{"id":73395,"date":"2026-10-21T17:08:14","date_gmt":"2026-10-21T21:08:14","guid":{"rendered":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/tech-rally-ignited-by-meta-and-spacex-earnings-as-ai-monetization-concerns-ease\/73395\/"},"modified":"2026-10-21T17:08:14","modified_gmt":"2026-10-21T21:08:14","slug":"tech-rally-ignited-by-meta-and-spacex-earnings-as-ai-monetization-concerns-ease","status":"publish","type":"post","link":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/tech-rally-ignited-by-meta-and-spacex-earnings-as-ai-monetization-concerns-ease\/73395\/","title":{"rendered":"Tech Rally Ignited by Meta and SpaceX Earnings as AI Monetization Concerns Ease"},"content":{"rendered":"<h2>Key Takeaways<\/h2>\n<ul>\n<li><strong>Meta (<a href=\"\/stock\/META\">META<\/a>) reveals &quot;Muse AI&quot; has reached 10 million users in North America within 45 days<\/strong>, with management projecting revenue per user to eventually exceed the hundreds of dollars generated by its current Family of Apps.<\/li>\n<li><strong>SpaceX shares surged 7.8% following a blockbuster earnings report<\/strong>, triggering a broader technology rally and validating the sustainability of the global AI investment boom.<\/li>\n<li><strong>Tesla (<a href=\"\/stock\/TSLA\">TSLA<\/a>) shares climbed in late trading<\/strong> after posting better-than-expected results, further bolstered by Elon Musk\u2019s public support for a potential merger between the EV maker and SpaceX.<\/li>\n<li><strong>Global engagement on Meta platforms reached record highs<\/strong>, with Instagram time-spent seeing double-digit year-over-year growth and Facebook Reels hitting all-time highs in the U.S. and globally.<\/li>\n<li><strong>Geopolitical risks resurfaced<\/strong> as Iran issued threats against U.S. political targets via Fars News, citing potential retaliation if military strikes against the nation resume.<\/li>\n<\/ul>\n<h2>Meta Unveils &quot;Muse&quot; Ecosystem and Record Engagement<\/h2>\n<p>Meta (<a href=\"\/stock\/META\">META<\/a>) CEO Mark Zuckerberg announced the company is set to ship <strong>Muse Charm<\/strong>, a new hardware offering, as sales of its smart glasses continue to grow rapidly. The company expects the &quot;Muse&quot; AI ecosystem to drive a significant increase in <strong>paid subscriptions<\/strong>, serving as a new pillar for growth alongside its traditional ad-supported model.<\/p>\n<p>Management highlighted that more than <strong>10 million people in the U.S. and Canada<\/strong> set up Muse personal agents in just six weeks. Zuckerberg noted that while existing Family of Apps users generate <strong>several hundred dollars in annual revenue per user<\/strong>, he expects Muse to eventually surpass that level, potentially transforming the company&#39;s financial profile.<\/p>\n<p>On the engagement front, Meta (<a href=\"\/stock\/META\">META<\/a>) CFO reported that <strong>Instagram time spent reached an all-time high<\/strong> in Q3, growing by double digits year-over-year. Facebook Reels also saw record-breaking engagement both in the U.S. and globally, suggesting that the company&#39;s AI-driven content recommendations are successfully retaining users.<\/p>\n<h2>SpaceX and Tesla Lead Tech Sector Rebound<\/h2>\n<p>Technology stocks saw a significant lift as <strong>SpaceX shares jumped 7.8%<\/strong> following a stellar earnings report that eased market anxieties. The performance of the private aerospace giant helped soothe investor concerns that heavy <strong>upfront AI spending<\/strong> might not yield productivity gains or profits quickly enough to justify the current investment boom.<\/p>\n<p>Tesla (<a href=\"\/stock\/TSLA\">TSLA<\/a>) also benefited from the positive sentiment, rising in late trading after reporting <strong>better-than-expected financial results<\/strong>. Investor enthusiasm was further amplified by Elon Musk\u2019s comments regarding a <strong>potential merger between Tesla and SpaceX<\/strong>, a move that analysts suggest could create a consolidated powerhouse in AI and engineering.<\/p>\n<p><em>The rally marks a shift in market sentiment<\/em>, as investors had grown increasingly skeptical of the &quot;AI bubble&quot; in recent weeks. The combination of Meta\u2019s (<a href=\"\/stock\/META\">META<\/a>) strong revenue forecast and SpaceX\u2019s earnings suggests that the massive capital expenditures in infrastructure are beginning to translate into <strong>tangible top-line growth<\/strong>.<\/p>\n<h2>Geopolitical Tensions and Market Risks<\/h2>\n<p>Despite the optimism in the tech sector, geopolitical headlines introduced a layer of volatility. <strong>Iran has threatened U.S. political targets<\/strong> if military strikes against the country resume, according to a report from Fars News.<\/p>\n<p><em>Market participants are monitoring these developments closely<\/em>, as any escalation in the Middle East could impact energy prices and broader market stability. While the tech rally remains the primary driver of current price action, the threat of renewed conflict remains a significant <strong>tail risk for global markets<\/strong> heading into the final quarter of the year.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Key Takeaways Meta (META) reveals &quot;Muse AI&quot; has reached 10 million users in North America within 45 days, with management 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