Magnificent 7 stocks news, Oct 24, 2026

Morgan Stanley's Brian Nowak named Amazon a top pick and raised his target to $350 from $335, driving shares up ~5% to $262 early in the week on forecasts of 47% AWS growth in 2027. Amazon launched TorchNeuron, an open-source tool letting PyTorch developers run code on Trainium chips with minimal changes, directly challenging Nvidia's CUDA ecosystem. However, shares fell 4.6% on Oct 22 as investors weighed the $220B 2026 capex plan against trailing free cash flow of -$7.6B. CEO Andy Jassy said AI inference remains ~10x too expensive for broad adoption and that AWS capacity is sold out for 2026 with 2027 largely booked. Q3 earnings are due Oct 29 after the close with consensus EPS near $1.96 on ~$202.2B revenue.

Alphabet shares fell ~7% over the week to near $320, as investors weighed $195–205B in 2026 capex and growing AI infrastructure constraints ahead of Oct 28 earnings. A Google Cloud London-region outage disrupted UK banking services including Revolut and Lloyds, raising reliability concerns as Alphabet pursues financial-services cloud customers. CEO Sundar Pichai acknowledged Google Cloud is deliberately forgoing short-term revenue to reserve compute for frontier AI development, noting accommodating new 2027 capacity requests would be 'incredibly difficult.' Bank of America forecast Q3 revenue of $111.4B and Google Cloud growing 93% YoY versus 89% consensus, while BNP Paribas raised its target to $450 on external TPU opportunities. A securities class action over alleged Gemini 3.5 Pro delays has a lead-plaintiff deadline of Dec 1, 2026.

Meta reported Q3 revenue of $64.6B beating consensus by 26% YoY, but free cash flow swung to negative $2.12B — its first cash burn since the 2012 IPO — as capex consumed all of operating cash flow. The company raised its 2026 capex floor to $135B from $130B and announced a new non-voting Class C share class, effectively a 2-for-1 split taking effect Jan 19, 2027, to fund AI investment while preserving Zuckerberg's voting control. Shares fell ~9% for the week, wiping roughly $135B off market value across four sessions. A New Mexico jury ordered a $25B privacy fine over claims tied to the Cambridge Analytica scandal, and Meta postponed revised commercial terms from Oct 30 to Nov 20 amid EU and UK antitrust complaints. Muse, Meta's consumer AI agent, surpassed 10M users in about six weeks with roughly 25% using it daily.

Microsoft withdrew from Nscale's 50MW AI data-center deal in England after grid operators said sufficient power would not be available until the early 2030s, marking a notable AI-infrastructure setback. Britain's CMA proposed designating Microsoft as having 'strategic market status,' which could allow regulatory intervention in product bundling, cloud licensing, and customer switching in the UK by February 2027. Microsoft's MAI-DxO diagnostic AI scored 83.2% accuracy on complex NEJM cases versus 36.1% for generalist physicians in a Science-published study, with clinical testing at Beth Israel Deaconess beginning within two months. Arkane Lyon studio faces a Nov 13 closure deadline with 217 jobs at risk under French labor law. Shares edged down slightly for the week ahead of Oct 28 FY2027 Q1 earnings where Azure growth and AI capex conversion will be the focus.

Nvidia fell 3.6% on Oct 22 amid a broad AI selloff triggered by Meta raising its capex floor and Jensen Huang's remarks that scarce capital is holding back neocloud providers like CoreWeave. Apple briefly overtook Nvidia for the world's most valuable company on Friday, with Apple at ~$5.05–5.11 trillion versus Nvidia at ~$5.09–5.10 trillion. At GTC Berlin, Huang unveiled DSX POD pre-fabricated containers deployable in as few as 14 days and urged European nations to build $50B data centers. Seaport Research's Jay Goldberg (Sell, $180 PT) warned only 30 GW of the 55 GW of announced 2027 data-center capacity will materialize, a 45% shortfall. ByteDance, Alibaba, and Tencent ordered over 3 million export-compliant RTX PRO 5500 workstation GPUs worth more than $35 billion.

Tesla reported Q3 adjusted EPS of $0.48 beating the $0.43 estimate with revenue of $28.05B roughly flat YoY, and free cash flow surprised at positive $1.53B versus an expected burn of ~$4.9B. The company cut its full-year capex plan to approximately $20B from over $25B after Q3 capex of $4.73B fell short of the ~$7.5B consensus, raising questions about the pace of AI, robotaxi, and Optimus investment. A 71-year-old pedestrian was killed on Interstate 80 when a Tesla traveling ~70 mph in FSD mode struck him, renewing scrutiny of autonomous driving safety. SpaceX filed that any potential Tesla merger would require Musk's approval despite his recusal, with special committees of independent directors formed at both companies. Shares ended the week up ~4.93%, buoyed by the earnings beat and SpaceX merger speculation.