Stock Movers: Tesla, T-Mobile, and IBM Earnings Analysis

Tesla's Profit Decline Despite Record Sales

• 📉 Tesla's stock fell nearly 4% as profit dropped for the fourth consecutive quarter, despite a record number of vehicle sales.
• 🤖 Elon Musk discussed humanoid robots, AI programs, and self-driving technology on the earnings call, but failed to address how Tesla will revive its core EV business.
• ⚠️ Operating profit saw a 40% drop, with operating expenses soaring 50% to $3.4 billion and tariff costs exceeding $400 million.

T-Mobile's Subscriber Growth and Outlook

• 📈 T-Mobile gained about a million new mobile phone subscribers, raising its full-year outlook, largely due to the acquisition of US Cellular.
• 📱 This marks their highest third-quarter subscriber growth in over a decade, potentially boosted by the Apple iPhone 17 release.
• 🎯 The company expects to add 3.3 million wireless subscribers and 130,000 fiber home internet customers for the year.

IBM's Earnings Hit and Red Hat Performance

• 📉 IBM shares dropped more than 7% due to disappointing revenue in key software categories, particularly the Red Hat hybrid cloud unit.
• ☁️ Sales in the hybrid cloud unit, which helps customers manage data across different computing equipment, increased 14%, a slowdown from the previous period and below analyst estimates.
• 💡 Investors view these categories as critical for growth, and the slowdown impacted the stock, which had previously risen 30% this year partly due to AI interest and the Red Hat acquisition.