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Tech stocks keep tumbling.

After Meta’s earnings sparked fresh fears over AI spending, the tech sector took a beating during trading as the Nasdaq and S&P 500 posted their worst daily performances since June and July, respectively.

The selloff began at the open after Meta disclosed $825 billion in future spending commitments. The news came on the heels of last week’s CoreWeave-debt-induced slump, which saw neocloud and chip stocks hammered over multiple sessions.

Discussing that specific area of the AI trade with CNBC this morning, Nvidia CEO Jensen Huang remarked that demand for neoclouds is “off the charts,” though a lack of capital was slowing growth. Those comments fanned the flames, pushing CoreWeave down 10% and sending Huang’s own Nvidia to its worst day in four months.

Adding to the pain, crude oil jumped to its highest price in months, prompting energy companies attached to the AI trade to tumble alongside tech. GE Vernova led the way, falling nearly 11%, while others like Vistra, Bloom, and Talen sank more than 7%.

One silver lining? Cheaper borrowing. Treasury yields logged their biggest drop since 2024, with the 10-year breaking below 5% as investors cycled out of tech into safer havens.

📸 : Getty

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Zuck & Co. are zooming.

Reporting third-quarter results, Meta revealed a beat on revenue and EPS, provided encouraging guidance, and even announced new shares as the tech giant continues to pursue its AI aspirations.

Over the period, the company generated record revenue, boosted in part by the launch of its AI assistant Muse last month. On the company’s earnings call, CEO Zuckerberg revealed that over 10 million people across the US and Canada had already set up accounts.

Meanwhile, capex came in under estimates at $34.9 billion, though the Facebook parent narrowed its full-year capex guidance by raising the low end of its own projection.

The new shares, set to be issued in January, will be non-voting Class C common stock distributed via a dividend. The move effectively acts as a 2-for-1 split, with existing shareholders receiving one share of the new stock. Meta explained the decision as a means of raising capital and retaining talent while maintaining Zuck’s control over the company.

Meta shares jumped as much as 7% in extended trading.

📸 : Getty / Meta

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Rockets are out, AI is in.

That’s how Q3 went for Elon Musk and SpaceX. Reporting the company’s latest earnings this afternoon, Musk’s rocket-building, satellite-launching, and AI-powered giant saw its revenue soar 161% year-over-year after its AI business posted sales growth of over 800%.

Not to be outdone by its ‘Super Intelligence’ segment, SpaceX’s connectivity arm—which includes Starlink—still provided most of the company’s profit. Operating income for the connectivity business doubled to $2.4 billion, the AI business swung to a profit of $431 million, and the company’s space segment, ironically, posted a loss of $7 million.

Looking ahead, CEO Musk made the bold prediction on the earnings call that annual recurring revenue for SpaceX will fall somewhere between $500 billion and $1 trillion by the end of next year. And with Tesla showing off its thruster-powered Roadster last week, Musk also revealed that the boards of both companies have formed special committees to weigh a potential merger, a move Musk himself called “a good idea.”

Safe to say, investors were more than happy with the results. Shares of SpaceX rose around 8.5% in after-hours trading.

📸 : Getty

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After investing $600 million in Bending Spoons over the summer, Berkshire Hathaway went back for seconds.

The conglomerate agreed to invest an additional $330 million in the Milan-based tech firm last week, giving it a total 4% ownership stake and signaling an appetite for more risk from the historically level-headed business. Shares of the Italian company, which went public in July, surged 40% on the news last Wednesday.

For those distracted by its unique name, Bending Spoons is something of a spiritual successor to Berkshire. A holding company of its own, Bending Spoons has gobbled up struggling throwback favorites like AOL, Vimeo, Evernote, and Eventbrite, with plans to optimize the digital dinosaurs for efficiency. CEO Luca Ferrari has even cited Berkshire as inspiration for his company in the past.

Given that the Omaha-based conglomerate rarely bet on tech not named Apple or Alphabet during Buffett’s tenure, the move is a sign that CEO Greg Abel may be more interested than his predecessor in riskier, higher-growth tech stocks. After all, $330 million won’t put too much of a dent in Berkshire’s $365 billion cash pile.

📸 : Getty / Berkshire Hathaway / Bending Spoons

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Bad week to be in the AI business.

Capping a losing week, stocks fell further on Friday as AI jitters continued to roil markets. Leading the way was the Nasdaq, tumbling nearly 4.5% since Monday, while the Russell 2000 and S&P both fell 3% and 2%, respectively. Bolstered by fears around AI borrowing habits and rising oil prices, the Cboe Volatility Index (VIX) jumped 30% for the week to its highest level since June.

Acting as a canary in the proverbial coal mine, neocloud provider Coreweave helped kick off the fire sale days earlier after news of its debt pile touching $51 billion promptly infected the rest of the AI trade. For the week, Coreweave shed nearly a quarter of its value, dragging other AI buildout names with it.

Even Nvidia CEO Jensen Huang, who issued a vote of confidence in Coreweave on Thursday, couldn’t stop the contagion from reaching chip stocks. Names like Marvell, Sandisk, and Micron all suffered major losses, leading the VanEck Semiconductor ETF to post its biggest weekly fall since April.

📸 : Getty

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It was a good year to be the Harvard fund.

In its annual financial report released today, Harvard University revealed that its endowment rose to a record $68 billion in fiscal 2026. For the 12 months ending June 30, the fund outperformed the S&P 500, gaining 27.1% compared to the index’s 22.3% total return. It was the endowment’s strongest year since 2021, rising in value by 19.3%, or $11 billion.

While the fund holds a stake of more than $2 billion in SpaceX, revealed in an August SEC filing, its largest asset allocations went to private equity at 46%, with hedge funds making up an additional 31%. Per that filing, the endowment portfolio held just 19 stocks valued at $4.3 billion.

Faced with mounting pressure and funding cuts from the federal government, the school raised $1.5 billion in donations and distributed $2.6 billion from the endowment, amounting to nearly 40% of the university’s total operating revenue.

📸 : Getty / Harvard

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Anthropic is making a major case for the biggest IPO in history.

The company behind Claude told prospective investors yesterday that its third-quarter revenue hit $16.8 billion, as demand for its AI coding tools and enterprise products continues to grow, the Financial Times reported.

Though sales for the three-month period dwarfed its 2025 full-year figure of $4.6 billion, Anthropic’s Q3 revenue represented just a 45% jump over Q2 results, which saw an increase of 145% from Q1. That slowdown in growth could give some investors pause, as the company’s historic $2 trillion target valuation starts to see more scrutiny.

In addition to those quarterly details, Anthropic said it reached profitability on an adjusted basis, a notable milestone for an AI company pouring billions into computing power and infrastructure. According to those familiar who spoke with Bloomberg, the ‘startup’ also shared that it’s generating positive free cash flow, had gross margins of 85%, and a positive adjusted operating margin over 11% for the period.

With its IPO coming before year’s end, Anthropic is planning to start marketing the offering as soon as November 9th. That would put the AI giant on schedule to make its public market debut just ahead of Thanksgiving.

📸: Getty

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When it rains, it pours.

Yesterday, Bank of America (BofA) was slapped with more than $1.2 billion in penalties for allegedly violating anti-money laundering and sanctions laws. The fine is the third-largest ever handed down by the Treasury Department, behind Binance in 2023 ($3.4 billion) and TD Bank in 2024 ($1.3 billion).

Regulators found that BofA failed to report more than $5 billion in suspicious transactions, including over $1 billion involving potential national security risks linked to Chinese money laundering networks and illicit activity along the US-Mexico border. The bank also admitted to longstanding deficiencies in its compliance systems, despite previous warnings from regulators.

Making matters worse, BofA went on to report quarterly earnings this morning, delivering itself yet another blow. Even excluding the historic regulatory charge, the second-largest US bank still missed Wall Street estimates.

That double whammy promptly sent shares tumbling as much as 8% before closing down 4.8%. It was the bank’s largest post-earnings fall in 16 years.

📸 : Getty / Bank of America

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Like the smartest kid in class getting a “B” on the test, Delta’s earnings might be an omen for the rest of the industry.

Yesterday, the most profitable US airline cut its full-year guidance and reported lower-than-expected earnings as surging fuel prices courtesy of the Iran war strained its otherwise booming business. It was the first time in two years that the airline missed estimates.

“All of it’s fuel,” CFO Erik Snell told reporters as he explained the changes. The carrier said it paid $500 million more on fuel in Q3 than projected in July, which brought its gas bill to $4.1 billion, a 62% increase from last year.

To offset some fuel costs, Delta — like its rivals — honed in on wealthy flyers, as revenue from premium seating rose 18%. Investors will get a better idea of how this strategy worked for others when United, Southwest, American, and more report later this month.

Even in the face of strong travel demand that’s expected to continue through the holidays, Delta couldn’t shake the oil shocks. Despite this, it still has something the rest don’t: It’s the only major US carrier that owns its own oil refinery.

📸 : Getty

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“Can you hear me now?”

For the first time in a long time, there could be a new major player in the wireless carrier market. On Thursday, Elon Musk’s SpaceX struck an $8 billion deal to purchase a nationwide spectrum portfolio, the Wall Street Journal reported.

For those who don’t speak telecom, a spectrum portfolio is a collection of cellular licenses for specific frequencies over certain geographic areas — i.e., the airwaves a future SpaceX service would run on.

The licenses SpaceX has agreed to buy, from tech and communications investment firm Grain Management, are in the 800-megahertz band. The low-band portfolio is intended to improve SpaceX’s indoor mobile coverage.

Though the deal still needs FCC approval, SpaceX, in its own announcement, said that the move addresses “one of the key remaining technical gaps” for Starlink Mobile, the wireless network it plans to launch in late 2027.

With SpaceX stating its intentions so plainly, the news sent telecom giants into a historic rout. Verizon closed down 8.8% for its worst day since 2002, T-Mobile fell 13.3% for its worst day since 2013, and AT&T fell 9.8% for its worst day since 2000. SpaceX shares, meanwhile, rose a modest 1.3%.

📸 : Getty

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Starbucks has explored a takeover of Chipotle, the Financial Times reported Thursday, with sources saying the coffee chain has worked with advisers in recent months on a proposal. It would reunite CEO Brian Niccol with the burrito chain he ran for six years before joining Starbucks in 2024, where he is credited with turning Chipotle into one of the restaurant sector’s strongest growth stories. Chipotle shares jumped about 6% on the report and Starbucks fell about 3%, and neither company has commented. Chipotle has nearly 4,000 US restaurants and about 100 international locations, and its stock has lost nearly half its value since Niccol left.

At a market cap of nearly $39 billion, Chipotle would be the largest takeover in restaurant industry history, easily passing Burger King’s $11.4 billion purchase of Tim Hortons in 2014. William Blair estimates Chipotle’s enterprise value is above $40 billion and that a deal could cost closer to $50 billion once a typical premium is added, against a Starbucks worth about $107 billion. Analysts are split on the logic, with some pointing to faster international expansion through Starbucks’ licensed partners in Europe, while eToro’s Lale Akoner warned a deal could require heavy borrowing or issuing shares, and without a compelling financial case investors may see it as an expensive distraction.

If you are catching the latest news, you must be following @volateality

#finance #financememes #investing #stock #investmentbanking

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What is Brian Niccol cooking?

A little more than two years after the Starbucks CEO jumped from Chipotle to the coffee chain, it appears the boss is interested in acquiring his old stomping grounds. The Financial Times (FT) reported this morning that Starbucks has explored purchasing the fast-casual Mexican chain.

Following the news, shares of Chipotle rose as much as 8% before closing up 6.2%. Meanwhile, Starbucks tumbled nearly 6% before paring those losses ahead of the bell to finish down 0.4%.

Since Niccol’s departure from Chipotle, both chains have seen shares lag behind the broader S&P 500. Starbucks’ stock has risen around 20% since announcing Niccol’s hiring in August 2024, while Chipotle has seen shares crater more than 40% over that same period.

Though FT reported that Starbucks has been working with advisors on a potential proposal, it remains unclear how serious the coffee giant is about its interest.

📸 : Getty / Starbucks / Chipotle

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