Tech Stocks Slide as Amazon, Intel and Alphabet Earnings Revive Fears Over AI Spending
Photo: APTech stocks sold off sharply on Friday after disappointing earnings from Amazon, Intel and Alphabet renewed worries about artificial intelligence spending. Nasdaq futures fell nearly 800 points, or 2.7%, before the opening bell, and the Nasdaq was later reported down about 2%. The S&P 500 fell 1.3% and was on track to erase its October gain, despite setting a record high during the month. Intel dropped roughly 25% to 26% in premarket trading and 29% during the session. Alphabet extended a slide of more than 12% on Thursday, its worst day since it went public in 2004. Amazon reported revenue of $201.9 billion and net income of $20.7 billion, both below estimates, with negative free cash flow of $42.4 billion and a reaffirmed 2026 capital spending forecast of $220 billion. Its cloud unit, AWS, grew 39% to $46 billion. Intel guided fourth-quarter revenue of $15 billion to $16 billion, below the $17.05 billion analysts expected, as PC demand weakened, though data center and AI revenue rose 78% to about $7.3 billion. Investors are also worried about debt used to finance data centers. NBC also reported hackers stole nearly $6 billion in cryptocurrency.
Left-leaning outlets CBS News and NBC News frame the day as a broad tech rout. CBS leads with the futures plunge and Alphabet's worst day, quotes Vital Knowledge's Adam Crisafulli on one of the worst tech earnings seasons in memory, cites UBS's advice to diversify beyond AI, and raises debt sustainability. NBC's short TV item pairs the stock drop with the crypto theft and gives few figures. Right-leaning outlets the New York Post and Washington Times also tie the drop to AI fears. The Post's headline calls Amazon, Intel and Reddit "victims" of those fears and relies on company figures: Amazon's misses, AWS growth, Intel's PC shipment decline and the "AI bubble" worry. The Washington Times offers only a brief futures note. Both sides agree on the cause and the companies involved. They differ in sourcing, with analysts on the left and company data on the right. ZeroHedge adds Bloomberg consensus comparisons and a possible record Intel decline.
How the sides differ Left sources stress analyst warnings, debt worries and a crypto-heist pairing; right sources stress company figures and 'AI bubble' fears, with Reddit among the losers.
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CBS leads with the Nasdaq futures plunge, citing analysts Adam Crisafulli and UBS's Ulrike Hoffmann-Burchardi on AI payoff and debt worries; NBC runs a brief TV item pairing the slump with a nearly $6 billion crypto heist.
ZeroHedge focuses on Intel's premarket crash, comparing its guidance and segment results to Bloomberg consensus and noting a possible record decline; AP reports the S&P 500's 1.3% drop erasing October's gain.
- Washington TimesPaywallU.S. futures fall as Amazon, Intel and Alphabet weigh on Wall Street
The New York Post leads with the Nasdaq's 2% drop and AI-bubble fears, with detailed Amazon and Intel figures and Reddit's decline; the Washington Times briefly notes futures falling as Amazon, Intel and Alphabet weigh on Wall Street.