Microsoft (MSFT), Nvidia (NVDA), Oracle (ORCL), Meta (META), Amazon (AMZN), and Alphabet (GOOGL) all dropped through Thursday’s close after earnings showed plans to dump roughly $660 billion into AI infrastructure this year.
For reference, the entire GDP of the United Arab Emirates is smaller!
AMZN got hit the worst, dropping 7% in premarket Friday after announcing a $200 billion spending plan for 2026. Up 56% from last year and the highest of any cloud giant.
Why the panic?
Investors want receipts on payback, not vibes.
Analysts at GAM Investments said hardware stocks tied to AI will keep seeing volatility as “sentiment contagion” spreads and investors question whether these companies can make the money back from all this spending.
But NVDA CEO Jensen Huang came out swinging Friday, calling the buildout “justified, appropriate and sustainable” while NVDA jumped 7%.
Meanwhile Apple (AAPL) went the other way, up 7% this week on iPhone demand while spending less than the hyperscalers.
🥡 The Takeaway: This $1 trillion drop shows Wall Street’s getting nervous about AI spending, so watch how the next wave of Big Tech earnings reports either calm these fears or confirm the bubble might be real.
🚗 Stronger together…
But the investors ain't buying it.
Stellantis (STLA) dropped over 20% Friday morning after announcing $26 billion in charges to overhaul its business.
For context?
Ford (F) took $19.5 billion in EV pullback charges. General Motors (GM) took $7.6 billion. STLA topped both of ‘em.
CEO Antonio Filosa blamed the hit on “over-estimating the pace of the energy transition” and missteps by former leadership.
$17.3 billion to realign products with what customers want. Add in $4.8 billion for warranty costs and $2.5 billion to resize the EV supply chain.
Oh, and they canceled the dividend and expect a net loss for 2025.
When asked about splitting up the company’s 14 brands, Filosa said “it makes all of sense to stay together.”
Meanwhile, STLA’s U.S. market share went from 11.6% to 8% since the company formed in 2021.
🥡 The Takeaway: STLA took the biggest EV pullback charge in the auto industry. May 21 is the next date to watch where Filosa has to prove staying together is worth it or the split-up talk gets louder.
$STLA stock over the past week
ℹ️ What's that? A charge (also called a "writedown" or "impairment") is when a company officially admits on its books that something it spent money on is now worth less than what it paid.
💻 Software's on the chopping block...
As Wall Street dumps the whole sector.
Box (BOX) CEO Aaron Levie says this is the “most exciting moment” in the company’s 20-year history.
The stock’s down 17% so far this year.
Yeah... And that’s nothing compared to the bloodbath across the sector.
Software stocks are getting crushed harder than my hopes of making it to the gym this year.
HubSpot (HUBS) is down 39%, Figma (FIG) dropped 40%, and Shopify (SHOP) dropped 29%.
Why the panic?
Investors think AI agents will replace traditional software companies.
Anthropic just dropped new legal and finance tools for Claude Cowork, and suddenly everyone’s wondering if they still need Salesforce (CRM) or ServiceNow (NOW).
Both CRM and NOW lost about 25% of their value this year despite their CEOs saying AI makes their products better, not obsolete.
Software CEOs are calling this fear overblown, arguing companies would rather pay specialists than build everything themselves.
But the market’s already decided: infrastructure companies and AI model makers are the winners, software companies are the likely losers.
🥡 The Takeaway: This sector-wide sell-off is creating swing opportunities across multiple software names as the market figures out who survives the AI disruption.
💫 TMYK A quick pop quiz to help you learn about the market. The more you know!
A temporary stop in trading due to big moves or pending news is called a ______.
a.) dividend
b.) halt
c.) portfolio
Scroll down for the answer!
Gimme some mo' More news from 'round the market.
📉 Qualcomm gets supply-checked Qualcomm (QCOM) fell 10% after the company warned a memory crunch tied to AI data centers is squeezing smartphone supply. [Link]
💄 Tariffs smack a beauty giant Estée Lauder (EL) dropped over 20% after saying tariffs could hit full-year profits by $100M while it’s still in the middle of a big turnaround plan. [Link]
💊 Guidance gut-check Novo Nordisk (NVO) sank 18% after the company pre-released a 2026 forecast calling for sales and profit down 5% to 13% on lower U.S. Wegovy pricing. [Link]
🛒 Amazon’s $200B spend stuns Wall Street Amazon (AMZN) dropped after earnings after guiding to $200B in 2026 capex and giving weaker profit outlook for the next quarter. [Link]
🤳🏾 Let me check my palm pilot Earnings events on deck this coming week.
Tuesday 4/14: CarMax (KMX), Citigroup (C), Johnson & Johnson (JNJ), JPMorgan Chase (JPM), Wells Fargo (WFC)
Wednesday 4/15: ASML (ASML), Bank of America (BAC), Kinder Morgan (KMI), Morgan Stanley (MS), PNC Financial (PNC), Progressive (PGR)
Thursday 4/16: Abbott (ABT), Alcoa (AA), Bank of New York Mellon (BK), Charles Schwab (SCHW), Netflix (NFLX), PepsiCo (PEP), Prologis (PLD), Taiwan Semiconductor (TSM), Travelers (TRV), U.S. Bancorp (USB)
Friday 4/17: Ally Financial (ALLY), Fifth Third Bancorp (FITB), Regions Financial (RF), State Street (STT), Truist Financial (TFC)
Copyright Simply Put 6935 Aliante Pkwy Ste 104-236, North Las Vegas, NV 89084
This newsletter is by no means a solicitation to buy or sell any of the above-mentioned securities. It is for educational and entertainment purposes only. Any views expressed here do not necessarily reflect the views of any affiliate. Expressions of opinion are as of this date, are solely that of the writer and are subject to change without notice. All investments involve risk including the loss of principal and past performance does not guarantee future results. Always do your own research and due diligence. This newsletter may contain affiliate links and we may receive commissions, at no cost to you, for purchases made through links in this email. The MRKTcap team often invests in the same stocks that we cover.
