💎 Big Tech Earnings Is Mostly Over

Good afternoon! Nvidia’s hitting the big leagues, set to replace Intel in the Dow Jones Industrial Average on November 8—a change that speaks volumes about the power shift in the chip industry. Nvidia’s stock has rocketed over 170% this year, riding the AI wave to a towering $3.3 trillion market cap, second only to Apple. Intel, meanwhile, has been losing ground, with shares tanking more than 50% as it faces production hurdles and heavy competition from AMD.

This isn’t just a one-for-one swap; Sherwin Williams will also be joining the Dow, replacing Dow Inc., as the index tries to keep pace with the tech giants. Nvidia’s recent 10-for-1 stock split made it a prime candidate for the price-weighted Dow, which is warming up to today’s biggest players in tech innovation.

MARKETS

• Stocks rallied Friday as big tech earnings powered the markets out of Thursday’s tech-driven slide. Amazon’s cloud growth and Intel’s upbeat guidance lifted spirits, helping the Nasdaq climb 0.8%, while the S&P 500 added 0.4%. Investors shrugged off a dismal jobs report, opting to focus on corporate strength over economic worries.

• The Dow joined the party with a 0.7% gain, setting a positive tone for November. Traders seemed unphased by election uncertainties and patchy economic data, choosing instead to double down on tech's potential to keep the market afloat.

STOCKS
Winners & Losers

What’s up 📈

• Atlassian surged 18.99% after exceeding Q1 expectations with earnings of 77 cents per share on $1.19 billion in revenue, above estimates of 64 cents per share and $1.16 billion. The company also raised its full-year revenue growth forecast. ($TEAM)

• Avis Budget surged 10.92% after posting $6.65 in earnings per share on $3.48 billion in revenue, despite missing estimates of $8.18 per share and $3.53 billion in revenue. ($CAR)

• Intel rose 7.81% after beating Q3 earnings expectations and issuing strong guidance, posting adjusted earnings of 17 cents per share on $13.28 billion in revenue. ($INTC)

• Amazon climbed 6.19% on a strong Q3 report, with its cloud segment, Amazon Web Services, growing 19% year-over-year. ($AMZN)

• Charter Communications jumped 11.87% following better-than-expected Q3 EBITDA of $5.65 billion, exceeding the $5.59 billion forecast, and revenue of $13.80 billion, beating the $13.66 billion consensus. ($CHTR)

• Boeing added 3.54% after reaching a contract agreement with its machinists’ union, potentially ending a seven-week strike with a vote scheduled for Monday. ($BA)

What’s Down 📉

• Super Micro Computer declined 10.51% as ongoing concerns over accounting practices and board independence following EY’s resignation as auditor led to further sell-offs, marking a 41.5% drop for the week. ($SMCI)

• Wayfair declined 6.26% after reporting Q3 earnings that beat analyst estimates. However, the stock faced pressure due to muted guidance provided during the earnings call. ($W)

• Estée Lauder fell 3.42%, continuing its downward trend after reporting weak Q1 fiscal 2025 earnings. The company cited demand pressures, particularly in China, and announced a reduction in its quarterly dividend. ($EL)

• Carvana dropped 7.37%. ($CVNA)

• Reddit decreased 5.30%. ($RDDT)

• AppLovin slipped 3.46%. ($APP)

EARNINGS
Big Tech Earnings Is Mostly Over

With 44% of the S&P 500 reporting earnings this week, you’d think we’d be talking about a range of companies. But let’s be real: all eyes were glued to five giants—Alphabet, Meta, Microsoft, Apple, and Amazon. Together, they represent over 20% of the S&P 500’s market cap, so when these titans sway, the market follows. The good news? They mostly crushed expectations. Here’s how the big five scored:

• Alphabet: EPS of $2.12 vs. expected $1.85; revenue of $88.27 billion (beat the forecast)

• Microsoft: EPS of $3.30 topping $3.10 estimates; revenue of $65.6 billion

• Meta: EPS at $6.03 smashing the $5.22 target; revenue just over expectations at $40.6 billion

• Apple: EPS of $1.64, sneaking past forecasts; revenue of $94.93 billion barely beating estimates

• Amazon: EPS at $1.43, well above $1.14 projected; revenue at $158.88 billion

AI Spending Spree or Money Pit?

While strong revenues and earnings pleased on the surface, investors quickly tuned in to the mounting costs behind the scenes, particularly for AI. Meta’s capex hit $8.3 billion (20% of revenue), Alphabet $13.1 billion (15%), Microsoft $14.9 billion (23%), and Amazon $22.6 billion (14%).

Then there’s Apple, spending a much leaner $2.7 billion (just 3% of revenue), as it doubles down on a more on-device AI strategy. For investors, it wasn’t just the size of the spend that drew a reaction but how rapidly costs are swelling.

Forward-Looking Markets: A Lukewarm Outlook

Good earnings alone aren’t cutting it anymore—markets want reassurance that big tech’s future is just as bright. Microsoft saw its biggest stock dip in two years as guidance suggested slower growth in the near term.

Apple’s CFO noted “low-to-mid-single digits” growth ahead, while Amazon’s outlook fell short of analyst hopes, adding to the volatility.

The Takeaway: Near Perfection Isn’t Enough

This week’s results prove that Wall Street isn’t looking for good quarters; it’s demanding flawless ones. Any sign of weakness in future forecasts is enough to rattle investors, reminding us that for big tech, the pressure to deliver has never been higher.

Expect more scrutiny and turbulence as these companies work to prove they’re worth their heavyweight valuations.

NEWS
Market Movements

• 🛠️ Boeing Reaches Contract Deal with Union: Boeing shares rose 2.8% in after-hours trading following a new contract deal with its striking union, which includes a 43% cumulative wage increase over four years and a $12,000 bonus. Union members vote on the deal Monday. ($BA)

• 👔 Peloton Appoints Peter Stern as New CEO: Peloton named Peter Stern, Ford executive and Apple Fitness+ co-founder, as CEO starting Jan. 1, prompting a 20% stock increase. ($PTON), ($F), ($AAPL)

• 📺 Comcast Considers Spinning Off Cable Networks: Comcast is evaluating a spin-off of MSNBC, USA, and Syfy into a new company and is exploring streaming partnerships to boost its Peacock platform. ($CMCSA)

• 🔍 OpenAI Adds Real-Time Search to ChatGPT: OpenAI’s "ChatGPT search" now offers real-time updates on news and stock prices, initially for ChatGPT Plus users, with plans to expand access soon.

• ⚔️ Microsoft Accuses Google of Undermining Cloud Business: Microsoft claims Google has funded "shadow campaigns" against its cloud offerings in Europe, offering financial incentives to block settlements with Microsoft. ($MSFT), ($GOOGL)

• ⚡ Ford Pauses Production of F-150 Lightning EV: Ford will temporarily halt production of its electric F-150 Lightning truck from mid-November to early January to manage inventory and reduce losses. ($F)

• 📵 Indonesia Blocks Sales of Google and Apple Phones: Indonesia has banned sales of Google’s Pixel and Apple’s iPhone 16, citing a new requirement for 40% local components to support domestic production. ($GOOGL), ($AAPL)

• 🎃 Google Execs Face Staff Concerns Over Cost Cuts: At a Halloween-themed all-hands meeting, Google executives fielded employee questions on cost-cutting measures after signaling further reductions in hiring and potential future layoffs. ($GOOGL)

EARNINGS
Echelon Of Earnings

The earnings circuit is winding down, but before we wave the checkered flag, here’s a last look at the latest big moves.

Intel’s (Kinda) Loss, Market’s Gain

Intel posted its largest quarterly loss on record, mostly from one-time restructuring charges after laying off over 16,500 employees. But investors aren’t too rattled—those cuts are expected to fuel CEO Pat Gelsinger’s grand turnaround vision, and shares jumped 7.81% on the news. Intel’s cost-saving measures have shareholders hopeful the company is finally finding its footing.

Coinbase Holds Its Ground

Crypto exchange Coinbase had a shaky earnings reveal, showing weaker-than-expected earnings and revenue tied to lower trading volumes. Yet, despite the dip, shares ticked up 2.03% as investors weighed in on its future potential. Stablecoins and crypto seem to have bipartisan support, no matter which way the election goes, giving Coinbase an edge in the long run.

Chevron vs. Exxon Mobil: Divergent Paths

Big Oil delivered a mixed bag: Chevron and Exxon both beat earnings expectations, but Chevron’s shares climbed 2.86%, while Exxon’s slipped 1.57%.

Chevron’s cost-cutting focus appealed to Wall Street’s sensibilities, while Exxon’s push to increase production sparked concerns about oil price volatility potentially disrupting its plans.

Looking Ahead
As earnings season takes a breather, the stage shifts to the upcoming presidential election and the Federal Open Market Committee meeting next week.

Some stragglers, like Super Micro Computer, are still scrambling to release results (or perhaps hide them), so stay tuned—earnings season may have more surprises in store yet.

Calendar
On The Horizon

Next Week

Tuesday’s presidential election might be the big show, but it’s not the only event on the calendar. Right after the ballots are counted, the Fed’s Open Market Committee meets Wednesday and Thursday to weigh in on interest rates.

So, by week’s end, not only will we know who’s heading to the Oval Office, but we’ll also get the latest from Powell & Co. on the Fed’s next move. Get ready—it’s shaping up to be a news-packed week.

Earnings:

• Monday: Marriott International ($MAR), Palantir Technologies ($PLTR), Hims & Hers Health ($HIMS), Brookfield Asset Management ($BAM), Wynn Resorts ($WYNN), New York Times ($NYT), Fox ($FOX), and Goodyear Tire & Rubber ($GT).

• Tuesday: Devon Energy ($DVN), Yum! Brands ($YUM), Cummins ($CMI), Archer Daniels Midland ($ADM), iRobot ($IRBT), Trivago ($TRVG), and Ferrari ($RACE).

• Wednesday: Novo Nordisk ($NVO), Qualcomm ($QCOM), Arm Holdings ($ARM), Zillow ($ZG), Toyota Motor ($TM), Honda Motor Co. ($HMC), HubSpot ($HUBS), e.l.f. Beauty ($ELF), CVS Health ($CVS), Sunoco ($SUN), and Six Flags Entertainment ($SIX).

• Thursday: Moderna ($MRNA), Airbnb ($ABNB), Rivian Automotive ($RIVN), Lucid Group ($LCID), Pinterest ($PINS), Warner Bros. Discovery ($WBD), Under Armour ($UAA), Warby Parker ($WRBY), Planet Fitness ($PLNT), Penn Entertainment ($PENN), Steve Madden ($SHOO), Ralph Lauren ($RL), and Krispy Kreme ($DNUT).

• Friday: Sony ($SONY), Paramount Global ($PARA), Icahn Enterprises ($IEP), AMC Networks ($AMCX), and Canopy Growth ($CGC).

NEWS
The Daily Rundown

• 📉 College Costs Defy Trends, Slowly Declining Over the Decade: Despite rising sticker prices at top schools, the average net cost of tuition and fees at public universities has dropped 40% over the past ten years. The College Board reports a 12% decline in private school tuition, with about half of last year’s graduates leaving without debt—a surprising shift as colleges compete for a shrinking pool of students.

• 📈 iPhone 16 Off to a Strong Start as Apple Hints at Earnings Boost: Apple’s latest earnings show iPhone 16 sales exceeding expectations, with $46 billion in iPhone revenue last quarter. However, overall earnings were mixed, with services revenue below estimates and a $10.2 billion tax payment to Ireland impacting net income. ($AAPL)

• 💷 UK Announces $52B Tax Hike to Jumpstart Economic Growth: Britain’s Labour government revealed a fiscal plan to raise $52 billion in taxes as part of a broader strategy to reduce debt and reinvigorate the economy. Similar austerity moves are taking place across Europe, where economic growth lags behind that of the U.S.

• ☕ Starbucks Brings Back Sharpied Cup Names Under New CEO: For the first time in four years, Starbucks will reintroduce writing names on cups as part of new CEO Brian Niccol’s strategy to revamp the struggling coffee chain.

• 🗺️ Google Maps Adds AI Features for Enhanced User Experience: Google Maps will soon feature AI-driven updates, including detailed parking options, improved walking directions, and tailored restaurant recommendations.

• 🎶 Grammys Move to Disney Platforms in 2027 with $500M Deal: The Grammy Awards will shift from CBS to Disney outlets, including ABC, Hulu, and Disney+, beginning in 2027 as part of a decade-long partnership.

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