Magnificent 7 stocks news, Nov 5, 2026

Amazon declined 2.19% as the post-election rally faded, with the stock still comfortably above the lower end of its 52-week range. Morningstar cut its fair value estimate to $280 from $300 as it took over coverage, citing rising infrastructure costs even as it acknowledged Q3 revenue of $202 billion, AWS growth of 39% and a record 13.9% operating margin. The company announced a partnership with Uber Eats giving U.S. Prime members $0 delivery on restaurant orders of $25 or more, replacing its Grubhub deal, while DoorDash shares plunged 10% on the news. Institutional flows were mixed: State Street's XLY ETF sold $50 million of Amazon on Nov. 3, its largest single-name sale in an all-sell rebalancing, though Amazon remains XLY's top holding at 21.88%. Anthropic is preparing an IPO expected later this month at a projected $1.5–2 trillion valuation, against Amazon's $18 billion investment plus up to $15 billion in financing.

Alphabet fell 2.20% and now sits near the bottom of its 52-week range, reversing the prior day's post-election gains. Focus centered on AI capital spending: Q3 capex exceeded operating cash flow by roughly 22% ($51.4B versus $42.3B), and 2026 capex is guided at $195–205 billion, more than double last year's ~$90 billion. Combined Q3 buybacks across Alphabet, Amazon, Meta, Microsoft and Oracle fell to $4.4 billion, the lowest since Q3 2017, with Alphabet and Meta having bought back no shares in 2026. Google Cloud grew 103% to $30.7 billion with $11.1 billion operating income and a backlog five times annualized quarterly sales, while Search revenue growth decelerated from 17% to 12% as AI Mode monetizes at a lower rate. Morningstar raised its fair value estimate to $450 per share, and the stock trades at 15.3x forward earnings with an RSI of 28.6, the most oversold in the Mag7.

META dropped 3.96%, the second-largest decline among the holdings, with the stock about 40% below its 52-week high. Meta, Google and TikTok sued California over teen social media law AB 1709, with Meta arguing it violates the First Amendment and Section 230 by overriding its editorial judgment. The company priced $25 billion of Class A common stock at $625 per share, roughly 1.5% dilution, plus $12.5 billion of mandatory convertible preferred, with total equity financing potentially exceeding $100 billion including underwriter options. Q3 capex of $34.91 billion exceeded operating cash flow of $32.79 billion, leaving free cash flow at negative $2.12 billion, and Meta president Dina Powell McCormick said Democratic midterm wins will make building new data centers 'a lot harder.' Meta also paused a terms-of-service change after publishers raised concerns about AI scraping, and COO Javier Olivan disclosed stock sales under a pre-arranged Rule 10b5-1 plan.

Microsoft fell 3.58% after hitting a record high in the prior session, though the shares remain in the upper portion of their 52-week range. The company will not exercise an option to more than double its Nscale agreement at a Ward County, Texas data center, following its earlier withdrawal from anchoring Nscale's Loughton, Essex project after power delays pushed supply into the 2030s. CFO Amy Hood cited third-party capacity delays including cabling issues, a generator fire and hardware delays at IREN's Texas campus, with a revised timeline that may slip several weeks or months. Microsoft offered buyouts to roughly 60,000 employees, about 25% of its workforce, helping create fiscal room for $170 billion in planned capital spending this year, though the tenure-based structure risks losing skilled AI talent. Bank of America added Microsoft to its Global Contenders portfolio, and Gina Hinojosa's Texas gubernatorial win adds regulatory uncertainty for data center developers.

NVDA plunged 9.26%, its steepest single-day drop since March 2025, leaving the shares near the lower end of their 52-week range after recently overtaking Apple as the world's most valuable company. House Republican leaders invited CEO Jensen Huang for a closed-door briefing the day after third-quarter earnings over his reported relationship with a Chinese intelligence asset identified by U.S. intelligence. Nvidia approached Apollo about retrofitting telecom buildings across 20 states for AI data centers, offering roughly 1 GW of capacity to sidestep emerging data-center moratoriums. Bank of America added Nvidia to its Global Contenders portfolio, citing low forward P/E, earnings growth and price momentum, and put its fair-value upside at +61%, the largest among Magnificent Seven stocks. Jim Cramer urged Nvidia to deploy its $235 billion authorized buyback, while IBM, Supermicro and Nvidia announced a collaboration delivering up to 56x faster time-to-first-token on a 120-billion-parameter model.

TSLA sank 10.77%, the worst session in the portfolio, and now trades near the lower bound of its 52-week range. Democrats plan investigations into Musk's DOGE role and government contracts, and only 3 of 37 House and 6 of 7 Senate candidates he backed with roughly $445 million in spending won. Goldman Sachs estimates Democratic state and local wins could trigger short-term data center moratoria affecting ~45% of planned US capacity expansion, pressuring Tesla's energy unit, which sells storage to data center operators. Tesla filed its response to NHTSA's Special Order on Cybercab safety certification by the Oct. 30 deadline but asked the agency to keep the entire filing confidential, with penalties reaching $139 million for incomplete answers. Citigroup increased its Tesla stake 10.1% to 8.69 million shares in Q3, while Ross Gerber said the SpaceX-Tesla merger is now 'at risk' given regulatory scrutiny.