Magnificent 7 stocks news, Oct 16, 2026

Amazon declined, leaving the shares roughly 11% below their Aug. 3 all-time high of $284.02. Q3 earnings are set for Oct. 29, with analysts expecting AWS revenue growth of 30-35% year over year, down from Q2's 36.7%. Guidance calls for net sales of $197-202 billion and operating income of $22.5-26.5 billion, up sharply from $17.4 billion a year earlier. Some Anthropic investors are now discussing a $1.5 trillion valuation for its planned November IPO, down from roughly $2 trillion expected, which could shrink the $53.4 billion gain Amazon booked on the stake in Q2. Amazon also launched two Bee AI devices, the Bee Frontier wearable at $74.99 and the Bee Eclipse phone attachment from $99.99, plus an $11.99 monthly subscription.

Alphabet fell, leaving the shares well below their 52-week high of $408.61 heading into Q3 earnings on Oct. 28. Google rolled out Gemini 4 Argon globally, priced at $2 per million input tokens and $10 per million output tokens, roughly 50% below some competing models according to a Jefferies analyst. Consensus EPS revisions have drifted down 2.13% over 30 days, while Alphabet's 2026 capex guidance stands at $195-205 billion with buybacks suspended and long-term debt nearly doubled to $98 billion. Faruqi & Faruqi reminded investors of a Nov. 30, 2026 lead-plaintiff deadline in the federal securities class action over alleged misleading statements about Gemini 3.5 Pro. Google Quantum AI published a Science paper showing a 40-fold error reduction on its Willow processor, though the market response was muted.

Meta posted the largest decline of the holdings, giving back part of the recent gains built on its Muse model launches. BofA projects Q3 revenue of $63.8 billion against $63.3 billion consensus and ad revenue of $62.2 billion, but lowered EPS to $3.79 from $7.08 due to an expected $10 billion one-time legal accrual tied to a settlement with state attorneys general. The firm also raised its 2027 capital expenditure forecast to $205 billion from $192 billion, above the $195 billion consensus, keeping AI infrastructure spending in focus for the Oct. 21 report. Meta faces a Brazilian electoral court order to ensure equal treatment of presidential candidates ahead of the Oct. 25 runoff. New commercial terms effective Oct. 30 would give Meta the right to scrape business customers' websites for AI training with no opt-out, drawing publisher criticism.

Microsoft declined as two regulatory fronts stayed in the headlines. The Trump administration has suspended Microsoft and seven other companies from sponsoring foreign workers for green cards amid a visa-fraud investigation, with Brad Smith warning the curbs could push AI talent overseas for decades. The UK's Competition and Markets Authority proposed designating Microsoft with strategic market status over its business software ecosystem, with a final decision set for February. Microsoft announced plans to expand Maia chip deployments to multigigawatt scale starting in 2027 as its primary inference infrastructure, with Maia 300 scheduled to enter production. Its record October Patch Tuesday fixed 1,411 vulnerabilities, including 70 critical flaws and three zero-days.

Nvidia extended its pullback after OpenAI's disclosed $50 billion revenue run rate came in $18 billion below expectations, an AI selloff that cut Nvidia's market value by about $200 billion. CoreWeave, in which Nvidia holds roughly a 10% stake, plunged 12% Friday and is down about 25% for the week as its bond yields rose above 15% and CDS spreads hit an all-time high. Jensen Huang responded to the rout by saying 'all of this is going to pass' and expressed optimism about CoreWeave's improving strength and decreasing cost of capital. The RTX Spark laptop launched at $2,599, with launch-day crowds large but actual purchases few as buyers cited high prices. Taiwan plans $4 billion Texas industrial parks to relocate Nvidia suppliers, against Huang's statement that the supply chain meets only about 70% of demand.

Tesla fell, closing well below its 52-week high of $498.83 as the Roadster reveal's novelty faded and volume hit 61.6 million shares, about 64% above the three-month average. The stock had spiked as much as 5.4% premarket after Thursday's demo before reversing to an intraday low, a swing of roughly 6% that erased over $80 billion in value. Musk confirmed a 2028 production start for the Roadster, sending prediction-market odds of a delivery by end-2027 from 33% down to about 10%. The 9th Circuit decertified the California FSD false-advertising class action, a near-term legal win while the underlying case remains pending. A driver who said he was asleep using FSD crashed into two CHP patrol cars on I-80, seriously injuring two officers, underscoring Autopilot/FSD risk ahead of earnings.