Amazon Earnings to Test Big Tech 05/02/2026

HOT stories for today

Market wrap:

• U.S. stocks declined on Wednesday as a deepening technology selloff weighed on the market, with Advanced Micro Devices leading the decline. The S&P 500 slipped 0.51%, while the Dow Jones Industrial Average fell 0.53%. The Nasdaq Composite dropped 1.51%. Adding to risk-off sentiment, bitcoin slid more than 3% after briefly falling below $73,000. AMD shares tumbled 17% after the chipmaker’s first-quarter forecast disappointed some analysts. Chief Executive Officer Lisa Su defended the outlook in an interview with CNBC, saying demand has strengthened in recent months and that “AI is accelerating at a pace that I would not have imagined.” 
• Weakness spread across the semiconductor sector, with Broadcom declining 3.8% and Micron Technology dropping 9.5%. Software stocks also remained under pressure, with Oracle falling 5% and CrowdStrike extending its losses by more than 1%. Microsoft bucked the trend, rising nearly 1%. Fresh economic data added to investor caution. ADP reported private payroll growth of just 22,000 jobs in January, well below economists’ expectations for a 45,000 increase. The report typically precedes the government’s nonfarm payrolls release, which was delayed after the partial U.S. government shutdown that ended Tuesday when President Donald Trump signed a funding bill into law. Qualcomm slid 9% after issuing a weaker-than-expected forecast tied to a global memory shortage. Silver resumed its decline, plunging 13% after a brief rebound. Investors now turn to earnings from Tapestry and Peloton Interactive before Thursday’s open and await Amazon’s results after the close. Weekly jobless claims data is also due Thursday morning.

Alphabet’s $185B AI capex plan spooks investors

• Alphabet said 2026 capital expenditures could more than double from 2025, projecting $175 billion to $185 billion as it ramps up AI compute for Google DeepMind, meets “significant” cloud demand, and funds other bets, CFO Anat Ashkenazi said Wednesday. The spending outlook tempered an otherwise solid fourth-quarter beat on revenue, earnings, and cloud, sending shares lower in extended trading, a sign investors remain wary of escalating AI infrastructure costs. A
• Alphabet’s guidance also outstrips peers’ signals, with Microsoft pointing to sequentially lower capex this quarter and Meta forecasting $115 billion to $135 billion for 2026. Executives argued the investment is demand-driven: Google Cloud backlog rose 55% sequentially to $240 billion, and cloud revenue climbed nearly 48% year over year. CEO Sundar Pichai called compute capacity, from power to supply chains, the key constraint as the company accelerates its buildout.

Stocks on the move:

• Qualcomm (QCOM): shares sank more than 8% after a global memory shortage weighed on its outlook. The company guided fiscal Q2 adjusted EPS to $2.45–$2.65 on revenue of $10.2B–$11.0B, versus LSEG expectations for $2.89 and $11.11B.
• Align Technology (ALGN): The Invisalign maker jumped more than 11% after fourth-quarter results beat estimates. Adjusted EPS was $3.29 versus $2.97 expected, and revenue of $1.05B topped the $1.03B consensus.
• Wolfspeed (WOLF): the semiconductor manufacturer slid about 9% after posting a fiscal Q2 adjusted loss of $6.11 per share and guiding current-quarter revenue to $140M–$160M, down from $168M, citing accelerated customer purchases earlier in the fiscal year.
• Arm Holdings (ARM): U.S.-listed shares fell 6.6% as fourth-quarter guidance only narrowly topped expectations. Arm guided adjusted EPS to roughly $0.58 versus $0.57 expected, while fiscal Q3 adjusted EPS of $0.43 on $1.24B revenue beat estimates for $0.41 and $1.22B.
• Snap (SNAP): shares rose 5% after fourth-quarter revenue came in above forecasts. Snap posted EPS of $0.03 on $1.72B revenue versus $1.70B expected, while global ARPU was $3.62, topping the $3.56 StreetAccount estimate.

Watchlist: GOOGL, AMZN, NVDA, QCOM, WOLF, SNAP, ARM, ALGN

Key Economic Events Today:

EST time

08:30 am: Unemployment Claims
10:50 am: USD FOMC Member Bostic Speaks


Earnings

BMO (Before Market Open): Shell Plc (SHEL), Linde Plc. (LIN), Banco Bilbao (BBVA), Bristol.Myers (BMY), KKR (KKR), ConocoPhillips (COP

AMC (After Market Close): Amazon (AMZN), Fortinet (FTNT)? Roblox (RBLX)



The TEFS Analyst team wishes you a successful day!