Amazon, Alphabet, SpaceX and Meta Are All to Blame for the New Tech Stock Rout

Image source: AI-generated with OpenAI

Don't blame Intel's (INTC) weak guidance, tied to a prolonged memory chip supply shortage, for the fresh rout in tech stocks.

Blame the hyperscalers like Amazon (AMZN), Alphabet (GOOGL) and Meta (META) for not properly guiding Wall Street on how much they intended to spend this year and next on AI infrastructure. The bills are coming in much larger than expected, and Wall Street can't stomach it.

That's why you aren't seeing many investors saying to buy the dip right now. That's why Friday is shaping up to be another bloodbath for tech stocks.

Remember, it's cash flow that will be used to repay all the debt hyperscalers are poised to incur to support their robust AI infrastructure buildouts. The fact that cash flow is drying up because of a prolonged period of spending is the issue causing the debt and stock markets to catch a cold.

Kudos to Amazon for at least not burying its free cash flow metric, the most important metric for tech at the moment, at the bottom of its earnings release. It made the figures no less difficult to stomach, but at least they were easy to find.

Amazon's free cash flow decreased to an outflow of $42.4 billion for the trailing 12 months, driven primarily by a year-over-year increase of $94.8 billion in purchases of property and equipment. This increase primarily reflects investments in artificial intelligence, Amazon said. Yahoo Finance reports.

🏢 Binance Investigates Potential Hack as Billions in Crypto Assets Are Affected
Binance is investigating a major security incident that could become the largest cryptocurrency hack in history. Blockchain investigators traced billions of dollars in suspicious transfers from the exchange's hot wallets on Thursday.

Stablecoin issuers have already intervened. Tether confirmed freezing more than $1.567 billion in USDT, while Circle blocked more than $800 million in USDC.

Ripple also reportedly froze approximately $200 million.

That brings the reported frozen amount to nearly $2.6 billion. Binance has since estimated the incident's total impact at approximately $6.3 billion, with around $3 billion frozen on-chain, although the final amount stolen remains unconfirmed. Yahoo Finance reports.

💻 Why Is Intel Stock Sinking Friday?
Intel Corp. (NASDAQ: INTC) stock plunged nearly 26% in Friday's premarket trading as investors reacted to disappointing fourth-quarter guidance and a broader technology sell-off.

Nasdaq futures fell 2.23%, while S&P 500 futures declined 0.94%.

Intel beat third-quarter expectations but issued a fourth-quarter outlook well below Wall Street estimates, raising concerns about PC demand, rising memory costs, and the company's ability to sustain growth in its data center and foundry businesses. Benzinga reports.

🎮 Why Is Roblox Stock Sinking Friday?
Roblox Corp. (NYSE: RBLX) stock fell in premarket Friday after the company reported third-quarter results.

The gaming platform reported a 9% year-over-year decline in daily active users (DAUs) to 138 million and issued a weaker fourth-quarter bookings outlook, weighing on investor sentiment.

Roblox expects fourth-quarter bookings to decline 10% to 15% year over year, citing difficult comparisons and a potential modest impact from the launch of GTA VI. Benzinga reports.

🏗️ Why Civeo Shares Are Trading 20% Higher
Shares of Civeo Corp. (NYSE: CVEO) rose sharply in premarket trading after the company reported better-than-expected third-quarter financial results and raised its FY2026 sales guidance above estimates.

Civeo reported quarterly earnings of 50 cents per share, which beat the analyst consensus estimate of a loss of 27 cents per share. The company reported quarterly sales of $193.101 million, which beat the analyst consensus estimate of $174.054 million.

Civeo shares jumped 19.9% to $36.62 in premarket. Benzinga reports.

📱 Reddit Shares Plunge 23% on DAU Deceleration, Weak Guidance
Reddit reported third-quarter results that topped analyst estimates, but shares sank sharply after the social media company issued a weaker-than-expected revenue outlook and warned of accelerating declines in search referral traffic.

Reddit reported adjusted earnings of $1.40 per share, beating the consensus estimate of $1.33. Revenue rose 53% year over year to $895 million, above expectations of $874.9 million.

However, the company forecast fourth-quarter revenue of $1.00 billion to $1.03 billion, putting the midpoint of $1.015 billion below Wall Street's $1.05 billion estimate. Yahoo Finance reports.

(All pricing and percent gains are based on Early Pre-Market from 4:00 AM to 7:00 AM ET). Stock Analysis reports.

1) OSPN: OneSpan Inc.
Total gain: +19.90%

2) WKHS: Workhorse Group, Inc.
Total gain: +19.22%

3) CVEO: Civeo Corporation
Total gain: +15.22%

4) NRXP: NRx Pharmaceuticals, Inc.
Total gain: +15.04%

5) CDNA: CareDx, Inc.
Total gain: +12.84%

The closing price of the top three market percent gainers trading near or above $2 on Oct 29.

(All pricing and percent gains are based on regular market trading hours from 9:30 AM to 4:00 PM ET). Stock Analysis reports.

1) PCLA: PicoCELA Inc.
Total gain: +85.93%

The stock appeared to be moving on no notable news.

2) XCH: XCHG Limited
Total gain: +41.80%

The stock appeared to be moving on no notable news.

3) KPLT: Katapult Holdings, Inc.
Total gain: +37.58%

The company announced it will release its third-quarter 2026 financial results before the market opens on Thursday, November 12, 2026. The Company will host a conference call and webcast to discuss these results at 8:00 AM ET that same day. GlobeNewswire reports.

(Estimate and Actual numbers represent Earnings Per Share in US Dollars)

MGA

Magna International

Q3 2026

Before Market Open

Estimate: 1.600

Actual: 1.830

SEOAY

Stora Enso

Q3 2026

Before Market Open

Estimate: 0.120

Actual: 0.069

BP

BP

Q3 2026

Before Market Open

Estimate: 2.630

Actual: 3.260

Time (ET) / Report / Period

• 8:30 AM / Employment Cost Index / 3Q
• 9:45 AM / Chicago Business Barometer - ISM-Chicago Business Survey - Chicago PMI / Oct.

“In this business, if you're good, you're right six times out of ten. You're never going to be right nine times out of ten.”

— Peter Lynch

Sourced in: PBS FRONTLINE, Interview With Peter Lynch, Betting on the Market.

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