TLDR
- Meta Platforms shares fell nearly 7% despite strong earnings, as investors focused on its AI spending plans.
- Tesla’s quarterly net income dropped 44% to $787 million, but free cash flow reached $1.5 billion.
- SpaceX revenue rose 161% to $14.6 billion, and Elon Musk confirmed merger talks with Tesla.
- Lockheed Martin reported a record $292 billion order backlog and raised its yearly outlook.
- Amazon said its AWS cloud capacity is largely sold out through 2027.
US stocks ended a volatile week on 23 October 2026 as investors weighed strong earnings against the cost of AI spending. The S&P 500 fell 0.5% and the Nasdaq lost 0.7%.
The Dow Jones gained 0.4%. On Thursday, the Nasdaq dropped 2.6% as Wall Street questioned whether large AI investments will pay off.
Meta Shares Fall Despite Strong Earnings
Meta Platforms shares fell nearly 7% on Thursday. The drop came even though third-quarter revenue beat expectations.
The Facebook and Instagram parent reported $64.6 billion in revenue, up 26% from a year earlier. It also projected 2026 capital spending of $135 billion to $145 billion, mostly for AI infrastructure.
Meta posted a quarterly free cash flow deficit of $2.12 billion. A $9.9 billion legal settlement charge also weighed on operating profit.
Tesla Profit Drops 44%
Tesla reported quarterly net income of $787 million, down 44% from a year earlier. Revenue was flat at about $28 billion.
Adjusted earnings still beat expectations. Tesla generated $1.5 billion in free cash flow.
The company lowered its earlier capital spending expectations. It continues to invest in autonomous driving, robotics and AI infrastructure.
SpaceX Revenue Jumps 161%
SpaceX reported third-quarter revenue of $14.6 billion, up 161% from last year. Its AI business and Starlink satellite operations supported the growth.
The company posted net income of $4.4 billion. A year earlier, it reported a loss of $1.1 billion.
Elon Musk also confirmed that special committees at Tesla and SpaceX are discussing a possible merger. No agreement has been reached.
Lockheed Martin Reports Record Backlog
Lockheed Martin reported quarterly revenue of $20.7 billion, up 11% from a year earlier. Net earnings were $1.8 billion.
The company announced a record order backlog of $292 billion. That includes $52.5 billion tied to a multiyear missile defence contract.
Lockheed also raised its annual financial outlook. Demand came from military aircraft, missile systems and defence technology.
Amazon Says AWS Capacity Is Largely Booked
Amazon CEO Andy Jassy said Amazon Web Services capacity is largely sold out through 2027. Commitments also extend into 2028.
Amazon has outlined about $220 billion in capital spending for 2026. The company will release its third-quarter earnings on 29 October.
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