Tesla helped stem losses for the Magnificent Seven this week, as tech stocks struggled amid fears about overspending on AI.
Summary written by Upside AI from the original article. Read the source for full details.
Read the original on Yahoo Finance ↗
Keywords
AAPLTeslaAI investmenttech stocks
Open a keyword to see other news on the same topic.
Related tickers and likely impact
AAPL
▲ Likely positiveApple Inc.
Relevance: low
| Market | US stocks |
|---|---|
| Sector | Information Technology |
| Industry | Technology Hardware, Storage & Peripherals |
| Market cap | $5.1T |
| Close on 10/29/2026 | 348.91 |
| Change that session | +1.48% |
Impact is scored by AI from the headline and may be wrong. It is not investment advice.
Related news
- Apple overtakes Nvidia to become world’s most valuable company amid tech selloff
Apple reclaimed the title of the world's most valuable publicly traded company with a $5.03 trillion market capitalization, edging past Nvidia at $4.93 trillion after Nvidia fell 4.2% on the day. Growing skepticism over aggressive AI spending, plus weak quarterly updates from Intel and Amazon, prompted investors to rotate into companies with more disciplined balance sheets. Over the past month Nvidia shed 10% while Apple gained 3%, and Apple shares are up 27% year to date. The article notes Alphabet posted negative free cash flow of $9.1 billion in the third quarter, and Amazon's trailing twelve-month free cash flow was negative $42.4 billion as infrastructure deployment accelerated. Apple is expected to generate expanding free cash flow, while the sector still awaits monetization of enterprise AI.
- Apple Overtakes Nvidia to Become World’s Most Valuable Company
Apple reclaimed the title of world’s most valuable company on Friday, overtaking Nvidia as investors sought the perceived safety of the iPhone maker amid concerns over AI spending. Apple shares fell 1.2% to a $5.03 trillion market cap, while Nvidia dropped 4.2% to $4.93 trillion. Disappointing results from Intel, Amazon, Alphabet and Meta renewed doubts about the outlook for AI spending, and Apple, which has kept capital expenditures low, is up 27% in 2026 and projected to lift free cash flow 38% to $142 billion in fiscal 2026. The Nasdaq 100 fell 6.7% in October, its worst month since March 2025.
- Apple Stock Escaped the AI Downturn. Now It Faces a 27% Plunge, Says Analyst.
- Flying Cars, Smart Homes, and Cracks in the AI Boom
This Motley Fool podcast, recorded Oct. 16, 2026, debates smart homes, flying cars, AI wearables and the recent sell-off in AI infrastructure stocks. The hosts view Apple's HomeView as a refined, incremental product that reinforces existing advantages rather than redefining the category, and note Apple is entering a home-device market already crowded with players like ADT and SimpliSafe. They compare Block's new restaurant device with Toast's established share and question whether Siri can justify a possible $19-a-month charge. The discussion also touches on a flying Tesla Roadster referenced for 2028.
- Nasdaq Sinks 694 Points as Meta Stock Slumps: Stock Market Today
The Nasdaq Composite fell 2.6% to 26,008 and the S&P 500 dropped 1.2% to 7,663, while the Dow Jones edged up 0.02% to 52,867, as tech stocks sold off after poorly received Magnificent 7 earnings and concerns about AI spending. Meta Platforms slid 7% despite third-quarter revenue of $64.6 billion beating estimates, as earnings of $3.83 per share fell short, free cash flow turned negative, and the low end of its full-year capex range was raised to bring it to $135 billion–$145 billion. Meta's board also approved non-voting Class C shares that will begin trading in January 2027, along with a two-for-one stock split for Class A shares. Tesla reported EPS of 48 cents on $28 billion in revenue, above expectations but below a year earlier, with operating expenses up 39%, and cut its full-year capex forecast to $20 billion from $25 billion. Procter & Gamble rose 5.6%, its best day since March 26, 2020, after results beat expectations.
- What Tesla Stock Has Been Doing Lately
Investors hope Tesla's third-quarter results can provide lasting momentum for the shares.
Related markets
Latest news
- Amazon Just Lost $42 Billion in Free Cash Flow. Is It a Red Flag for Investors?
Amazon posted strong growth in the quarter, with revenue up 17% to $201.9 billion after adjusting for foreign exchange and the Prime Day shift, and operating income up 61% to $28.1 billion. Yet the stock fell 1.4% in the regular session and tumbled about 7% after hours, as investors are skeptical of its massive AI-related capital expenditure, planned at $220 billion this year. In the third quarter alone, Amazon reported a free cash flow loss of $33.4 billion while spending $77.3 billion on property and equipment, and it has burned $42 billion in free cash flow over the last four quarters. The article says this equals 5.4% of trailing revenue, comparable to past cycle peaks such as 4.8% in 2022. Amazon forecasts 40% AWS growth over the next two years, and the author argues the spending could pay off through AWS.
- Why Arm Holdings Stock Plummeted by Nearly 10% Today
Arm Holdings shares fell almost 10% in Friday's session amid a broad sell-off in semiconductor stocks. The trigger was Intel's third-quarter report: although revenue grew in double digits and its data center and AI unit gained substantially, its fourth-quarter guidance was unexpectedly weak, forecasting sequential declines in revenue, gross margin and non-GAAP earnings per share, well below analyst estimates. Many chip stocks fell heavily, with Intel's outlook seen as a warning sign for the sector. The author argues markets tend to overreact and that Arm faces risks from the current contraction in PC shipments and rising component costs, though its asset-light licensing model may leave it less exposed than Intel. The author says they are waiting for Arm's fiscal second-quarter 2027 results, scheduled for Wednesday, Nov. 4 after market close.
- Is Intel Stock a Buy After Its Post-Earnings Plunge?
Intel shares fell sharply after hours on Thursday, from a $92.07 regular-session close to about $71, following third-quarter results. Revenue rose 21% year over year to $16.5 billion and adjusted EPS of $0.52 beat guidance, but the fourth-quarter outlook of $15.0–16.0 billion in revenue and $0.25 in EPS was weaker. Data center and AI revenue jumped 78% to $7.3 billion, while PC-related revenue fell 5% to $8.1 billion. Intel expects PC segment revenue to drop over 20% next quarter as industry PC units shrink about 12% in 2026 and 10% in 2027, and an accident that shut its Fab 28 plant in Israel also weighs on results. The author judges it is not yet time to buy, given the stock trades near 33 times expected 2027 earnings and the diluted share count is expected to be about 20% above the third quarter of 2025.
- Elon Musk 'trolls' over Binance hack, CZ bluntly says: 'I deeply respect you, please stop'
Binance co-founder Changpeng Zhao (CZ) asked Elon Musk to stop 'trolling' the exchange after the SpaceX and Tesla CEO posted emoji that appeared to mock the cyberattack on Binance, which caused losses of 6.3 billion USD on October 29. CZ pointed out that Binance holds SpaceX shares worth over 1 billion USD, stemming from its 500 million USD investment in Musk's Twitter acquisition, though this is a tiny fraction of SpaceX's valuation of about 2,000 billion USD. The feud is not new: in November 2021, Musk called Binance's temporary suspension of Dogecoin withdrawals 'shady', and CZ responded by citing Tesla's recall of nearly 12,000 vehicles in the US.
- Jim Cramer says it's time to look beyond tech. Here are 4 consumer stocks he likes
CNBC's Jim Cramer said investors seeking to diversify away from the struggling AI trade should consider consumer staples stocks. In October the Nasdaq-100 fell almost 7% as money rotated into defensive sectors, while the consumer staples index rose 11.4%. Cramer highlighted four stocks: Kimberly-Clark (up nearly 11% in October, under 15 times earnings, 4.7% dividend yield, with a pending merger with Kenvue); Procter & Gamble (up 11%, seen as attractive after better-than-expected quarterly results, though he prefers Kimberly-Clark's lower valuation and higher yield); Constellation Brands (up 20%, about 11 times earnings, yield above 3%, showing signs of a turnaround); and Coca-Cola (up 9%, after a strong quarter driven by volume).
- Why Bright Horizons Family Solutions Stock Swooned on Friday
Bright Horizons Family Solutions (BFAM) stock fell almost 18% on Friday after the child care company cut its 2026 guidance. For the third quarter, revenue of nearly $841.5 million rose almost 5% year over year, and adjusted EPS of $1.80 beat the $1.76 analyst estimate, though revenue missed the roughly $842.7 million consensus. Full-year 2026 revenue is now expected at about $3.07 billion, down from almost $3.09 billion to just under $3.12 billion, and adjusted EPS guidance was lowered to $4.98–$5.03 from $5.05–$5.15. Management attributed the cuts to an ongoing UK regulatory safeguarding notice and a softening child care market in Australia, which prompted an internal review of strategic alternatives for that business. The article notes the stock looks cheap on valuation metrics but needs growth from its full-service centers and a resolution of the Australia situation to draw renewed investor interest.
Get the briefing on Telegram or Zalo
Join the Upside Telegram channel or Zalo group for the Vietnam stocks and gold briefing at 8:00 and 19:00 (Vietnam time) on trading days, plus a weekly wrap on Saturday morning.