【US Pre-Market】Intel Plunges 25%, Amazon Drops About 7%, Memory Stocks Slide, SanDisk Falls Over 8%, Gold Drops Below $4,000

Intel fell over 25% in pre-market trading as fourth-quarter guidance missed expectations

Intel's third-quarter revenue grew 21% year-over-year to $16.5 billion. GAAP earnings per share came in at $0.60, while non-GAAP earnings per share reached $0.52, beating market expectations of $0.40.

The company expects fourth-quarter revenue to be between $15 billion and $16 billion, with non-GAAP earnings per share of $0.25, both below market expectations. Intel stated that the slowdown in the PC market could persist into the first half of 2027, though demand for Xeon server CPUs remains strong. The company will continue to invest in expanding capacity and increasing working capital to enhance supply capabilities.

Despite better-than-expected third-quarter results, weak fourth-quarter guidance and cash flow pressures in 2026 heightened market concerns over the company's capacity expansion costs and manufacturing investments.

Impacted by Intel's warning of PC market weakness, HP (HPQ) fell over 8% in pre-market trading, Dell (DELL) dropped more than 10%, while Hewlett Packard Enterprise (HPE) and Super Micro Computer (SMCI) both fell over 5%.

Amazon fell nearly 7% in pre-market trading as capital expenditures rose, putting pressure on cash flow and its fourth-quarter outlook

Amazon's third-quarter net sales increased 12% year-over-year to $201.9 billion, while diluted earnings per share came in at $1.89, falling short of market expectations of $1.96 and down from $1.95 in the same period last year.

AWS revenue surged 39.3% year-over-year to $46 billion, with operating profit growing by approximately 56% to $17.8 billion. However, the company's free cash flow for the trailing 12 months turned to negative $42.4 billion, compared to positive $14.8 billion in the prior-year period.

Amazon projects cash capital expenditures of approximately $220 billion in 2026. CEO Andy Jassy stated that capital expenditures will increase further in 2027, with AWS revenue growth expected to exceed 40% in both 2027 and 2028.

Additionally, the company's fourth-quarter sales guidance of $240 billion to $247 billion fell short of market expectations of approximately $244.2 billion.

While AWS delivered strong growth, continuously rising capital expenditures, negative free cash flow, and soft fourth-quarter guidance have intensified market focus on the returns on AI investments.

Reddit (RDDT) fell over 20% in pre-market trading as user traffic risks sparked concerns

Reddit's third-quarter revenue increased 53% year-over-year to $895 million, while daily active unique users grew 12% year-over-year to 130.3 million.

However, CEO Steve Huffman noted that if search engine referral traffic continues to decline, fourth-quarter daily active visitors could fall by a low double-digit percentage from the current level of approximately 130 million.

These comments sparked market concerns regarding user growth and the advertising business. If traffic continues to drop, it could weigh on ad impressions and revenue growth, making the company's ability to monetize users crucial to offsetting the impact of falling traffic.

Rivian (RIVN) rose over 6% in pre-market trading after raising its full-year delivery guidance

Rivian's third-quarter revenue grew 38% year-over-year to $2.155 billion, and the company raised its full-year 2026 delivery guidance from 65,000–70,000 vehicles to 67,000–70,000 vehicles.

The adjustment primarily raised the lower bound of its delivery guidance. Going forward, the market will focus on the mass production and delivery timeline of the R2 model, alongside automotive profitability and software business performance. While the raised delivery outlook improved market expectations for full-year operating performance, actual execution in deliveries and cost control remain key.

Binance Discloses Security Incident as Bitcoin Drops to Six-Week Low

Binance disclosed a potential security incident on October 30, with an estimated $6.3 billion in assets affected. The company stated that it has frozen approximately $3 billion in related assets in cooperation with blockchain partners and is currently investigating the cause of the incident.

Preliminary investigations show that the attacker may have compromised a DevOps engineer's laptop to access internal services and initiate unauthorized withdrawals. Binance stated that there is currently no evidence showing wallet private keys were compromised.

The news triggered a sell-off across the cryptocurrency market. Bitcoin dropped to as low as $77,646, hitting a six-week low, while Ethereum fell to $2,238.76, a two-month low.

Regarding the losses and funding arrangements, Binance co-founder He Yi stated that the company's annual revenue is sufficient to cover the related losses, eliminating the need to sell its SpaceX shares. The incident has renewed market concerns over the security of crypto exchanges and the risks of user asset custody.

Kioxia Reports Q2 Net Profit of 1.36 Trillion Yen, Q3 Guidance Misses Expectations

For the second quarter of fiscal year 2026 (July to September), Kioxia reported revenue of 2.48 trillion yen (approximately $15.7 billion), up 40.3% quarter-on-quarter. Operating profit reached 1.995 trillion yen, an increase of 57.1% quarter-on-quarter, while net profit was 1.36 trillion yen.

The company stated that the earnings growth was mainly driven by robust demand from generative AI data center clients, which pushed up average selling prices and bit shipments for NAND products.

Looking ahead to the third fiscal quarter, Kioxia expects operating profit of 2 trillion yen, missing market expectations of 2.35 trillion yen. The company also announced an interim dividend of 90 yen per share.

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