Magnificent 7 stocks news, Oct 28, 2026

The FCC approved Amazon's $11.5 billion Globalstar satellite deal. AWS also signed a $2 billion multi-year AI infrastructure agreement with Verizon covering agentic and generative AI systems for customer service and network operations. Amazon cut a small number of devices and services roles, following about 1,000 retail job cuts earlier this month, and an internal memo warned engineers against 'tokenmaxxing' AI use as tool costs mount. Options markets imply roughly a 7% swing around Thursday's Q3 report, where BofA's Justin Post expects AWS operating margins of 39% versus the Street's 34.7% with a $320 target, while UBS argues consensus is too conservative on AWS 2027 profitability. The shares advanced on the day.

Alphabet reported Q3 revenue up 25% to $127.6 billion but EPS missed by $0.90, and the stock fell about 8% after hours. Net income slid to $26.17 billion from $34.98 billion, partly reflecting an $8.7 billion loss on equity investments. Google Cloud beat with revenue up 103% to $30.7 billion and operating income of $11.1 billion, yet capex of $51.4 billion pushed free cash flow to negative $9.07 billion. Operating margin still improved to 31.8%, the Gemini app reached 1 billion users, and Alphabet declared a $0.22 dividend payable Dec. 14. The shares gained during the regular session before the after-hours drop.

Jury selection began in the Meta Snap teen addiction trial, with Meta now facing claims only from plaintiff K.D.B. after settling with co-plaintiff S.J. An earlier bellwether case ordered a combined US$6 million penalty against Meta and YouTube, offering a potential damages benchmark. Meta indefinitely delayed commercial terms that would let it scrape business websites, while an Oslo court temporarily blocked its new user terms due November 20. The company priced about $37.5 billion in equity, including 40 million Class A shares at $625 and 250 million convertible preferred depositary shares at $50, with common-share proceeds not collected until roughly November 19, 2027. Court documents show Meta considered a 'whisper campaign' to discredit Jonathan Haidt, and the shares slipped.

Microsoft's Q1 beat estimates with revenue of $92.28 billion and adjusted EPS of $4.89, led by Azure revenue of $33.17 billion, up 48% year over year. Capex including finance leases was $45.2 billion, below the company's own ~$50 billion projection and the $50.7 billion analyst average, while free cash flow of $18.6 billion far exceeded the $8.54 billion expected. Commercial bookings fell 12% and the $677 billion commercial backlog did not grow from the prior quarter, a soft spot for revenue visibility. CFO Amy Hood wrote that Microsoft expects 'very few people' to accept the voluntary buyouts offered to about 60,000 employees. The shares were essentially flat on the day.

The DOJ is asking whether Nvidia's proposed $13 billion Hugging Face acquisition would give it control of a fundamental distribution channel for AI models and software. The wider investigation covers acquisitions, investments and sales practices, including scrutiny of the Run:ai and SchedMD purchases and a 2025 Groq arrangement, with no formal enforcement action announced. Nvidia still expects to close the Hugging Face deal in the first half of 2027 and has vowed to keep the platform open to rival chips and cloud providers. It expanded Oracle collaborations for multi-gigawatt Vera Rubin superclusters and deepened its Meta partnership for Muse AI agents, while The Information reported OpenAI plans to buy Google's TPU chips to reduce Nvidia dependence. The shares declined, with fiscal Q3 FY2027 earnings set for November 17.

A House bill introduced by Rep. Greg Landsman would double the federal new-EV credit to $15,000 and lift the used credit to $8,000 as permanent law, with Tesla likely the biggest beneficiary as the top US EV seller, though sourcing rules could limit how many Teslas qualify. Tesla confirmed it is officially entering Vietnam with five open roles after registering Tesla Motors Vietnam LLC in Ho Chi Minh City on Sept 11. Musk acknowledged a Tesla-SpaceX merger would require approval from a majority of ALL Tesla shares, with no terms agreed by either special committee. Its expanded Houston robotaxi geofence drew criticism, with the app rejecting pickups inside downtown Houston. Tesla Semis began charging at Pilot and Flying J truck stops in Georgia and California, the first public Semi charging outside California, and the shares eased lower.