say updates on Tesla's robotaxis and its Optimus humanoid robot are likely to matter more to the stock than the quarter itself. That's the story Elon Musk sells, and it's why Tesla is valued far above other carmakers.
The stock has also been lifted by talk that SpaceX could try to merge with Tesla. That's speculation. No deal has been announced.
Where it stands: Tesla is still down about 17% this year.
Meta: the ads are fine. The spending is the question.
Meta, the owner of Facebook and Instagram, is expected to report about $63 billion in revenue. It told investors to expect $61 billion to $64 billion, and its ad business has kept growing.
The number that will move the stock is spending. Meta expects to spend $130 billion to $145 billion this year on data centers, chips and equipment, about double last year's $72 billion. Evercore ISI expects that to climb by roughly another $70 billion in 2027.
That's why the stock is down about 11% from its September high. Investors believe in the AI. They're less sure when all that spending will pay off.
What it means for you
- If you own an S&P 500 or Nasdaq index fund, you own both. Tesla and Meta are among the biggest companies in the market, so a big move in either one shows up in your account.
- Expect big swings either way. Both stocks have made big moves after past reports. One night's reaction isn't a verdict on the company.
- Listen for the long-term numbers. For Meta, that's next year's spending plan. For Tesla, it's any timeline for robotaxis and robots that investors can actually check.
What to watch
- Wed., Oct. 21, after the close: Tesla and Meta report. Tesla's call starts at 5:30 p.m. ET, Meta's at 4:30 p.m. ET.
- Wed., Oct. 28: the Fed's next interest-rate decision.
- Thu., Oct. 29: Amazon and Intel report.
