U.S. stock futures edged higher on Friday as investors weighed conflicting reports on OpenAI's financial trajectory against Delta Air Lines' upcoming earnings release. The market is currently digesting a Financial Times report stating that OpenAI's annualized revenue stood at approximately $50 billion at the end of September, a figure short of the $70 billion previously signaled. This discrepancy weighed on technology stocks, even as broader index futures pointed upward.
By 03:04 ET, Dow futures had risen by 33 points, or 0.1%, while S&P 500 futures advanced 25 points, or 0.3%. Nasdaq 100 futures jumped by 243 points, or 0.8%. This pre-market activity followed a mixed session on Thursday, where the Dow Jones Industrial Average gained 0.1%, but the S&P 500 and Nasdaq Composite fell by 0.47% and 1.25%, respectively.
A Bloomberg News report later buoyed Nasdaq 100 futures by stating that OpenAI expects to reach or exceed $70 billion in annualized revenue by the end of the year. Bloomberg attributed this anticipated growth chiefly to the company's enterprise business. For AI startups like OpenAI and rival Anthropic, annualized revenues serve as a critical metric for gauging overall AI demand and the necessity for additional computing infrastructure.
Despite the revenue projections, OpenAI's path to profitability remains unclear. Recent reports indicate the company is on track to slip to a full-year loss, with projections that it will burn $280 billion by 2030. Traders are closely scrutinizing the sustainability of AI financing amid news of a wave of AI-linked debt deals used to fund massive infrastructure spending.
Investors also await Delta Air Lines' quarterly earnings before the opening bell. According to Bloomberg consensus estimates, Delta is expected to post adjusted revenue of $17.66 billion and adjusted per-share income of $1.82 for the third quarter. In July, Delta reiterated its full-year profit outlook and issued stronger-than-anticipated third-quarter guidance, expecting to maintain fare increases linked to a spike in fuel costs. The carrier predicted its fuel bill would be roughly $4 billion higher this year compared to the prior year, flagging energy price volatility as a major risk to its financial trajectory.
A University of Michigan consumer sentiment report for October is also scheduled for release. The index is tipped to edge down to 47.5 from a four-month low of 48.1 in September. Joanne Hsu, Surveys of Consumers Director at the University of Michigan, noted that September respondents emphasized jitters over continued price climbs, while buying conditions for durable goods improved slightly due to a perception that current purchases would help avoid future higher prices.
In other market moves, U.S. mobile tower stocks rose in extended hours trading after SpaceX agreed to buy a nationwide block of low-band spectrum for about $8 billion in cash from private equity firm Grain Management, according to the Wall Street Journal. Bernstein said the acquisition keeps alive the possibility that SpaceX builds a ground network. American Tower, Crown Castle, and SBA Communications rose between 3% and 4.5% after-hours. SpaceX CEO Elon Musk stated that this is the last critical piece of spectrum needed for SpaceX to provide complete phone coverage in America.