SpaceX Falls On AI Spending Fears | Daybreak Europe 8/5/2026

Bloomberg Television

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Video Summary

Global stocks hit a record high, fueled by renewed enthusiasm for the AI trade, while SpaceX's debut earnings disappointed investors, sending its shares down. Oil prices dipped as President Trump indicated progress in talks with Iran, with Axios reporting a potential deal announcement as soon as today. Meanwhile, Novo Nordisk's new weight loss pill, while in high demand, fell short of some lofty expectations, impacting its stock. Siemens Energy, however, reported record orders, signaling strong demand for its energy infrastructure solutions, and is targeting the upper end of its profit guidance.

In the tech sector, AMD shares also declined following its earnings report, despite beating expectations, highlighting the market's increasingly stringent demands. The broader market sentiment is buoyed by easing geopolitical tensions, particularly the potential U.S.-Iran agreement concerning the Strait of Hormuz, which is expected to stabilize oil prices and support Treasury yields. This geopolitical backdrop, coupled with strong performance in Asian chip stocks like Samsung and SK Hynix, contributed to the global equity rally.

Short Highlights

Global stocks reach record highs.
SpaceX shares fall after debut earnings.
Oil prices decline amid U.S.-Iran talks.
Siemens Energy reports record orders.
AMD shares drop post-earnings.
Novo Nordisk's weight loss pill misses some expectations.
Asian stocks rally, led by chipmakers.
U.S. and Iran nearing a deal on the Strait of Hormuz.

Key Details

Global Stocks Climb to Record Highs [0:05]

Traders renewed bets on the AI trade, boosting global stocks.
SpaceX's debut earnings failed to meet investor expectations, causing its shares to fall.

"Global stocks climb to a record as traders renew bets on the AI trade, but SpaceX fails to take off with investors."

Oil Prices Slide on U.S.-Iran Talks [0:12]

Oil prices decreased as President Trump stated that talks with Iran were progressing positively.
Axios reported that the U.S. aimed to announce a deal as early as today.

"Oil slides south as President Trump says talks with Iran are moving along nicely."

Novo Nordisk's Weight Loss Pill Underwhelms [0:17]

Novo Nordisk's new weight loss pill did not meet high expectations.

"Plus slim pickings for Novo Nordisk as the drug giant's new weight loss pill fails to top expectations."

Siemens Energy Reports Record Orders [0:21]

Siemens Energy announced strong earnings, with record orders.
The company is expected to speak with its CEO, Christian Bruch, later in the program.

"Well, a busy day for European earnings today and we'll be speaking to top executives from Siemens Energy and the chipmaker Infineon."

Asian Stocks Rally on Chipmaker Strength [0:30]

Asian stocks snapped a two-day rally, with the MSCI Pacific index up over 2%.
Chip stocks, including Samsung and SK Hynix, led the gains in South Korea.

"Asian stocks snapping a two-day rally. So the MSCI Pacific index up more than 2% as things stand."

SpaceX Earnings and AI Spending Concerns [1:15]

SpaceX's stock fell in extended trading due to higher-than-expected spending on its AI business.
CEO Elon Musk plans to accelerate AI development, incorporating all SpaceX data into Grok.

"We expect the cadence of AI development to improve dramatically."

Analysis of SpaceX's Financials [1:39]

For every dollar of revenue, SpaceX is burning two dollars of cash due to significant capital expenditures (capex).
The company posted $7.8 billion in revenue but burned over $16 billion in cash.

"The problem is, just putting it simply, for every one dollar of revenue the entire company makes, they're burning two dollars of cash."

AMD Shares Decline After Earnings [1:58]

AMD shares fell approximately 9% in late trading following its earnings report.
The market's expectations were higher than what AMD delivered, despite solid numbers.

"But again, it comes back to expectations. Better travel and arrive in terms of the stock performance."

U.S.-Iran Deal on Strait of Hormuz [2:28]

President Trump stated the Strait of Hormuz would open soon, following an Axios report on a potential U.S.-Iran-Oman agreement.
The deal aims to reopen the shipping lane, with an announcement possibly today.

"President Trump says the Strait of Hormuz will open very soon."

Details of the Potential Strait of Hormuz Agreement [4:34]

Inbound vessels would use a northern lane near Iran, while outbound vessels would use Omani waters.
Iran and Oman would work to clear mines from the shipping lane for two-way traffic over the next 60 days, with no tolls charged.

"Axios also reporting that no tolls or fees would be charged over the next 60 days and that Iran and Oman would also work to clear mines from a shipping lane for two-way traffic."

Siemens Energy CEO Discusses Outlook [6:43]

CEO Christian Bruch expressed confidence due to strong market demand and the team's ability to convert backlog into revenue and profits.
He clarified that only 20% of Siemens Energy's Q3 orders were related to AI, emphasizing broader market demand.

"First of all, I mean, we obviously excited about a growing market and the market demand. But what gives us a confidence is the capability of the team at Siemens Energy to convert the backlog."

Infineon Reports Strong Revenue and Growth Drivers [8:00]

Infineon forecast a strong final quarter with revenue growth of 13% quarter-over-quarter and 19% year-over-year.
The company highlighted AI data center business as a key growth driver, expecting over $2.5 billion in AI data center revenues next year.

"The magnitude of the business to put into perspective is give or take 10% of our group revenues this year in AI data center. So more than 1.6 billion doubling from last year."