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- Software Stocks Are Getting Crushed Again After Hours
Fortinet and ServiceNow both beat revenue estimates after the close on October 28, 2026, yet their shares fell sharply: Fortinet dropped 25.71% after hours to $129.33 and ServiceNow fell 18.13% to $122.91, dragging many software and cybersecurity stocks lower. Fortinet's adjusted EPS of $0.91 beat the $0.86 consensus, but services revenue grew only 13% to $1.31 billion, prompting a cut to its full-year service revenue forecast and slowing total revenue growth to 20% from 26%. ServiceNow's revenue rose 20.5% to $4.106 billion, but adjusted EPS of $1.00 missed the $1.02 consensus, and its guidance for December-quarter cRPO growth of 18.5% was below the 21% in the September quarter. The article calls this the second major software selloff of 2026.
- CrowdStrike Is Up 124% in 2026, Fortinet Is Up 142%: Take Profits, or Hold On for the Ride?
CrowdStrike (CRWD) trades at $262.31, up 124% this year, while Fortinet (FTNT) is up 142% at $192.49 and Palo Alto Networks (PANW) is up 118% at $401. The First Trust NASDAQ Cybersecurity ETF (CIBR) is up 52% at $107.98 and the Invesco QQQ Trust is up 21% at $745.75, well behind the leaders. On its August 26 call for fiscal Q2 2027, CrowdStrike reported record net new ARR of $333 million, up 51%, ending ARR of $5.84 billion, and revenue of $1.47 billion, up 26%, and it raised full-year net new ARR growth guidance to 34% at the midpoint. Skeptics note the stock has run far ahead of its sector fund and that a solid quarter could still disappoint if the price already reflects acceleration. Investors are watching whether the raised guidance holds next quarter and how management describes AI-driven demand.
- Dow Jones Futures Fall; Microsoft Rises, But Google, ServiceNow, Fortinet Dive On Earnings
- Dow Jones Futures" Microsoft Rises, But Google, ServiceNow, Fortinet Dive On Earnings
- Dow Jones Futures: Microsoft Rises Late, But Google, ServiceNow And Fortinet Dive On Earnings
- Here Are Thursday's Top Wall Street Analyst Research Calls: Alphabet, Boston Scientific, eBay, Fervo Energy, Fortinet, Hilton Worldwide Holdings, Lennox International, Palantir Technologies, and More
Alphabet fell almost 10% after hours after missing revenue expectations, while Microsoft rose 3% after hours following strong cloud growth and beats on earnings and revenue, and Amazon's third-quarter results were due after the close. The Federal Reserve held rates steady, and the article notes the Fed could raise rates by 25 basis points at its December meeting if inflation stays elevated. On Wednesday, the S&P 500 closed at 7,743 and the Nasdaq at 26,549, the 10-year Treasury note closed at 5.02%, and Brent crude closed at $114.10. Gold closed at $4,066, and Bitcoin traded around $80,082 at 8 AM EDT. Among the analyst moves, Wells Fargo raised eBay to Equal Weight from Underweight with a $106 target price, Mizuho upgraded Hilton to Outperform with a $421 target, and Jefferies downgraded Boston Scientific to Hold from Buy with a $45 target.
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Latest news
- Microsoft beat estimates while Google looks at a value hit, and rising risks at Nvidia
The 8:30 show covers the day's top stories, including earnings from Microsoft (MSFT) and Alphabet (GOOGL)(GOOG), mounting risks at Nvidia (NVDA), and the new touchscreen laptop Apple (AAPL) just debuted.
- European Central Bank keeps key interest rate on hold at 2.5%
The European Central Bank held its deposit facility rate at 2.5% on Thursday, as expected, after a 25 basis point hike in September, even though euro zone headline inflation rose to 3.8% last month, the highest since September 2023. The Governing Council said rising energy prices pose upside risks to inflation and downside risks to growth, while underlying inflation and wages are broadly stable and financing conditions have tightened. Energy price inflation reached 18.8% amid Middle East turbulence. Deutsche Bank's Mark Wall said the policy path is harder to predict and expected one more hike to 2.75% in December, probably the end of the hiking cycle, while Christine Lagarde is still president. He added that the institution is bigger than any one person, but uncertainty remains about decisions next year after Lagarde's announced departure.
- Tech stocks hit hard after Samsung, Fortinet, and ServiceNow miss earnings
Samsung expects capital expenditure to rise 60% to $63 billion this year as it competes with SK Hynix and Micron, but its chip division operating income came in 2% below estimates and it is holding off on future shareholder payout plans until January. Fortinet's weak results hit cybersecurity stocks, and ServiceNow showed slowing bookings growth. A Bloomberg report said Marvell is in talks to buy Lumentum in a big deal, and Marvell shares fell sharply. The hosts said concerns over AI spending, financing costs, and Alphabet's business model are real, not just sentiment.
- Alphabet heads for a $400 billion drop in market value, the biggest in its history
Alphabet (GOOGL) fell about 13% in early trading Thursday after third-quarter results, putting it on track to erase more than $400 billion in market value, the second-biggest one-day loss ever for a US-listed company behind Nvidia's roughly $593 billion on Jan. 27, 2025. Google Cloud revenue more than doubled to about $31 billion and the Gemini app passed 1 billion users, but search revenue rose 12% to about $63 billion, short of the roughly $65 billion estimate. Free cash flow swung to a loss of about $9 billion as AI spending climbed, and the company's stakes in AI labs also weighed. Pivotal Research CEO Jeffrey Wlodarczak said bears will argue AI is starting to seriously hurt the search business, while CFRA's Angelo Zino said the pullback probably represents an opportunity. Alphabet has lost more than $1.3 trillion since its May record, and Amazon's results after Thursday's close will show whether the problem is specific to Google's search business.
- Monetary policy decisions
The ECB Governing Council decided to keep its three key interest rates unchanged: 2.50% on the deposit facility, 2.65% on main refinancing operations and 2.90% on the marginal lending facility. Energy prices have kept rising, posing upside risks to inflation and downside risks to growth, while underlying inflation has been broadly stable and wages show no material response yet. Financing conditions have tightened since the last meeting, which is likely to weigh on inflation and growth. The Council aims for inflation to stabilise at its 2% target in the medium term, is not pre-committing to a rate path, and stands ready to adjust all its instruments within its mandate.
- The Economy Could Be Growing Too Fast for Warsh
The Fed held its target range at 3.75% to 4% on October 28, 2026, in a 10-2 vote, with Lisa D. Cook and Beth M. Hammack favoring a 25-basis-point hike. Chair Kevin Warsh said first-half GDP was revised up to 2.4% from 1.8% and third-quarter growth is likely above 3%, but pushed back on the idea that the economy is overheating. The Atlanta Fed's GDPNow stood at 3.3%, and a futures-based measure put the odds of a December hike at 86.0%. Headline PCE inflation was 3.4% in August and core was 3.0%, mostly tied to energy and core goods affected by the Middle East conflict and tariffs, which rate hikes do little to address. SPY is up 13.26% year to date, but its large tech holdings make it sensitive to a 10-year yield above 5%, and its outlook weakens if September core PCE tops 0.3% or the yield passes its October 5 high of 5.31%.
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