Magnificent 7 stocks news, Oct 31, 2026

AMZN spent the early part of the week awaiting Thursday's Q3 report amid AI-capex anxiety that had already left the stock well below its August high. Results came in mixed: total revenue of $201.9B and EPS of $1.89 both missed consensus, while AWS grew 39.3% to $46B — the fastest in nearly five years — and operating margin hit a record 13.9%. Q4 guidance of $240-247B came in below the $244.51B estimate, and quarterly capex surged to $77.3B, pushing trailing free cash flow to negative $42.4B. The stock initially dropped about 7% premarket but recovered most of the decline by Friday, helped by CEO Andy Jassy's projection of AWS growth above 40% in 2027 and 2028 and a $578B AWS backlog. Elsewhere in the week, the FCC approved Amazon's $11.5B Globalstar satellite deal and AWS signed a $2B multi-year AI infrastructure agreement with Verizon.

GOOGL entered the week already down sharply amid broad AI-capex skepticism, and Wednesday's Q3 report turned the slide into a rout. Revenue rose 25% to $127.6B but EPS missed by $0.90, partly on an $8.7B equity-investment loss, while quarterly capex of $51.4B — up 114% year over year — drove free cash flow to negative $9.07B. Google Cloud was a bright spot, with revenue up 103% to $30.7B and cloud operating income jumping to $11.1B, but Alphabet's warning that capex will rise further in 2027 overwhelmed the beat. Shares plunged 8% after hours Wednesday and then dropped 12.6% Thursday — the stock's worst-ever single-day selloff — wiping out roughly $500B and triggering a death cross as the 50-day moving average fell below the 200-day. The week ended with Alphabet's October market value loss reaching about $766B, its worst month ever, alongside a Citizens downgrade to Market Perform and reports it is in talks to join the $185B Golden Dome program.

META's week was defined by its largest-ever equity raise, announced Monday at up to $95B and upsized to $97.5B by Tuesday after the Class A deal was oversubscribed fivefold. Nvidia committed $3B and AMD $1B to the offering, with Nvidia also expanding the Muse AI partnership, while the raise funds 2026 capex of $135-145B. The financing came alongside fresh legal and regulatory pressure: a New Mexico judge ordered a $25B privacy payment, an Oslo court temporarily blocked Meta's new scraping terms, and the UK CMA opened a monopoly-abuse investigation into its AI scraping of news publishers. Meta also settled its remaining bellwether addiction claims with plaintiff K.D.B., leaving only Snap as a defendant in the Los Angeles trial opening Nov 4. S&P cut its outlook to negative on Friday, projecting capex above $225B in 2027 and free-cash-flow losses, even as a fair value estimate was raised to $848.38 citing Muse traction and the financing.

MSFT opened the week with a startling headline: a Voluntary Exit Offer to roughly 60,000 employees — about 27% of its 223,000-person workforce — across the US, Canada, UK and India, as the company funds AI infrastructure spending guided at over $175B for 2026. Wednesday's fiscal Q1 earnings then delivered a clean beat, with revenue of $92.28B, adjusted EPS of $4.89, and Azure growth of 48% that topped both estimates and Microsoft's own guidance; free cash flow of $18.6B also came in far ahead of expectations. The only blemish was a 12% drop in commercial bookings and a flat $677B backlog. On Thursday Microsoft announced a plan to sell as much as $25B in bonds across up to 10 tranches to help fund capex of over $50B in fiscal Q2. The stock still slipped Friday as investors pushed back on AI spending broadly, with CFO Amy Hood noting internally that only 'very few people' are expected to accept the buyouts.

NVDA's week swung from a Monday bounce — up 3.1% on Anthropic's IPO filing, SpaceX's $40B GPU debt raise and a Morgan Stanley top-pick call — to a difficult close. The company committed $3B to Meta's equity offering and announced expanded Oracle collaboration on Vera Rubin NVL72 systems, but regulatory clouds gathered: the DOJ opened a probe of the $13B Hugging Face acquisition, asking whether it would give Nvidia control of a key model-distribution channel, and the New York Times reported on an alleged Chinese spy link that Nvidia called 'groundless speculation.' By Friday, reports that Nvidia may provide billions in credit guarantees for an Nscale data center serving Anthropic deepened circular-financing fears, and the stock fell 4.1%, shedding about $212B in market value as Apple reclaimed the top market-cap spot. China datacenter AI chip shipments were also reported down 44% year over year in H1. Fiscal Q3 earnings are set for Nov 17.

TSLA was the portfolio's standout, rising 7.41% for the week despite a soft post-earnings start. The SpaceX merger story advanced materially: both boards' special committees are negotiating, Musk said the deal needs 1.98 billion Tesla 'yes' votes — a 50% bar of all shares outstanding — and Barclays mapped an all-stock swap implying about 0.7 SpaceX shares per Tesla share with a combined entity near $3.6T, alongside a Dec 6, 2026 shareholder meeting. The robotaxi narrative also gained ground, with the service announced as 'coming soon' to San Antonio, Jacksonville, Las Vegas and Phoenix, Houston's geofence expanding over 900%, and ARK reiterating a $4,400 target by 2031. Operating details were mixed: R&D jumped 69% to $2.76B while operating profit fell 56%, and full-year capex guidance was cut to about $20B from $25B+. The week closed with NHTSA setting Oct 30 as the deadline for Tesla to respond on the basis for Cybercab certification, a review not expected to conclude that day.