Magnificent 7 stocks news, Oct 23, 2026

Shares extended their decline after a 4.6% drop in the prior session as investors weighed Amazon's $220 billion 2026 capex plan against trailing free cash flow of -$7.6 billion. Q3 results arrive Oct 29 after the close, with consensus near $1.96 EPS and roughly $202 billion of revenue versus company guidance of $197–202 billion in sales and $22.5–26.5 billion in operating income, with growth dented about 4 points by the Prime Day shift to Q2. AWS grew 37% to $42.2 billion in Q2, its fastest in 18 quarters, on a $496 billion backlog, and the Street expects 30–35% Q3 AWS growth. Morgan Stanley's Brian Nowak raised his target to $350 and named Amazon his top pick, forecasting 47% AWS growth and $355 billion of capex in 2027. CEO Andy Jassy said AI inference is still roughly 10x too expensive for broad adoption and that AWS capacity is sold out for 2026, largely booked for 2027, with a good chunk of 2028 also gone.

Shares slipped again and are down about 7% over the week, leaving the stock well below its 52-week high as investors weigh $195–205 billion of 2026 capex and AI infrastructure constraints ahead of the Oct 28 print. Consensus for Q3 is $111.64 billion of revenue (+27.6% YoY) and $2.94 EPS, and Alphabet has beaten consensus in each of the last four quarters. Bank of America's Justin Post projects $111.4 billion of revenue and $3.07 GAAP EPS with Google Cloud up 93% YoY and maintains a $340 target, while BNP Paribas and Evercore lifted targets to $450. A securities class action over alleged Gemini 3.5 Pro delay disclosures carries a Dec 1, 2026 lead-plaintiff deadline. Cloud is the swing factor: the London outage is drawing UK regulatory interest and Sundar Pichai's remark that scarce capacity is being prioritized for internal DeepMind models has raised customer-retention questions.

Q3 revenue of $64.6 billion beat the top of guidance with 26% growth, and Q4 guidance of $73–76 billion topped the $73.6 billion consensus. The concern was cash, as free cash flow swung to negative $2.12 billion — the first burn since Meta's 2012 IPO year — with capex consuming 104% of operating cash flow. Meta raised the floor of its 2026 capex range to $135 billion (now $135–145 billion) and plans to issue one non-voting Class C share for each Class A and B share, a charter change effective Jan 19, 2027. The stock fell about 7% on Thursday and roughly 9% for the week, wiping around $135 billion off its market value in four sessions. Meta also pushed updated commercial terms from Oct 30 to Nov 20 after EU and UK antitrust complaints from publishers and advertisers.

Microsoft was the only holding to close higher on the day and is up about 9% for the year, holding in the upper reaches of its 52-week range. The Arkane Lyon studio has until Nov 13 to secure a buyer or face closure under French labor law, putting 217 jobs at risk, with unions saying redundancy-plan negotiations are going badly. Its AI Diagnostic Orchestrator scored 83% accuracy on 304 complex cases in a Science-published study versus 36% for physicians, which the company framed as progress toward 'medical superintelligence.' Gaming restructuring continues, with 4,800 gaming jobs cut since July and Xbox reportedly demanding $800 million for a seven-year Netflix IP licensing deal that Netflix left at $500 million. Earnings are due next week into a fragile AI-spending mood following Meta's negative free cash flow.

Apple briefly overtook Nvidia as the world's most valuable company, with Nvidia down about 7% in October on AI financing concerns while Apple added roughly 4%. Seaport Research's Jay Goldberg, the lone sell-rated analyst with a $180 target, estimates only 30 GW of the 55 GW of AI data center capacity announced for 2027 will materialize — a 45% shortfall — citing shortages of electricians, gas turbines and grid connections. Security firm Lava found 32 restricted B300 Blackwell Ultra GPUs running on China Telecom's network, while Chinese facilities are converting hundreds of GeForce RTX 5090 gaming cards into AI accelerators. A Business Insider report revived an analyst theory that Nvidia is 'channel stuffing' AI GPUs to Amazon, whose GB300 racks sit in warehouses awaiting power. Jensen Huang told Yahoo Finance at GTC Berlin that accelerators stay productive for eight-plus years, carry 'the lowest' risk of any asset class and could serve as debt collateral, with the stock up only about 14% year-to-date and below its 52-week peak.

Shares drifted lower on the day and sit roughly in the middle of their 52-week range, with coverage tone firmer after a sharply negative session yesterday. Fort Bend County approved a 30-year property tax abatement for a proposed $10 billion solar panel factory near Richmond, Texas — a full county waiver on equipment and inventory for the first 10 years, extendable to 35 if 12,000 workers are employed for two consecutive years — though Tesla has not yet committed to building there. Tesla scrapped Cybertruck sales for Australia and New Zealand, refunding about A$150 in 2019 deposits and offering a free year of FSD (Supervised) to buyers who order a Model 3 or Model Y instead, and the shares fell about 2% on that news. Q3 topped estimates with adjusted EPS of $0.48, but 2026 capex guidance was cut 20% to about $20 billion and full-year EPS estimates slid to $1.74 from $2.13. Musk said Optimus and Cybercab will be 'the vast majority of Tesla's value,' while European registrations rose 69.9% in January–September yet BYD overtook Tesla with 154.4% growth.