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Capitalist Insider: Oracle jumps 11% on $225B 2030 revenue forecast
Alphabet plunges after first double miss in years as AI burns cash
Nasdaq futures slide as Alphabet miss revives AI spending fears
Microsoft rises as Azure growth hits 48% and contrasts Alphabet miss
Memory chip makers surge on SK Hynix demand outlook through 2029
Bitcoin slips under $80,000 as $11 billion options expiry approaches
Alphabet plunges after first double miss in years as AI burns cash
Alphabet posted its first top- and bottom-line miss in nearly four years, sending shares down more than 10% as free cash flow turned sharply negative on heavy AI spending while search advertising slowed.
Search growth slows: Revenue from search and other advertising rose 12% but missed estimates as AI chat tools took a larger bite out of the core ad business.
Cash flow turns red: Free cash flow hit negative $9.07 billion against expectations of a positive result near $2.70 billion.
Capex stays elevated: Third-quarter capital spending reached roughly $51.4 billion; 2026 guidance was held at $195-205 billion with a significant increase expected in 2027.
Cloud still surges: Google Cloud revenue more than doubled, up 103%, remaining the one clear bright spot that beat expectations.
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Fed holds rates steady in 10-2 vote days before midterms
The Federal Reserve held its benchmark rate at 3.75%-4% in a 10-2 decision, with two officials dissenting in favor of a hike as Chair Warsh stressed the need for more data before the midterms.
Two officials dissent: Governor Lisa Cook and Cleveland Fed President Beth Hammack both voted for a quarter-point increase, Cook’s first dissent since joining in 2022.
Inflation remains elevated: The statement said inflation remains elevated and the committee will wait for the accumulation of more information before acting again.
Fewer meetings ahead: Warsh said one 2027 meeting will focus only on strategy with no rate vote, and two meetings in 2028 will be strategy-only.
December hike still priced: Traders continued to price a high probability of another increase in December despite the pause.
Nasdaq futures slide as Alphabet miss revives AI spending fears
U.S. stock futures pointed lower Thursday after Alphabet’s results reignited anxiety about runaway AI spending, dragging the Nasdaq while other Big Tech names were mixed.
Alphabet leads the drop: Shares faced a potential record post-earnings loss of more than 10%, pulling futures lower across tech.
Microsoft provides contrast: Microsoft rose on solid results and 48% Azure growth, limiting broader damage.
Focus shifts from Fed: Markets looked past the prior day’s rate hold and refocused on earnings and the sustainability of AI capital outlays.
Memory stocks still firm: Earlier strength in memory names on strong demand outlooks was overshadowed by the Alphabet reaction.
Microsoft rises as Azure growth hits 48% and contrasts Alphabet miss
Microsoft shares gained after the company delivered solid results led by 48% growth in Azure, providing a counterpoint to Alphabet’s disappointment on AI spending and search.
Azure drives the beat: Cloud growth remained robust, helping overall revenue rise roughly 19% and supporting the stock.
Capex still heavy: Investors continued to scrutinize the pace of AI-related investment even as results cleared the bar.
Earnings focus intensifies: The report landed amid a week when a large portion of the S&P 500 is reporting, keeping attention on Big Tech cash generation.
Memory chip makers surge on SK Hynix demand outlook through 2029
Memory stocks advanced after SK Hynix posted record results and signaled that high-bandwidth memory and DRAM demand is sold out well into the later years of the decade.
Record quarter: Operating profit and revenue set highs as AI-related memory orders remained strong.
Sold-out visibility: Capacity is committed through long-term agreements covering a large share of 2027 and 2028 production.
Nasdaq still lagged: The broader tech index underperformed despite the memory strength ahead of major earnings.
Bitcoin slips under $80,000 as $11 billion options expiry approaches
Bitcoin traded back toward $80,000 after the Fed hold reinforced rate-hike expectations, with traders bracing for an $11 billion options expiration.
Fed reaction muted: The cryptocurrency barely flinched at the rate decision even as December hike odds rose.
Options overhang: A large expiry is set for late October, adding potential volatility before the midterms.
ETF inflows mixed: Bitcoin ETFs saw inflows over recent days even as the spot price softened.
The bigger they get the more they tend to fall