The Transcript

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Netflix, Tesla & Meta among those reporting next week:

💻 Tech & Media: $NFLX $TSLA $META $IBM $SPOT
🏭 Industrials: $GE $RTX $LMT $GM $MMM
🛒 Consumer: $PG $KO $PM
🏦 Financials: $COF $AXP $MCO
⚡ Energy: $XOM $NEE $HAL
📡 Telcos: $T $TMUS

More at https://t.co/kB7gcAoPZ1

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$AMAT Applied Materials CEO: "Agentic AI consumes about 2x to 4x more wafers than a generative AI pod.”

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$AMAT Applied Materials CEO: “The fastest-growing wafer fab equipment segments in the industry, driven by AI, are leading-edge foundry logic, DRAM and advanced packaging. And in all of those areas, Applied is #1 and positioned to outperform.”

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$AMAT Applied Materials CEO: “The fastest-growing wafer fab equipment segments in the industry, driven by AI, are leading-edge foundry logic, DRAM and advanced packaging. And in all of those areas, Applied is #1 and positioned to outperform.”

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$AMAT Applied Materials CEO: "Agentic AI consumes about 2x to 4x more wafers than a generative AI pod.”

[The Transcript @TheTranscript_]

Meta, IBM, Texas Instruments and Lam Research among the major companies reporting quarterly results after hours today:

$META $IBM $TXN $LRCX $URI $PKG $CSX $LVS $KMI $CCI $MEDP $RS $LUV $KNX $PNFP $EGP $TSLA

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AT&T CEO: "Our asset base positions us well for the AI era, with a leading position in fiber – the best technology available"

$T: -6% PM

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NextEra Energy CEO: "...delivered strong third-quarter results..."

$NEE: +1% PM

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Thermo Fisher CEO: "We are very pleased to deliver another excellent quarter, with outstanding financial performance on both the top and bottom line"

$TMO: -2% PM

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Moody's CEO: "...another quarter of strong profitability and earnings growth..."

$MCO: -3% PM

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Danaher CEO: "We delivered better-than-expected third quarter revenue, earnings and cash flow, and are encouraged by the improving trends we saw across our end markets."

$DHR: -3% PM

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$META CEO on Muse use cases: "The most common use case for Muse is shopping. With more than a quarter of people who are using Muse engaging in this with an average purchase size of over $200, Plaid told us that they hadn't seen activity like they're seeing with their connector on any other service before. And in the first week, we had to work with Stripe to raise credit limits since the volumes were above what any of us expected. Beyond shopping, the most common connectors are for personal productivity and connecting Muse to your other services like email and calendar."

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$META CEO on Muse: "Engagement and retention are also off to a strong start. About 25% of people who have set up Muse use it on any given day. For our earliest adopters, the longer that they use Muse, the better that retention seems to get. So to put this in perspective, this is more than twice the level that Threads started at, or where we believe that other AI apps started at as well. "

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$META CEO: "Threads has now overtaken X in monthly actives and continues to grow quickly. "

Who is using Threads?

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$META CEO: "From a business perspective, the average revenue per American user for our existing....Family of Apps users—is several hundreds of dollars annually, and we expect that Muse will reach an even higher level over time due to the amount of commerce that we already see taking place.

This will take some time, but we're starting to work on this now."

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$META CFO on Muse: "We don't have sort of specific numbers to share around the cost structure of Muse today, but of course it is, as Mark said, pretty compute expensive. And making sure that we are focused on compute efficiency is going to be one of the key vectors towards being able to both scale Muse and grow it into the business that we want"

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$META CFO: "We're also building several new AI businesses, and we expect that those can begin contributing incremental revenue in 2027. But more importantly, they can scale meaningfully over time.

And those will include monetizing our AI products through subscriptions, transactions, advertising, developing, enterprise offerings, as we talked about in one of the earlier questions"

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$META CEO on Muse:

"....we have more than 10 million people in the US and Canada who have set it up. But I think one of the biggest constraints so far is that, because this is a compute-intensive service to run, we have not launched it globally yet"

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$META Meta CFO: Q3 CapEx reached $34.9B, contributing to negative $2.1B FCF

"Capital expenditures, including principal payments on financed leases, were $34.9 billion, driven by investments in servers, data centers, and network infrastructure. Free cash flow was negative $2.1 billion. We ended the quarter with $82.4 billion in cash and marketable securities and $83.7 billion in debt."

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Lam Research: "...record revenue, profit, and earnings per share in the September quarter.."

$LRCX: -5% AH

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Texas Instruments CEO: "Revenue increased 11% sequentially and 28% from the same quarter a year ago with continued broad growth in industrial, automotive and data center"

$TXN: -0.2% AH