Magnificent 7 stocks news, Oct 7, 2026

Amazon eliminated fewer than 1,000 roles on Tuesday across customer service, marketplace support, retail engineering and teams in India and the UK, with the cuts described as primarily in the Stores business. The reductions come as the company prepares a record $220 billion of spending on data centers, chips and AI infrastructure, continuing a cost overhaul that saw roughly 30,000 job eliminations late last year and earlier this year. Amazon is also subleasing about 375,000 square feet at 1 Boston Wharf Road, following CEO Andy Jassy's move of Alexa AI development leadership from Boston to Seattle. Automatic refunds from the FTC's $2.5 billion Prime settlement continue flowing to eligible customers through April 2027, and the FCC plans to auction spectrum in bands Amazon has expressed interest in for satellite-to-phone service. Sentiment was flat today after an equally flat reading yesterday.

Alphabet signed a 20-year, 890 MW nuclear power purchase agreement funding $4.3 billion of Constellation plant upgrades, plus a 15-year, 2,700 MW grid agreement, totaling 3.59 GW for AI data centers. The lead-plaintiff deadline in a filed securities class action is December 1, 2026, with complaints alleging Google was months behind on Gemini 3.5 Pro after a July 16 report that pushed Class A shares down $16.46 that day. Google Cloud's backlog reached $514 billion on Q2 revenue up 82% year-over-year, against $811 billion of committed AI-infrastructure spending. The news notes the stock sits about 14% below its May 2026 all-time high and roughly 15.7% below its 52-week high, with a five-month consolidation between about $343 and $351. Google and Unity also announced an integrated AI gaming platform for later this year, and sentiment recovered from yesterday's positive reading.

Florida AG Uthmeier filed an 85-page motion seeking a temporary injunction to force Meta to remove users under 14, cap Florida teens at two hours a day across all Meta apps, and disable autoplay and infinite scroll while the case proceeds. Uthmeier rejected the multistate settlement of up to $18 billion as inadequate and plans to go to trial, extending legal exposure beyond the August agreement with 48 other states and DC; Meta called the motion meritless. META triggered a golden cross on Oct. 6 after an roughly 18% rally over the past month, and Wells Fargo recently lifted its price target to $1,000 from $796 on the Muse AI agent launch. Muse expanded to iPad on Oct. 7 with Sensor Tower estimating 6.6 million installs since its Sept. 8 debut, and Ark purchased $7.8 million of META after the surge. Coverage sentiment has been positive for three of the last four sessions.

Microsoft opened preorders for the Surface Laptop Ultra at $2,599, rising to $3,299 for 32GB and up to $5,900 for 128GB, with the top-end model already out of stock and shipments starting Oct. 16. The device runs Nvidia's RTX Spark N1X SoC and targets developers and creators running AI workloads locally, alongside a $5,999 to $6,000 Surface RTX Spark Dev Box and RTX Spark laptops from six OEMs shipping the same day. Nadella outlined a 'hybrid intelligence' strategy routing AI tasks between on-device models and the cloud, partly to shift workloads off costly Azure data centers. Copilot gains access to local files and cross-OS actions over the next couple months, backed by generally available Microsoft Execution Containers, and a redesigned Windows 11 search ships this fall. One report also flags Microsoft among tech peers issuing large new debt to fund AI data centers, with credit analysts warning of bubble-like conditions.

Microsoft's Surface Laptop Ultra and multiple OEM laptops powered by Nvidia's RTX Spark N1X SoC opened for preorder at $2,599 and ship Oct. 16, marking Nvidia's entry into the PC CPU market with Arm-based chips combining Grace CPUs and Blackwell GPUs. Nvidia closed at a record on Oct. 5, up about 2.1%, and the news puts its market value near $5.8 trillion at roughly $242 per share, with Jim Cramer citing Nvidia, Microsoft and Meta as propping up indexes. Fiscal Q2 2027 net income reached $59.7 billion, up 126% year-over-year, though the report notes the market cap is only about 20% larger than Apple's, reflecting skepticism about earnings durability. Jensen Huang is set to receive the National Medal of Science at a White House summit on Thursday, while Bloomberg reported board member Mark Stevens is among AI executives selling shares. Sentiment has now been positive for three straight sessions, with the stock up 28% year-to-date in 2026.

UBS's Joseph Spak raised his TSLA price target from $385 to $391 and kept a Buy rating, citing favorable risk/reward after shares fell 16.6% over the past year to $378.02, while flagging a roughly 396x earnings multiple on robotaxi and AI expectations against a 1% operating margin and negative $1.09 billion of free cash flow. A Reuters investigation found Tesla repeatedly pushed Dutch regulator RDW to reduce the scope and cost of its FSD safety review, disputing a €365,000 bill, with seven traffic-safety researchers questioning Tesla's European safety methodology. Q3 deliveries of 486,532 beat the roughly 461,974 consensus but fell about 2% year-over-year, and 'Other Models,' nearly all Cybertruck, dropped 48% to 8,295 units. Elon Musk said Tesla and SpaceX will build and operate the Terafab AI chip complex in Texas themselves, with Intel confirmed as a partner, and IMC Logistics ordered 50 Tesla Semis. Coverage sentiment turned positive after two days in negative territory.