Amazon falls 7%, Intel plunges 25% premarket as AI spending worries hit tech
Nasdaq futures dropped 2% after disappointing September-quarter results from Amazon and Intel capped a rough week for technology earnings.
At a glance
- Amazon shares fell 7% and Intel 25% in premarket trading after disappointing September-quarter results.
- Nasdaq futures dropped 2% as the results capped a rough week for technology company earnings.
- Amazon kept its 2026 capital expenditure forecast at $220 billion and posted negative free cash flow again.
Amazon and Intel shares fell sharply in premarket trading on Friday, Oct. 30, 2026, after both companies reported September-quarter numbers that disappointed investors. The declines dragged Nasdaq futures down 2% and capped off a rough week for technology earnings.
Amazon shares were down 7% in premarket trading, while Intel was down 25%.
Amazon reported a third-quarter miss on both the top and bottom line, according to CNBC, while maintaining its capital expenditure forecast for 2026 of $220 billion. The company also reported negative free cash flow for a second consecutive quarter, a shortfall much larger than the one it recorded in the previous period.
AI spending under scrutiny
Investors are nervous about the massive spending on artificial intelligence by the largest technology companies and whether that outlay will pay off. That anxiety has been building through the week's earnings reports.
On Thursday, Alphabet shares closed 13% lower, their worst single-day drop in history, after the company also reported ballooning negative free cash flow. Microsoft shares rose after the company remained cash flow positive in the September quarter.
Negative free cash flow means a company is spending more cash than its operations bring in over a given period, a pattern that can unsettle investors when it is tied to heavy capital investment.
The week's moves show how closely shareholders are watching the cash consequences of AI-related building, not just the revenue that companies say the spending will eventually generate. Amazon's decision to hold its 2026 capital expenditure forecast at $220 billion came alongside results that missed expectations on both revenue and profit.
Intel's 25% premarket decline was the steepest of the two, and Amazon's 7% fall was enough, combined with Intel's drop, to pull index futures lower before the opening bell.
CNBC described the situation as a developing story and said further details would follow.
Source: CNBC Top News.
Questions and answers
- Why did Amazon and Intel shares fall?
- Both companies reported September-quarter numbers that disappointed investors. Amazon fell 7% and Intel 25% in premarket trading, pulling Nasdaq futures down 2%.
- Why are investors worried about AI spending?
- Investors are nervous about the massive AI spending by tech giants and whether it will pay off. Alphabet's ballooning negative free cash flow and record share drop added to those concerns.
- How did Alphabet and Microsoft perform?
- Alphabet shares closed 13% lower on Thursday, their worst single-day drop in history. Microsoft shares rose after it remained cash flow positive in the September quarter.
