Amazon falls 7%, Intel plunges 25% in premarket trading, as pressure mounts after earnings
Amazon and Intel shares dropped sharply in premarket trading after disappointing quarterly financial results. Amazon shares fell 7 percent following a miss on revenue and earnings, accompanied by a negative free cash flow for the second straight period and a maintained capital expenditure forecast of $220 billion for 2026. Intel shares plunged 25 percent driven by a weaker fourth-quarter outlook and a weak quarter that sent shivers through cooling chip stocks. The sell-off reflects rising anxiety among investors over heavy artificial intelligence spending and its impact on Big Tech cash flows.
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- ✓ Amazon shares fell 7 percent in premarket trading after missing revenue and earnings expectations.
- ✓ Intel shares plunged 25 percent in premarket trading following a weaker fourth-quarter outlook.
- ✓ Amazon maintained its capital expenditure forecast of $220 billion for 2026 and posted a second straight period of negative free cash flow.
What changed
Amazon and Intel reported quarterly financial results that triggered a sharp premarket stock sell-off.
Live updates
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Amazon and Intel Shares Plunge Following Earnings Reports
Amazon and Intel shares dropped sharply in premarket trading after disappointing quarterly financial results. Amazon shares fell 7 percent following a miss on revenue and earnings, accompanied by a negative free cash flow for the second straight period and a maintained capital expenditure forecast of $220 billion for 2026. Intel shares plunged 25 percent driven by a weaker fourth-quarter outlook and a weak quarter that sent shivers through cooling chip stocks. The sell-off reflects rising anxiety among investors over heavy artificial intelligence spending and its impact on Big Tech cash flows.
Why it matters
Major technology companies face intense scrutiny over heavy investments in artificial intelligence infrastructure, including a broader data center blitz burning through cash. The market reactions highlight growing tension between massive capital outlays and slowing core growth across the sector. Other major players experienced mixed earnings results during the same period.
What is confirmed
- Amazon shares fell 7 percent in premarket trading after missing revenue and earnings expectations.
- Intel shares plunged 25 percent in premarket trading following a weaker fourth-quarter outlook.
- Amazon maintained its capital expenditure forecast of $220 billion for 2026 and posted a second straight period of negative free cash flow.
What to watch next
- Ongoing quarterly earnings releases from other major technology companies
- Further market reactions to corporate artificial intelligence spending strategies
confidence 95%Sources used for this update (16)
- en.wikipedia.org — Amazon (company) - Wikipedia
- music.amazon.com — Amazon Music | Listen to songs, podcasts, & more
- www.amazon.com — Amazon.com. Spend less. Smile more.
- pharmacy.amazon.com — Amazon Pharmacy | Online Prescription
- www.amazon.jobs — Amazon Careers: Impact the Future, Today
- Reuters — Weak quarter for Intel sends shivers through cooling chip stocks
- The New York Times — Big Tech’s Data Center Blitz Is Burning Through Cash and Scaring Wall St.
- Bloomberg — Big Tech’s $750 Billion AI Bet Collides With Slowing Core Growth
- CNN — The markets are starting to act seriously weird. Blame AI
- CNBC — Amazon falls 7%, Intel plunges 25% in premarket trading, as pressure mounts after earnings
- www.livemint.com — Amazon, Intel shares crash up to 25% in premarket trade as AI spending concerns trigger tech sell-off - What's next?
- marketinsider.net — Amazon Falls 7%, Intel Drops 25% After Earnings
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