Magnificent 7 stocks news, Oct 21, 2026

AMZN finished roughly flat after a strong prior session that had it up about 5% on the TorchNeuron launch, open-source software that lets PyTorch developers run code on Trainium chips with a single config change. Morgan Stanley named Amazon a top pick and raised its price target to $350 from $335, citing AWS growth forecasts of 47% in 2027, while KeyBanc reiterated Overweight at $350. Anthropic's confidential draft IPO filing describes roughly $450 billion of noncancelable cloud compute agreements across Amazon, Alphabet and Microsoft, pointing to customer concentration in AWS backlog. Amazon plans over €16 billion of investment in Germany in 2027 and joined American Electric Power and X-energy to evaluate a 960-megawatt advanced nuclear project in Indiana. Trailing-twelve-month free cash flow has turned negative on heavy AI capex, and Q3 operating income guidance is $22.5 billion to $26.5 billion against $17.4 billion a year earlier.

GOOGL declined, one of the weaker holdings on the day, after CEO Sundar Pichai said Google Cloud is deliberately forgoing short-term revenue to give compute to frontier AI research and that meeting 2027 customer capacity requests would be incredibly difficult. Options imply a move of about 5.1% in either direction on the Q3 report due Oct. 28 after close, with consensus EPS of $2.89 to $2.94. KeyBanc cut its price target to $410 from $435 while keeping Overweight, and Bank of America's $430 target flags roughly $300 billion of expected 2027 capex as a test for shareholders. A securities class action alleging misrepresentation of the Gemini 3.5 Pro timeline carries a Nov. 30 lead-plaintiff deadline. Alphabet also formally objected to being included on OKXICE's tokenized-stock platform alongside Microsoft and Goldman Sachs.

META gained modestly in regular trading on the day of its Q3 report and rose about 4% in extended trading. Revenue of $64.6 billion beat consensus and grew 26% year over year, while GAAP EPS of $3.83 missed estimates because of a $9.89 billion charge tied to an $18.59 billion settlement with 52 state AGs; excluding the charge, EPS would have been $7.40. Q4 revenue guidance of $73 billion to $76 billion topped estimates, and the company announced a new non-voting Class C share, effectively a two-for-one split, to fund AI investment while preserving Zuckerberg's voting control. Full-year 2026 capex guidance was raised to $135 billion to $145 billion, free cash flow swung to negative $2.12 billion, and operating margin fell to 20.1%. Muse surpassed 10 million users in the US and Canada within about six weeks, with roughly a quarter using it daily.

MSFT was nearly unchanged, holding well within its 52-week range ahead of fiscal Q1 earnings due Oct. 28. Microsoft revealed Xbox Cloud Gaming pay-as-you-go pricing of $3.99 for 10 hours, $7.99 for 25 hours and $11.99 for 50 hours, with broader rollout in November and monthly cloud-hour limits coming to Game Pass tiers. The Information reported that several private equity firms explored a joint acquisition of Xbox valued at $100 billion to $150 billion, though Microsoft stated unequivocally that Xbox is not for sale. The company also pulled out of a major UK data center deal, flagged as a notable AI-infrastructure setback. S&P Global and Citi warnings on AI-related debt and capex keep spending trajectory in focus for the Oct. 28 report.

NVDA rose more than 2.5%, the day's strongest holding move, as GTC Berlin opened on Oct. 21. Nvidia introduced DSX POD, pre-integrated Vera Rubin AI factory containers that cut deployment time from six months to as little as 14 days, and the OpenShell Reference Architecture for secure enterprise AI agents. Germany's federal government signed a Joint Declaration of Intent with Nvidia on Oct. 19 to formalize an industrial AI ecosystem, and Nvidia released refreshed open-weights Nemotron Retriever and Alpamayo models supporting 34 languages. T-Mobile completed the first AI-RAN call on a live network with Nvidia and Nokia, while Nvidia invested in a $220 million round for doubleAI. Silicon Data is partnering with CME Group to launch futures on indexes tracking Nvidia chip rental prices as early as November.

TSLA rose about 3.4% in regular trading on SpaceX merger news and added roughly 1 to 2 percent after hours on its Q3 report. Adjusted EPS of $0.48 beat the $0.43 consensus and revenue of $28.05 billion topped the $27.88 billion expectation, though revenue was roughly flat year over year and GAAP net income fell 43% to $787 million. Free cash flow surprised at positive $1.53 billion against an expected burn of about $4.9 billion, helped by capex of $4.73 billion well below the roughly $7.5 billion forecast, and automotive gross margin excluding regulatory credits improved to 18.1%. Operating income nonetheless fell 56% to $718 million, and energy revenue dropped 16% to $2.88 billion on tariff-related customer refunds despite 10% higher deployments. Special committees of independent directors at Tesla and SpaceX have been formed to negotiate exploratory merger terms requiring approval of 50% of Tesla shareholders, and Optimus production has begun at Fremont.