【US Pre-Market】AI Stocks Under Pressure as Tesla Drops Over 5%, IBM Falls Nearly 5% Ahead of WDC Earnings

Lockheed Martin (LMT) rose about 4.6% in pre-market trading. The company's third-quarter sales grew 11% year-over-year to $20.7 billion, net profit rose 14% to $1.8 billion, and earnings per share came in at $7.97; its backlog reached a record $292 billion. The company also raised its full-year guidance for sales, earnings per share, and free cash flow.

Tesla (TSLA) fell more than 5% in pre-market trading. The company's third-quarter revenue was $28.05 billion, essentially flat year-over-year; net profit dropped to $787 million, down 43% year-over-year, with adjusted earnings per share of $0.48. Tesla lowered its 2026 capital expenditure forecast from over $25 billion to around $20 billion, raising market concerns over the pace of its AI, Robotaxi, and humanoid robot projects.

IBM (IBM) fell about 5% in pre-market trading. The company's third-quarter revenue grew 5% year-over-year to $17.1 billion, and adjusted earnings per share were $2.95, with software revenue up 8%. IBM also raised its full-year free cash flow guidance to a year-over-year increase of more than $1 billion, but the strong financial results failed to prevent the stock from pulling back in pre-market trading.

Lam Research (LRCX) fell about 7.3% in pre-market trading. The company's quarterly revenue reached a record $8.22 billion, up 22% quarter-over-quarter, with adjusted earnings per share of $2.20. The company expects next-quarter revenue to be approximately $8.6 billion, plus or minus $400 million, but against the backdrop of a sharp prior stock rally and elevated market expectations, investors opted to take profits.

Security risks in the Strait of Hormuz and at Saudi energy facilities have escalated. Iranian state television reported that seven oil tankers were attacked or damaged by mines in the Strait of Hormuz, a claim the Associated Press stated could not be independently verified. Meanwhile, the U.S. State Department ordered the evacuation of certain diplomatic personnel and families of government employees from Saudi Arabia; the Saudi Ministry of Energy reported that debris from intercepted drones killed two people and injured two others at an oil field operated by Saudi Aramco.

Meta (META) will establish non-voting Class C common stock. The company's board of directors approved the creation of publicly traded Class C shares, expected to take effect in January 2027, with plans to distribute one Class C share for each Class A or Class B share. The new shares can be used for financing, employee compensation, and potential acquisitions, while existing shareholders' voting rights will remain unchanged.

OpenAI models will launch on Alphabet's Google Cloud (GOOGL). OpenAI and Google Cloud announced that OpenAI's frontier models and Codex coding agents will be available on Google Cloud Model Garden and Marketplace in the coming weeks, allowing enterprise customers to access the products through their existing Google Cloud procurement systems.

At 8:30 AM ET on October 22, the U.S. will release initial jobless claims, with market expectations at 200,000 and the previous reading at 199,000.

At 10:00 AM ET on October 22, the U.S. will release the September Leading Economic Index.

At 11:00 AM ET on October 22, the U.S. will release the Kansas City Fed Manufacturing Index.

After the market close on October 22 ET, Western Digital (WDC), Newmont (NEM), and Deckers Outdoor (DECK) will report quarterly earnings.

This content was translated using AI and reviewed for clarity. It is for informational purposes only.