Next week on the stock market

Can Tesla build on a positive delivery surprise?

Tesla heads into third-quarter results with some momentum.

Vehicle deliveries comfortably beat expectations and were only slightly down on last year's tax-credit-fuelled record. Deliveries over the past 12 months are also growing again after a long run of declines, which supports the argument that volumes have turned a corner.

Turning that into profit is the harder part. Markets expect revenue of $27.9bn – a touch lower than last year. Earnings per share are expected to drop 14% to $0.43, with forecasts trimmed by a similar amount over the past three months.

Last quarter showed the problem. Revenue rose by a quarter, but operating profit more than halved as costs ran ahead. Incentives and rising spending elsewhere are likely to weigh on margins again.

The growth projects matter more for the valuation.

Investors will want updates on how far Robotaxi is expanding, when the Cybercab rollout picks up, and how many people are taking up Full Self-Driving, which reached 1.5 million paid users last quarter. Optimus (the humanoid robot) has gone quiet, so any sign of progress would be welcome.

In our view, the car business is stabilising. But with capex set to top $25bn this year, Tesla needs to show progress in the areas that really drive its lofty valuation.

Meta heads into earnings with an AI tailwind at its back

Meta heads into third-quarter results with a very different story from three months ago.

Last quarter's headline earnings miss, caused by one-off legal and restructuring charges, hid a solid core business. The real change came in September with the launch of Muse, Meta's AI agent that can shop, book travel and manage emails for users. Early take-up has been strong, and the shares have rallied sharply since.

Markets expect revenue of $63.3bn, up 24% and at the top end of guidance. But earnings per share are expected to fall 12% to $6.35, with forecasts cut by around 10% over the past three months as costs climb. Spending is the sticking point. Capex is guided to $130-145bn this year, and with investment often a touchy point for Meta, investors will want early clues on next year's budget.

Muse will dominate the call. Investors will want user numbers, early take-up of the paid tiers, and how Meta plans to make money from shopping and bookings over time.

In our view, the investment case has shifted. With sentiment back on the front foot, the next leg relies on Meta getting earnings back to growth.

Netflix needs to show that growth has legs

Netflix heads into third-quarter results with plenty to prove. July's update kept full-year guidance largely unchanged despite earlier price rises, raising questions about whether growth is slowing faster than expected. Sentiment has cooled since, and the shares have lost ground heading into results.

Markets expect revenue of $12.9bn, up 12%, and adjusted earnings per share of $0.82, up 40%. Forecasts have edged lower over the past three months. Margins are the number to watch. Netflix held its 31.5% full-year target in July, and a nudge higher would go a long way to easing nerves.

Investors will also want early clues on next year, and on whether price rises become an annual habit. Engagement remains the big unknown. In our view, the brand and content engine remain best in class. With expectations reset lower, the bar looks more achievable, but Netflix needs to show growth has legs.

Sainsbury’s looking to maintain momentum in Food

Sainsbury’s heads into its half-year results next week with good momentum. A stronger fresh food offering and an expanded Taste the Difference range helped drive Grocery sales higher over the first quarter, with Sainsbury's gaining market share. The Taste the Difference range is being stretched into higher price points to attract more premium customers, and we’re optimistic it will be beneficial for margins as well.

The group is also doubling down on food. The Argos sale remains on track for February 2027, and some General Merchandise & Clothing space is being handed over to food. We see both as positives, reducing exposure to discretionary spending while elevated energy prices squeeze household budgets.

Markets expect half-year underlying operating profit to rise 3.5% to £524mn next week, which would put Sainsbury's slightly ahead of the halfway mark on its full-year guidance. With further cost savings and the peak Christmas trading period still to come, we see scope for full-year guidance to be nudged slightly higher.