TLDR
- Meta, Tesla, IBM and Lam Research all fell in premarket trading Thursday after earnings, as worries about AI spending returned.
- Meta beat revenue and profit estimates but raised its spending outlook, and free cash flow turned negative.
- Tesla missed on operating profit, cut its 2026 capital spending forecast and lowered its long-term sales target.
- S&P 500 futures fell 1.1% and Nasdaq 100 futures dropped 1.7%.
- Lockheed Martin, Dow, CSX and Spotify rose after strong results or outlooks.
Stock futures fell on Thursday as investors reviewed earnings from Meta Platforms and Tesla. Concerns about the cost of artificial intelligence spending weighed on technology shares.
By 7:16 a.m. ET, S&P 500 futures were down 1.1%. Nasdaq 100 futures had dropped 1.7%, and Dow futures were off 0.7%.
Meta and Tesla Earnings Pressure Tech Shares
Meta Platforms fell more than 1% in premarket trading. The company beat third-quarter estimates, with revenue up 26% to $64.60 billion, compared with the $63.33 billion consensus. Earnings per share were $3.83, ahead of the $3.57 estimate.
Meta forecast fourth-quarter revenue of $73 billion to $76 billion. It raised its annual capital spending outlook to $135 billion to $145 billion. Third-quarter free cash flow turned negative, and the results included a $9.89 billion legal charge tied to a settlement with 52 state attorneys general over teen mental health litigation.
Tesla fell as much as 5% in premarket trading to $367.20. The company reported adjusted earnings per share of $0.48, above the $0.43 to $0.44 estimate. Free cash flow reached $1.53 billion, well above expectations.
Net income for common shareholders fell 29% to $787 million. Automotive revenue declined 3% because of lower average selling prices and battery supply limits.
Tesla cut its full-year capital spending forecast to about $20 billion from more than $25 billion. Elon Musk said the company is targeting 5 million vehicle sales by the end of the decade, down from his earlier goal of 20 million.
Tesla expects to ship Optimus humanoid robots to corporate customers by the end of 2027. It does not expect meaningful robotaxi revenue until 2027 or 2028.
Chip, Tech and Industrial Stocks Move
Nvidia and Micron Technology also fell in premarket trading. CoreWeave dropped 4%.
IBM slid as much as 5.7% even though it beat third-quarter estimates. Adjusted earnings per share were $2.95, and revenue was $17.1 billion. Its gross margin of 58.5% missed the 59.1% estimate. CEO Arvind Krishna said some customers question whether AI investments are producing measurable returns.
Lam Research fell as much as 8.4% after reporting record revenue of $8.22 billion, up 54% from a year earlier. Its operating margin topped 40% for the first time.
SpaceX fell 2.2%. Musk would not discuss a possible SpaceX and Tesla merger on the earnings call.
Lockheed Martin rose nearly 2.5% after raising its 2026 sales outlook to $80 billion to $82 billion. Its backlog hit a record $292 billion.
Dow gained more than 2.5% on higher polyethylene prices and cost cuts. CSX rose 2.4% after beating third-quarter estimates. Spotify climbed more than 3.8% after forecasting fourth-quarter operating income of €820 million. Rollins dropped 7.3% after missing revenue estimates.
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