Track market-moving stories before they get noisy

Reddit (NYSE:RDDT) reported third-quarter financial results Thursday after market close.

Here are the key highlights.

Reddit Q3 FinancialsReddit reported third-quarter revenue of $895.00 million, up 53% year-over-year. The revenue total beat a Street consensus estimate of $878.02 million, according to data from Benzinga Pro.

Advertising revenue was $847 million in the quarter, up 54%. Other revenue came in at $48 million for the quarter, up 35% year-over-year.

Geographically, the United States revenue was $719 million and up 50% year-over-year, while International revenue was $176 million and up 67% year-over-year.

The company reported quarterly earnings per share of $1.40, beating a Street consensus estimate of $1.36.

Reddit had daily active uniques of 130.3 million for the quarter, up 12% year-over-year. Weekly active uniques were 515.2 million for the quarter, up 16% year-over-year.

"Our business is growing because the Reddit experience captures the human experience in a way that no other platform can replicate," Reddit CEO Steve Huffman said. "Surpassing $3B of revenue over the last 12 months shows Reddit’s strength as a destination and the differentiated value of our platform."

Read Next

What’s Next for RedditReddit stock is falling on guidance from the company.

The company is forecasting fourth-quarter revenue to be in a range of $1.00 billion to $1.03 billion. This represents year-over-year revenue growth of 37.8% to 42.0%, lower than the third quarter.

The guidance also comes in lower than a Street estimate of $1.046 billion for the quarter.

Reddit is guiding for fourth-quarter adjusted EBITDA in a range of $480 million to $510 million.

Reddit Stock Price ActionReddit stock is down 16.8% to $107.78 in after-hours Thursday, which would mark a new 52-week low. The stock has traded in a 52-week range of $119.27 to $263.50.

Read Next

Photo: JarTee / Shutterstock

Market News and Data brought to you by Benzinga APIs

© 2026 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

Reddit Inc. (RDDT - Free Report) came out with quarterly earnings of $1.4 per share, beating the Zacks Consensus Estimate of $1.31 per share. This compares to earnings of $0.8 per share a year ago. These figures are adjusted for non-recurring items.

This quarterly report represents an earnings surprise of +6.87%. A quarter ago, it was expected that this company would post earnings of $0.99 per share when it actually produced earnings of $1.25, delivering a surprise of +26.26%.

Over the last four quarters, the company has surpassed consensus EPS estimates four times.

Reddit Inc., which belongs to the Zacks Internet - Software industry, posted revenues of $894.96 million for the quarter ended September 2026, surpassing the Zacks Consensus Estimate by 0.96%. This compares to year-ago revenues of $584.91 million. The company has topped consensus revenue estimates four times over the last four quarters.

The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.

Reddit Inc. shares have lost about 41.4% since the beginning of the year versus the S&P 500's gain of 13.1%.

What's Next for Reddit Inc.?While Reddit Inc. has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?

There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.

Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.

Ahead of this earnings release, the estimate revisions trend for Reddit Inc. was favorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #1 (Strong Buy) for the stock. So, the shares are expected to outperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $1.74 on $1.05 billion in revenues for the coming quarter and $5.28 on $3.4 billion in revenues for the current fiscal year.

Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Internet - Software is currently in the top 36% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.

Another stock from the same industry, Grab Holdings Limited (GRAB - Free Report) , has yet to report results for the quarter ended September 2026. The results are expected to be released on November 2.

This company is expected to post quarterly earnings of $0.02 per share in its upcoming report, which represents a year-over-year change of +100%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.

Grab Holdings Limited's revenues are expected to be $1.07 billion, up 22.5% from the year-ago quarter.

Gold price (XAU/USD) falls to around $4,015 during the early Asian session on Friday. The precious metal loses ground as US inflation data reinforced expectations ‌of a Federal Reserve (Fed) interest rate hike later this year.

AIB Data Centers NYSEAMERICAN: AIB said it has expanded its contracted power portfolio to 120 megawatts and signed its first customer lease, as the company seeks to develop facilities for artificial intelligence hosting and high-performance computing workloads.

Chief Financial Officer Jolienne Halisky described the company as a “power-first” developer, saying it will not pursue projects or land acquisitions unless power has been secured through firm contracts. The company’s strategy centers on “power, people, and pipeline,” she said, referring to secured electricity resources, its operating team and its development opportunities.

Get AIB Data Centers alerts:

Since its previous update in July, AIB said its portfolio has grown from 65 MW to 120 MW following the acquisition of another piece of land in Texas. The company has 50 MW of critical IT load under contract and has signed an initial 12-year lease with its first customer.

Nebius Lease Covers Anchor Site Halisky said the tenant is Nebius, which she described as a publicly traded global neocloud developer with a market capitalization of about $50 billion. Nebius has agreed to take the company’s full 65-MW anchor site, representing 50 MW of critical IT load, under a 12-year contract that includes two five-year renewal options.

The project will be developed through modular construction with two data halls. While AIB did not disclose the exact commercial terms of the agreement, Halisky said the contract’s revenue per megawatt over its life is above a cited market range of $1.8 million to $2.1 million per MW annually.

Halisky said the lease is significant because a contract with a tenant such as Nebius can support project financing. Securing financing is the company’s next major step, she added.

Under the lease structure, AIB will build out white space for Nebius. Halisky said this arrangement is expected to allow the company to begin generating revenue earlier in the development process than is typical for a data center project, potentially in the fourth or fifth month of the contract. The company expects the data halls to be delivered, energized and revenue-generating in the fourth quarter of 2027.

Modified Gross Lease Terms Responding to a question about the company’s modified triple-net model, Halisky said the Nebius agreement includes a 3% annual escalator. She said the company could not provide the exact rental rate because Nebius requested that information remain private.

Halisky characterized the arrangement as a modified gross lease. Power costs will be fully passed through to the tenant, while AIB will be responsible for property management, insurance and property taxes.

Development Pipeline and Leadership Additions AIB said it is targeting developments in the 40-MW to 90-MW range, a size Halisky said enables the company to move quickly on smaller projects. “We’re going to build a multi-gigawatt platform, 50 MW at a time,” she said.

The company’s identified development portfolio includes:

A secured Dallas-Fort Worth site with 55 MW of capacity. DFW2, a site under an exclusive letter of intent that AIB hopes to close within 45 days. GS01, a 90-MW property under an exclusive letter of intent with a right to purchase. MSP1 in Minnesota, also under an exclusive letter of intent and being evaluated for further development. Halisky said AIB was founded in 2021 and has operated a Bitcoin mining data center since that year. The company publicly listed in the first quarter of 2026 and signed a 15-year utility agreement for 65 MW at its anchor site in May 2026, she said.

AIB also appointed Jason Burnett as chief operating officer. Halisky said Burnett brings more than 20 years of leadership and senior operational experience, including roles at DataBank, Cologix and Hivelocity.

AI Demand and Execution Focus Halisky pointed to projected growth in AI-related data center demand, citing estimates of 82 GW of AI workloads in 2025 and 220 GW by 2030. She said AI workloads are expected to represent 70% of AI data center demand by 2030, while cumulative global data center investment through that year is projected at $1.7 trillion.

She said power availability, chips and GPU processing capacity remain constraints for the industry, with capital and debt financing becoming an additional constraint. AIB believes its valuation gap relative to peers could narrow as it demonstrates execution, including through tenant leasing and financing milestones, Halisky said.

About AIB Data Centers (NYSEAMERICAN:AIB)AIB Data Centers is engaged in the digital infrastructure business, providing data center operations and high-performance computing services. The company offers power infrastructure, hosting services, and equipment leasing to customers involved in blockchain computing, artificial intelligence, and high-performance data processing. Its operations include leasing space, power capacity, and equipment within data center facilities, as well as offering modular digital asset mining containers and related hardware and support services.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected].

Should You Invest $1,000 in AIB Data Centers Right Now?Before you consider AIB Data Centers, you'll want to hear this.

MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and AIB Data Centers wasn't on the list.

While AIB Data Centers currently has a Buy rating among analysts, top-rated analysts believe these five stocks are better buys.

View The Five Stocks Here

Nuclear energy is entering a new growth cycle as rising power demand, expanding data centers, and renewed policy support bring the sector back into focus. After strong gains in recent years, the most impactful phase of nuclear investment may still be ahead. This report highlights seven nuclear energy stocks positioned across the value chain—combining near-term revenue with long-term upside as next-generation technologies scale. Click the link below to unlock the full list.

Get This Free Report

Continue following MarketBeat

Add MarketBeat as your preferred source on Google to see our latest stories in your feed.

NEW YORK, Oct. 29, 2026 (GLOBE NEWSWIRE) --

WHY: Rosen Law Firm, a global investor rights law firm, continues to investigate potential securities claims on behalf of shareholders of Build-A-Bear Workshop, Inc. (NYSE: BBW) resulting from allegations that Build-A-Bear may have issued materially misleading business information to the investing public.

SO WHAT: If you purchased Build-A-Bear securities you may be entitled to compensation without payment of any out of pocket fees or costs through a contingency fee arrangement. The Rosen Law Firm is preparing a class action seeking recovery of investor losses.

WHAT TO DO NEXT: To join the prospective class action, go to https://rosenlegal.com/cases/buildabear-workshop-inc-bbw/join or call Phillip Kim, Esq. toll-free at 866-767-3653 or email [email protected] for information on the class action.

WHAT IS THIS ABOUT: Rosen Law Firm is investigating potential civil securities claims.

WHY ROSEN LAW: We encourage investors to select qualified counsel with a track record of success in leadership roles. Often, firms issuing notices do not have comparable experience, resources, or any meaningful peer recognition. Many of these firms do not actually litigate securities class actions. Be wise in selecting counsel. The Rosen Law Firm represents investors throughout the globe, concentrating its practice in securities class actions and shareholder derivative litigation. Rosen Law Firm has achieved the largest ever securities class action settlement against a Chinese Company. Rosen Law Firm was Ranked No. 1 by ISS Securities Class Action Services for number of securities class action settlements in 2017. The firm has been ranked in the top 4 each year since 2013 and has recovered billions of dollars for investors. In 2019 alone the firm secured over $438 million for investors. In 2020, founding partner Laurence Rosen was named by law360 as a Titan of Plaintiffs’ Bar. Many of the firm’s attorneys have been recognized by Lawdragon and Super Lawyers.

Follow us for updates on LinkedIn: https://www.linkedin.com/company/the-rosen-law-firm, on Twitter: https://twitter.com/rosen_firm or on Facebook: https://www.facebook.com/rosenlawfirm/.

Attorney Advertising. Prior results do not guarantee a similar outcome.

-------------------------------

Contact Information:

        Laurence Rosen, Esq.
        Phillip Kim, Esq.
        The Rosen Law Firm, P.A.
        275 Madison Avenue, 40th Floor
        New York, NY 10016
        Tel: (212) 686-1060
        Toll Free: (866) 767-3653
        Fax: (212) 202-3827
        [email protected]
        www.rosenlegal.com

Cathie Wood's ARK Invest and Tim Draper invest in the mission of Capital Factory; national partnership extends Capital Factory’s network for deep tech founders from Silicon Valley, through Texas to St. Petersburg, Florida.

AUSTIN, Texas--(BUSINESS WIRE)--Capital Factory today announced partnerships with ARK Invest and Tim Draper to scale its national network for founders building deep technology. ARK and Draper joined Capital Factory’s All Access 2027 as investors and strategic partners bringing different capabilities and regional networks to founders.

“Our research led us to Apptronik, where we saw firsthand the role Capital Factory was playing in supporting its growth. This partnership brings Capital Factory’s network, including its government and defense relationships, to St. Petersburg.” Cathie Wood

Share ARK brings industry leading research in robotics, biotechnology, energy and other critical technology sectors. Tim Draper has built over thirty Draper venture funds as part of a family who pioneered venture capital in Silicon Valley. Capital Factory brings an unrivaled portfolio of more than 1000 early stage companies along with a national network of dual-use investors, corporate partners and grant funders.

A History of Funding Big Ideas Together

Capital Factory, ARK Invest and Tim Draper have repeatedly backed the same companies and share a common view on innovation driven growth. Austin-based humanoid robotics company, Apptronik, entered Capital Factory's portfolio in 2017, and the ARK Venture Fund holds a position in the company today. Colossal Biosciences, the Dallas-based genetic engineering company, also joined Capital Factory's portfolio in 2021 and also received investment from Tim Draper at an early stage. All Access 2027 is intended to unify that activity from the outset, giving deep tech startups access to all three networks. Capital Factory’s venture team and ARK’s platform researchers will also share deal flow and diligence, so the right companies surface to both teams earlier.

Connecting St. Pete and Silicon Valley to Texas

Founded and led by Cathie Wood, ARK Invest moved the firm's headquarters from New York to St. Petersburg, Florida in 2021. spARK Labs by ARK Invest is St. Pete’s early stage innovation hub operating The ARK Innovation Center, a 45,000 sq. ft. business incubator in St. Pete’s Innovation District, and will serve as a key collaborator to Capital Factory. A member of Capital Factory’s venture team will be based at the Innovation Center to scout advanced technologies across Florida. spARK Labs portfolio companies will also benefit from the partnership through connection to activity in Austin. Capital Factory said the Tampa Bay region is a natural extension of its dual-use technology work. MacDill Air Force Base, located twenty-five minutes from the ARK Innovation Center, is the only United States installation hosting two four-star combatant commands: U.S. Central Command and U.S. Special Operations Command.

“Innovation is the key to long-term growth. We believe the convergence of artificial intelligence, robotics, energy storage, blockchain technology and multiomics is creating opportunities unlike anything we have seen in more than a century. Many of the companies pioneering these technologies are still early stage, which is why our research spans both public and private markets. Our research led us to Apptronik, where we saw firsthand the role Capital Factory was playing in supporting its growth. This partnership brings our researchers closer to the entrepreneurs building the future and brings Capital Factory’s network, including its government and defense relationships, to St. Petersburg alongside spARK Labs,” said Cathie Wood, Founder, Chief Executive Officer and Chief Investment Officer of ARK Invest.

Tim Draper

Tim Draper is the founder and managing partner of Draper Associates, the San Mateo seed-stage firm he founded in 1985, and a third-generation venture capitalist. His investments include Tesla, SpaceX, Skype, Baidu, Coinbase, Hotmail and Robinhood. He and Capital Factory are both investors in Colossal Biosciences. His work with Capital Factory predates All Access 2027. Capital Factory hosted Meet the Drapers in March 2026 during SXSW, putting portfolio companies including Dexmat and Glid in front of the Draper family, and Capital Factory founders like Nautilus take part in the annual Draper Summit. With this investment into All Access 2027, Draper formalizes the relationship, sending promising founders to Capital Factory and gives All Access companies a direct line to Silicon Valley.

"Entrepreneurs are the heroes of the modern world, and the best ones show up before their vision is fully formed. I have spent four decades backing them from Silicon Valley, and the last fifteen years watching Austin become a place where a founder with a world-changing idea walks in the door and walks out with capital, customers and talent. Colossal is what that looks like when it works. All Access is where I will meet the next hundred," said Tim Draper, founder and managing partner of Draper Associates.

All Access Makes Introductions that Matter

Since 2017, Capital Factory has partnered with approximately 100 high-potential startups annually through All Access, supporting companies from Seed through Series B. Founders gain access to experienced operators and industry experts, a network of more than 1,000 venture capital funds and angel investors, and strategic introductions to enterprise customers, government agencies, and key decision-makers. All Access 2027 will prioritize ambitious deep tech companies advancing autonomy, robotics, space, energy, advanced manufacturing, biotechnology, and novel innovation critical to America's economic competitiveness and national security.

All Access portfolio companies from previous years include Apptronik, Saronic, ICON, Paradromics, Colossal Biosciences and Firehawk Aerospace.

"ARK found Apptronik. Tim Draper found Colossal. Capital Factory helped connect both companies to new investors and there are several more great companies we share. When we keep landing on the same founders, it makes sense to work together from day one. ARK sees platform shifts before the market prices them, Tim has backed category-defining founders for four decades, and Capital Factory has spent fifteen years connecting founders with investors and the institutions that buy from them." said Bryan Chambers, President and Co-Founder of Capital Factory.

Founders can learn more about All Access 2027 by reaching out at [email protected].

About Capital Factory

Capital Factory, headquartered in Austin, Texas, invests in startups advancing civilization. From early stage through growth, Capital Factory backs ambitious founders building category-defining companies across defense, space, energy, advanced manufacturing, robotics, and life sciences. With deep ties to the government and the national security sector, Capital Factory provides the capital, connections, and institutional resources to build companies that strengthen American industry.

Apply to open positions on Capital Factory’s venture team in St. Petersburg, Austin and Washington, D.C. at apply.workable.com/capital-factory/.

About ARK Invest

ARK Invest is a global investment management firm headquartered in St. Petersburg, Florida. Founded by Cathie Wood in 2014, ARK focuses solely on disruptive innovation, aiming to identify large-scale investment opportunities across artificial intelligence, robotics, energy storage, multiomic sequencing, blockchain technology, and beyond.

For more information regarding ARK’s research and advisor services, please visit ark-invest.com. For more information about the ARK Venture Fund, visit ark-funds.com/funds/arkvx

About spARK Labs by ARK Invest

Located in the ARK Innovation Center in St. Petersburg, FL, spARK Labs by ARK Invest strives to be Florida's leading hub for disruptive innovation, where visionary founders and startups gain access to the Capital, Customers, and Community they need to build transformative companies. Powered by ARK Invest's world-class research and expertise across Artificial Intelligence, Robotics, Energy Storage, Blockchain & Digital Assets, and Multiomics, spARK Labs brings together entrepreneurs, investors, corporations, universities, and public-sector partners to accelerate breakthrough technologies. Supported by the City of St. Petersburg and Pinellas County, and in collaboration with local organizations, businesses, and civic leaders, spARK Labs leverages the unique strengths of the Tampa Bay region to help build companies that shape the future and drive lasting economic impact. Learn more by visiting sp-ark-labs.com.

About Draper Associates

Draper Associates is an early-stage venture capital firm, funding the future first. Founded in 1985 by Tim Draper, we’ve been the first believers in companies like Tesla, SpaceX, Robinhood, Baidu, Twitch, Cruise, and Coinbase—long before they became household names. We invest from pre-seed to Series A and remain industry-agnostic and opportunistic, while gravitating toward transformative ideas in AI, robotics, biotech, Biocures, robotics, defense, crypto, space, and deep tech. We're especially excited by the wild, the weird, and the unconventional—world-changing ideas that seem impossible today but will be inevitable tomorrow. The firm’s partners are Tim Draper and Andy Tang. Our mission is simple: Fund the people crazy enough to change the world.

More News From Capital Factory

Representations of cryptocurrencies are seen in front of displayed Binance logo in this illustration taken November 10, 2022. REUTERS/Dado Ruvic/Illustration/File Photo Purchase Licensing Rights, opens new tab

CompaniesOct 29 (Reuters) - Circle (CRCL.N), opens new tab and Tether on Thursday froze over $2.38 billion in stablecoin currency after Binance said it ​was actively investigating a potential security ‌issue.

Binance, the world's largest cryptocurrency exchange, said in a post on X its teams were reviewing all ​relevant information with urgency and added ​that user funds were safe.

Sign up here.

Crypto firm Ripple ⁠had frozen roughly $200 million, Binance co-founder ​Yi He said on X.

Binance co-founder Changpeng Zhao, ​who no longer manages the company, wrote on X that the incident "looked like a hack".

Tether, which issues ​the world's largest stablecoin, said it froze ​nearly $1.57 billion related to the hack, with Circle freezing over $800 ‌million.

Circle, ⁠another stablecoin issuer, is closely tracking reports of a potential exploit involving Binance, its co-founder and CEO Jeremy Allaire wrote in ​a post on ​X, ⁠adding that it will continue supporting the investigation.

Binance has over 335 ​million registered global users, according to ​its ⁠website. Crypto exchanges such as Binance are platforms where people buy, sell or trade digital ⁠assets.

Binance.US, ​a separate cryptocurrency exchange, said ​it was not affected by the security incident.

Reporting by ​Vallari Srivastava in Bengaluru; Editing by Maju Samuel

Our Standards: The Thomson Reuters Trust Principles., opens new tab

Ambev S.A. (ABEV) Q3 2026 Earnings Call October 29, 2026 11:30 AM EDT

Company Participants

Carlos Eduardo Lisboa - CEO & Member of Board of Executive Officers
Guilherme Fleury de Figueiredo Parolari - CFO, Investor Relations Officer & Member of the Executive Board

Conference Call Participants

Henrique Brustolin - Banco Bradesco BBI S.A., Research Division
Thiago Duarte - Banco BTG Pactual S.A., Research Division
Lucas Ferreira - JPMorgan Chase & Co, Research Division
Benjamin Theurer - Barclays Bank PLC, Research Division
Felipe Ucros Nunez - Scotiabank Global Banking and Markets, Research Division
Gustavo Troyano - Itaú Corretora de Valores S.A., Research Division
Guilherme Palhares - Santander Investment Securities Inc., Research Division

Presentation

Operator

Good afternoon, and thank you for waiting. We would like to welcome everyone to Ambev's 2026 Third Quarter Conference Call. Today with us, we have Mr. Carlos Lisboa, Ambev's CEO; and Mr. Guilherme Fleury, CFO and Investor Relations Officer.

As a reminder, this conference presentation is available for download on our website, ri.ambev.com.br, as well as through the webcast link. We would like to inform you that this event is being recorded. [Operator Instructions]

Before proceeding, let me mention that forward-looking statements are being made under the safe harbor of the Securities Litigation Reform Act of 1996. Forward-looking statements are based on the beliefs and assumptions of Ambev's management and on information currently available to the company. They involve risks, uncertainties and assumptions because they relate to the future events and therefore, depend on circumstances that may or may not occur in the future. Investors should understand the general economic conditions, industrial conditions, and other operating factors could also affect the future results of Ambev and could cause results to differ materially from those expressed in such forward-looking statements.

I would also like to remind everyone that, as usual, the percentage changes that will

SanDisk Corp. (NASDAQ:SNDK) posted its first-quarter fiscal 2027 results after Thursday's closing bell, beating analyst estimates on the top and bottom lines.  Here's a look at the details inside the report.

Sandisk (SNDK -5.32%) grew fiscal first-quarter 2027 revenue 23% from the prior quarter to about $11.0 billion, and data center sales supplied about 88% of the gain. Shares were up nearly 3% in after-hours trading, shortly after reporting. Revenue is nearly five times its year-ago level, and higher prices and product mix are doing much of the work. Guidance calls for growth to slow to about 11% to 14% next quarter, with a steady gross margin near 85%.

Key NumbersMetricsQ1 2027Q1 2026% ChangeRevenue$11 billion$2.3 billion378%Data Center Revenue$4.8 billion$269 million1,685%Gross Margin (GAAP)85%29.8%55.2 percentage pointsDiluted Earnings per share (GAAP)$52.60$0.756,913%Table by author. Source: Company earnings release. Note: The earnings per share is on a pre-split basis. GAAP stands for generally accepted accounting principles.

What It MeansCost of revenue was nearly flat year over year, so shipments alone can't explain the jump; revenue per unit must have risen. The release gives no price or shipment data, so it can't show how much came from price and how much from mix. Memory is a commodity, so price gains drop almost straight to profit and can also reverse.

SNDK Sandisk$1,330.05-$74.72 (-5.32%)

NASDAQ · As of 4:00 PM ET 10/29/26

Data center is the real shift. It's now about 44% of revenue, and consumer sales fell, so the mix is tilting toward AI infrastructure. That is the lasting change; pricing is the cyclical part.

Cash lagged profit. Receivables grew about 40% in one quarter, well ahead of revenue, and adjusted free cash flow rose less than revenue. That may be due to shipment timing, but the release doesn't say so.

What to Watch NextMonitor whether gross margin remains near 85% as revenue approaches the guided $12.2 billion to $12.6 billion range. A slip would suggest prices are softening. Also track whether adjusted free cash flow keeps pace with revenue, since Sandisk spent $5.0 billion on buybacks this quarter.

Sharice Wells has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

Sandisk Corporation (SNDK - Free Report) came out with quarterly earnings of $49.51 per share, beating the Zacks Consensus Estimate of $47 per share. This compares to earnings of $1.22 per share a year ago. These figures are adjusted for non-recurring items.

This quarterly report represents an earnings surprise of +5.34%. A quarter ago, it was expected that this company would post earnings of $34.24 per share when it actually produced earnings of $39.25, delivering a surprise of +14.63%.

Over the last four quarters, the company has surpassed consensus EPS estimates four times.

Sandisk Corporation, which belongs to the Zacks Computer- Storage Devices industry, posted revenues of $11.03 billion for the quarter ended September 2026, surpassing the Zacks Consensus Estimate by 3.24%. This compares to year-ago revenues of $2.31 billion. The company has topped consensus revenue estimates four times over the last four quarters.

The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.

Sandisk Corporation shares have added about 491.8% since the beginning of the year versus the S&P 500's gain of 13.1%.

What's Next for Sandisk Corporation?While Sandisk Corporation has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?

There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.

Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.

Ahead of this earnings release, the estimate revisions trend for Sandisk Corporation was favorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #1 (Strong Buy) for the stock. So, the shares are expected to outperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $52.16 on $12.04 billion in revenues for the coming quarter and $215.04 on $49.53 billion in revenues for the current fiscal year.

Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Computer- Storage Devices is currently in the top 3% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.

One other stock from the same industry, Quantum Corp. (QMCO - Free Report) , is yet to report results for the quarter ended September 2026. The results are expected to be released on November 9.

This computer storage device maker is expected to post quarterly earnings of $0.12 per share in its upcoming report, which represents a year-over-year change of +122.2%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.

Quantum Corp.'s revenues are expected to be $82 million, up 30.7% from the year-ago quarter.

Modine (MOD - Free Report) closed the most recent trading day at $138.79, moving -3.31% from the previous trading session. The stock fell short of the S&P 500, which registered a loss of 0.31% for the day. On the other hand, the Dow registered a loss of 0.25%, and the technology-centric Nasdaq decreased by 1.38%.

Prior to today's trading, shares of the heating and cooling products maker had lost 23.32% lagged the Auto-Tires-Trucks sector's gain of 7.66% and the S&P 500's gain of 0.87%.

The investment community will be closely monitoring the performance of Modine in its forthcoming earnings report. The company is scheduled to release its earnings on November 3, 2026. On that day, Modine is projected to report earnings of $1.47 per share, which would represent year-over-year growth of 38.68%. Simultaneously, our latest consensus estimate expects the revenue to be $964.62 million, showing a 30.55% escalation compared to the year-ago quarter.

MOD's full-year Zacks Consensus Estimates are calling for earnings of $7.02 per share and revenue of $3.51 billion. These results would represent year-over-year changes of +39.84% and +10.22%, respectively.

Investors should also pay attention to any latest changes in analyst estimates for Modine. These revisions help to show the ever-changing nature of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.

Based on our research, we believe these estimate revisions are directly related to near-term stock moves. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.

The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 8.22% lower. Modine is currently sporting a Zacks Rank of #5 (Strong Sell).

In terms of valuation, Modine is presently being traded at a Forward P/E ratio of 20.45. This indicates a premium in contrast to its industry's Forward P/E of 12.2.

It's also important to note that MOD currently trades at a PEG ratio of 0.51. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Automotive - Original Equipment industry currently had an average PEG ratio of 0.81 as of yesterday's close.

The Automotive - Original Equipment industry is part of the Auto-Tires-Trucks sector. This industry currently has a Zacks Industry Rank of 208, which puts it in the bottom 16% of all 250+ industries.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.

Blue Bird (BLBD - Free Report) ended the recent trading session at $56.35, demonstrating a -1.43% change from the preceding day's closing price. This change lagged the S&P 500's daily loss of 0.31%. Meanwhile, the Dow lost 0.25%, and the Nasdaq, a tech-heavy index, lost 1.38%.

Heading into today, shares of the school bus maker had gained 3.01% over the past month, lagging the Auto-Tires-Trucks sector's gain of 7.66% and outpacing the S&P 500's gain of 0.87%.

Market participants will be closely following the financial results of Blue Bird in its upcoming release. In that report, analysts expect Blue Bird to post earnings of $1.48 per share. This would mark year-over-year growth of 12.12%. Meanwhile, the latest consensus estimate predicts the revenue to be $548.63 million, indicating a 34.02% increase compared to the same quarter of the previous year.

For the annual period, the Zacks Consensus Estimates anticipate earnings of $4.89 per share and a revenue of $1.75 billion, signifying shifts of +11.64% and +18.34%, respectively, from the last year.

Investors should also pay attention to any latest changes in analyst estimates for Blue Bird. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As such, positive estimate revisions reflect analyst optimism about the business and profitability.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.

The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 9.92% lower. As of now, Blue Bird holds a Zacks Rank of #5 (Strong Sell).

Looking at valuation, Blue Bird is presently trading at a Forward P/E ratio of 13.01. Its industry sports an average Forward P/E of 16.59, so one might conclude that Blue Bird is trading at a discount comparatively.

It's also important to note that BLBD currently trades at a PEG ratio of 0.79. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Automotive - Domestic industry currently had an average PEG ratio of 1.19 as of yesterday's close.

The Automotive - Domestic industry is part of the Auto-Tires-Trucks sector. With its current Zacks Industry Rank of 205, this industry ranks in the bottom 17% of all industries, numbering over 250.

The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.

The Pound Sterling rises by over 0.32% against the Japanese Yen as the pair clears the 50-day Simple Moving Average (SMA) of 210.77, putting in play a chance of testing the 211.00 psychological figure.

Coca-Cola just posted its sixth straight earnings beat and Jim Cramer is pounding the table, but a 35% rally changes the math for retirees counting on that dividend yield to do real work.

Jim Cramer backed Coca-Cola (NYSE:KO | KO Price Prediction) on Wednesday night’s Mad Money. In the lightning round, a caller asked him to choose between Broadcom (NASDAQ:AVGO) and Coca-Cola. Cramer answered: “Broadcom has been one of the greatest performers of all time, but so is Coca-Cola. I wouldn’t shoot Broadcom, and I would buy Coca-Cola.”

The call came one day after a strong earnings report. Coca-Cola shares have also risen 34.76% year to date, so retirees face a real question. Does the dividend still justify buying at $92.41?

A Raised Outlook Backs Up Cramer’s Call Coca-Cola reported third-quarter results on October 27, 2026. Adjusted EPS came in at $0.91, above the $0.88 estimate. That made it the company’s 6th consecutive EPS beat. Revenue reached $13.38 billion, ahead of the $12.93 billion estimate and up 7.4% year over year. Global unit case volume rose 5%, Coca-Cola Zero Sugar grew 16%, and comparable operating margin expanded to 32.9% from 31.9%.

Management also raised full-year guidance. Comparable EPS growth is now at least 11% (prior 9-10%), and free cash flow is expected to reach at least $13.0 billion (prior ~$12.4 billion), according to the earnings release filed with the SEC. CEO Henrique Braun said, “Our results this quarter demonstrate our system’s sustained momentum, giving us confidence in our updated full-year guidance.”

Dividend Coverage Leaves Room to Spare In the first three quarters of 2026, Coca-Cola paid $2.281 billion, $2.281 billion and $2.28 billion in dividends. CFO John Murphy said on the earnings call that “Year-to-date free cash flow was $11.4 billion, an increase versus the prior year.” That means dividends used roughly 60% of free cash flow, leaving room for buybacks and debt management. Net debt leverage is at 1.3 times EBITDA, below the company’s 2 to 2.5 times target range.

Verifying the Dividend King Streak Coca-Cola said the $8.8 billion it paid in 2025 marked its 63rd consecutive year of dividend increases. The payment history matches that claim. The quarterly payout rose from $0.42 in 2021 to $0.44, $0.46, $0.485, and $0.51, then to $0.53 with the declaration on February 19, 2026, a raise of about 3.9%. We covered that milestone in our look at Coca-Cola’s 64th straight raise. The next $0.53 payment goes out December 15 to holders of record on December 1.

Valuation Is the Price of Admission The annualized forward dividend of $2.12 works out to a yield of about 2.29%. The stock trades at roughly 30 times trailing earnings and about 75 times free cash flow. Guidance calls for at least 11% comparable EPS growth over the $3 earned in 2025, which puts the forward multiple near 28. Shares are up 35.23% over the past year and 89.79% over five years. Much of the good news is already reflected in the price, so new buyers start with a lower yield than investors who bought a year ago.

One Risk Every Retiree Should Track The biggest swing factor is Coca-Cola’s tax dispute with the IRS. Murphy said the company is “continuing to judiciously manage our balance sheet as we await a court decision related to our ongoing dispute with the IRS.” A negative ruling could draw on cash that would otherwise go to buybacks or larger raises. Management also expects re-franchising Coca-Cola Beverages Africa to create an eight-point headwind to comparable net revenues and a two-point headwind to comparable earnings per share in 2027. In addition, the fourth quarter has six fewer days than a year ago.

Verdict: What Income Investors Need to Know About Cramer’s Call For retirees who value reliability, the data lines up with several of Cramer’s points. Dividends take up about 60% of free cash flow, guidance just went up, and the payout has grown every year for more than six decades. The cost is a starting yield near 2.3% and a premium multiple so that future returns will depend mostly on earnings growth. Watch two things: the IRS court decision and the next dividend declaration, which Coca-Cola has announced in February each of the past four years.

Contact [email protected] for any questions or corrections.

Listen to the audio version of this article (generated by AI).

Alphabet fails Wall Street’s new AI test… why Microsoft held up… the “peak AI spend” question… hot inflation, hotter GDP… Eric Fry on Brazil’s shock election
In yesterday’s Digest, we said last night’s earnings from Microsoft Corp. (MSFT) and Alphabet Inc. (GOOGL) would show us how hard the hyperscalers are still pressing the AI “gas pedal.”

The answer: very hard.

But Wall Street is now grading them on a new question – can they afford it? And judging by this morning’s trading, Alphabet failed badly.

As I write on Thursday, Alphabet is down about 12%, on pace for its worst day since March 2020. Microsoft opened higher before slipping about 1% as the Nasdaq dropped 1.5%. That’s hardly a victory lap. But an 11-point gap between the two tells you how differently Wall Street graded them.

To dig into the different reactions, let’s start with Microsoft…

Revenue rose 19% to $92.3 billion, and adjusted earnings of $4.89 per share beat estimates. Azure, Microsoft’s cloud platform, grew 48%, and management guided for 49% to 50% growth next quarter. Meanwhile, Microsoft’s contracted backlog of future business jumped 73% to $677 billion.

Most importantly, it did all this while still generating cash. Here’s CNBC:

The software giant has been rapidly building out data center infrastructure to meet artificial intelligence demand, while also maintaining positive free cash flow unlike its fellow hyperscalers.

Free cash flow – the cash left over after a company pays for its operations and investments – came in at $18.6 billion, and management expects it to stay positive for the full fiscal year.

Alphabet’s story is more complicated
The AI side is booming. Google Cloud revenue soared 103% to $30.7 billion, and the Gemini app just reached 1 billion users, making it the fastest-growing product in Google’s history.

The problem is what AI is doing to Google’s core business…

Search revenue came in at $63.4 billion, missing estimates. Google said its fast-growing AI Mode search earns less per query than traditional search ads. CEO Sundar Pichai framed that as a deliberate trade-off:

Just like our shift to mobile over a decade ago, we are focused on building the best Search user experience, followed by monetization.

In other words, Google is prioritizing winning users with AI first and figuring out how to profit from them later. Wall Street doesn’t want to wait.

Then there’s the bill…

Alphabet’s free cash flow swung to negative $9.1 billion. That comes one week after Meta Platforms Inc. (META) reported negative cash flow for the first time since 2012. Alphabet has also paused stock buybacks and is now selling new shares and bonds to help fund the build-out.

How did last night’s results influence fears of “peak AI spend”?
Both earnings reports included a detail that could have kneecapped the AI infrastructure trade: both companies spent less on capex than Wall Street expected last quarter.

However, both management teams quickly put fears of “peak AI spend” to rest.

Microsoft’s spending last quarter came in about $5 billion below its own forecast of “over $50 billion.” But management says that’s a matter of timing, not a pullback.

It expects more than $50 billion again this quarter, about $170 billion for the fiscal year, and faster spending in the second half as chip deliveries and data center capacity catch up.

As for Alphabet, it held its 2026 guidance at $195 billion to $205 billion – which implies a big fourth-quarter jump – and said it expects capex to increase significantly in 2027.

In fact, Alphabet said demand is so strong that it has started renting third-party computing capacity because it can’t build fast enough.

What does this mean for the wider AI trade?
Last night didn’t call AI demand into question. Nor did it signal a spending slowdown. Both companies are capacity-constrained and still pressing the gas.

But Wall Street is questioning how the hyperscalers will pay for it – and whether AI cannibalizes the businesses that fund it. Microsoft is paying from its profits. Alphabet is now leaning on stock and bond sales as AI nibbles at its search ads.

For the companies supplying the build-out – on the receiving end of all these hyperscaler dollars – last night’s spending outlook is good news. But as the response to Meta’s earnings last week showed, infrastructure stocks can still sell off when investors start to doubt whether that spending can last. We’re seeing a version of that this morning, with many chip stocks lower alongside Alphabet.

Our next test comes tonight, when Amazon.com Inc. (AMZN) reports after the close. We’ll report back.

The other big news today – hot prices, and an even hotter economy
In yesterday’s Digest, we noted that this morning’s PCE inflation report could shift expectations for the Fed’s next move. Here’s what we got…

The personal consumption expenditures (PCE) price index – the Fed’s preferred inflation gauge – rose 0.5% in September, its biggest monthly jump since March. That put annual inflation at 3.6%. The biggest culprit was energy, with gasoline and other energy goods jumping 9.2% in the month.

Core PCE, which strips out food and energy, rose 0.3% for the month and 3.1% for the year, up from 3.0% in August.

While hot, at least the numbers were roughly in line with forecasts.

Speaking of hot, third-quarter GDP grew at a 3.4% annualized pace, beating the 3.1% estimate and marking the fastest growth in a year.

And what accounts for the acceleration? You guessed it – AI. Business investment soared 19.4%, led by a 20.9% surge in equipment spending – much of it tied to the AI build-out.

That’s the same hyperscaler spending we just covered. And it ties back to yesterday’s Digest, where we looked at how AI is adding to inflation now while its productivity payoff comes later. This morning’s data showed both sides of that coin: the build-out is powering growth, but Main Street is getting the bill first.

Real disposable income – what households have left after taxes and inflation – fell for the first time since April. And the savings rate dropped to 3.8%, its lowest level since the end of 2022.

Here’s Bloomberg Economics:

September’s personal income and outlays report paints a troubling picture of the US consumer: Inflation came in hotter, while income growth failed to keep pace.

Squeezed by higher prices, consumers held real spending flat even as the saving rate declined.

As for the Fed, strong growth plus inflation stuck well above its 2% target makes it hard for the Fed to justify holding off on another hike. On that note, the CME Group’s FedWatch Tool puts the odds of at least one quarter-point hike in December at 80%.

Finally, let’s circle back to Brazil, where a shock election earlier this week could be setting up a very profitable trade.

Brazil’s shock election: why Eric Fry is calling it an overreaction
On Monday, Brazil’s stock market suffered one of its worst days in decades. We waited to cover it until we had analysis from one of our own experts. Now we do.

First, a quick recap…

On Sunday, Brazilian voters gave President Luiz Inácio Lula da Silva a fourth term, beating Flávio Bolsonaro in the runoff roughly 51.8% to 48.2%. Bolsonaro had won the first round, and on Sunday morning, prediction markets gave him about an 80% chance of victory.

So, on Monday, investors who had bet on a Bolsonaro presidency ran for the exits.

Brazil’s Ibovespa index plunged as much as 17%, triggering the country’s first circuit-breaker halt since March 2020, before closing down 14%. Here at home, the iShares MSCI Brazil ETF (EWZ) closed down 20%.

In the fund’s 26-year history, only one day was worse: March 16, 2020.

That EWZ number could sting for some of our readers
Last Tuesday, we highlighted senior analyst Brian Hunt’s bullish call on EWZ, which was up 21% since his July note. We’ll pass along Brian’s take when it crosses our desk. In the meantime, our global macro expert Eric Fry, editor of Fry’s Investment Report, has plenty to say, since he’s recommended a handful of positions with exposure to Brazil in his newsletters.

Eric explains that the market’s worry is fiscal. Brazil’s public debt tops 82% of GDP, and investors fear Lula will keep spending high, keeping interest rates elevated.

Meanwhile, critics call Lula a “socialist” and a “populist.” But Eric believes the market’s fear rests more on those labels than on Lula’s record:

Lula’s critics apply both labels to him, and they have a point. But when it counts, Lula has also chosen pragmatism over ideology…

In October 2002, Brazilian markets collapsed on fears that Lula would win his first presidential election, and the real sank to record lows. Then Lula installed an orthodox finance team, and investors spent the next several years unwinding their “Lula discount.”

Eric also points out that the Ibovespa Index soared by nearly 1,200% in U.S. dollar terms during Lula’s first two terms, from 2003 through 2010.

But investors aren’t convinced yet. The Ibovespa slipped Tuesday and Wednesday and is down again as I write on Thursday. And with Bolsonaro refusing to concede, more volatility could be ahead.

So, where does this leave investors with Brazilian exposure?
First, what you own matters.

For example, old-line Brazilian banks Itaú Unibanco (ITUB) and Banco Bradesco (BBD) finished Monday down roughly 24% and 29%, respectively, on fears of tax increases and tighter regulation. Meanwhile, e-commerce leader MercadoLibre Inc. (MELI) fell a more modest 8%, and has since bounced almost 5% off its Monday low.

Overall, Eric sees a buying opportunity:

Markets often fixate on narratives over substance. I believe [Monday’s] selloff is an overreaction and a buying opportunity…

I expect to see a lot more of the pragmatic Lula over the next four years than the populist one.

Maintain your position [in Eric’s recommended plays].

To find out which Brazil-exposed stocks Eric holds, plus the rest of his international picks, click here to learn about joining him in Fry’s Investment Report.

Summing it all up…
The hyperscalers are still pressing hard on the AI gas pedal, but Wall Street now wants proof they can pay for the fuel. On that note, all eyes turn to Amazon after the closing bell.

Meanwhile, hot inflation keeps the Fed’s foot hovering over the brake. And in Brazil, Eric sees a selloff driven more by fear than fundamentals – which is often where the best opportunities begin.

Have a good evening,

Jeff Remsburg

(Disclosure: I own GOOGL, MSFT, AMZN)

Bragar Eagel & Squire, P.C. Litigation Partner Brandon Walker Encourages Investors Who Suffered Losses In Alphabet (GOOG) To Contact Him Directly To Discuss Their Options

If you purchased or acquired Alphabet securities between May 19, 2026 and July 16, 2026 and would like to discuss your legal rights, contact Bragar Eagel & Squire partners Brandon Walker or Melissa Fortunato by email at [email protected] or by telephone at (212) 355-4648.

Click here to participate in the action.

NEW YORK, Oct. 29, 2026 (GLOBE NEWSWIRE) --

What’s Happening:

Bragar Eagel & Squire, P.C., a nationally recognized stockholder rights law firm, announces that a class action lawsuit has been filed against Alphabet Inc. (“Alphabet” or the “Company”) (NASDAQ:GOOG) in the United States District Court for the Northern District of California on behalf of all persons and entities who purchased or otherwise acquired Alphabet securities between May 19, 2026 and July 16, 2026, both dates inclusive (the “Class Period”). Investors have until December 1, 2026 to apply to the Court to be appointed as lead plaintiff in the lawsuit. Allegation Details:

The complaint filed in this class action alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, Defendants failed to disclose to investors that: (1) that the Gemini 3.5 Pro was delivering disappointing training results; (2) that, as a result, the launch of Gemini 3.5 Pro would be significantly delayed; and (3) that, as a result of the foregoing, Defendants’ positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis. Next Steps:

If you purchased or otherwise acquired Alphabet shares and suffered a loss, are a long-term stockholder, have information, would like to learn more about these claims, or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Brandon Walker or Melissa Fortunato by email at [email protected], telephone at (212) 355-4648, or by filling out this contact form. There is no cost or obligation to you. About Bragar Eagel & Squire, P.C.:

Bragar Eagel & Squire, P.C. is a nationally recognized law firm with offices in New York, South Carolina, and California. The firm represents individual and institutional investors in securities, derivative, and commercial litigation as well as individuals in consumer protection and data privacy litigation. The firm has a nationwide practice and routinely handles cases in both federal and state courts. For more information about the firm, please visit www.bespc.com. Attorney advertising. Prior results do not guarantee similar outcomes.
Follow us for updates on LinkedIn and Facebook, and keep up with other news by following Brandon Walker, Esq. on LinkedIn.

Contact Information:

Bragar Eagel & Squire, P.C.
Brandon Walker, Esq.
Melissa Fortunato, Esq.
(212) 355-4648
[email protected]
www.bespc.com

NEW YORK, Oct. 29, 2026 (GLOBE NEWSWIRE) -- Kirby McInerney LLP reminds Alphabet Inc. (“Alphabet” or the “Company”) (NASDAQ: GOOGL; GOOG) investors of the December 1, 2026 deadline to seek the role of lead plaintiff in a pending federal securities class action. Investors are encouraged to contact Lauren Molinaro of Kirby McInerney LLP by email at [email protected], or fill out the contact form below to discuss your rights or interests in the securities fraud class action lawsuit at no cost.

[CONTACT THE FIRM IF YOU SUFFERED A LOSS]

What Is The Lawsuit About?

The lawsuit has been filed on behalf of investors who purchased securities during the period of May 19, 2026 through July 16, 2026, inclusive (“the Class Period”). The lawsuit alleges that Alphabet failed to disclose that: (i) the Gemini 3.5 Pro was delivering disappointing training results; and (ii) as a result, the launch of Gemini 3.5 Pro would be significantly delayed.

On July 16, 2026, Bloomberg reported that Google is “months behind schedule on delivering Gemini 3.5 Pro, its most powerful flagship AI model,” due to the Company’s ongoing coding efforts. The report stated, “[l]ate last month, Google updated the data being used to train Gemini in an attempt to improve [its] skills, but the results were disappointing.” On this news, the price of Alphabet shares declined by $16.46 per share, or approximately 4.4%, from $370.92 per share on July 15, 2026 to close at $354.46 on July 16, 2026.

On September 30, 2026 Google announced that it would release Gemini 4 Argon, which had already been rolled out “to a set of trusted cyber defenders through [its] Fairwind Program,” and Reuters reported that “Google no longer plans to release Gemini 3.5 Pro.”

[CLICK HERE TO LEARN MORE ABOUT THE LAWSUIT]

What Should I Do?

If you purchased or otherwise acquired Alphabet securities, have information, or would like to learn more about this investigation, please contact Lauren Molinaro of Kirby McInerney LLP by email at [email protected], or fill out the contact form below, to discuss your rights or interests with respect to these matters at no cost.

What is the Lead Plaintiff Deadline?

Courts do not consider applications filed after this deadline. The lead plaintiff oversees the litigation on behalf of the class and may influence key decisions, including litigation strategy and settlement. Courts regularly appoint individual investors as lead plaintiffs, not only institutions. Learn more about the lead plaintiff process and eligibility requirements here.

[LEARN MORE ABOUT THE LEAD PLAINTIFF PROCESS]

Kirby McInerney LLP is a New York-based plaintiffs’ law firm concentrating in securities, antitrust, whistleblower, and consumer litigation. The firm’s efforts on behalf of shareholders in securities litigation have resulted in recoveries totaling billions of dollars. Additional information about the firm can be found on Kirby McInerney LLP’s website.

This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.

Contacts
Kirby McInerney LLP
Lauren Molinaro, Esq.
212-699-1171
https://www.kmllp.com
https://securitiesleadplaintiff.com/
[email protected]

Information in Investor’s Business Daily is for informational and educational purposes only and should not be construed as an offer, recommendation, solicitation, or rating to buy or sell securities. The information has been obtained from sources we believe to be reliable, but we make no guarantee as to its accuracy, timeliness, or suitability, including with respect to information that appears in closed captioning. Historical investment performances are no indication or guarantee of future success or performance. Authors/presenters may own the stocks they discuss. We make no representations or warranties regarding the advisability of investing in any particular securities or utilizing any specific investment strategies. Information is subject to change without notice. For information on use of our services, please see our Terms of Use.

*Real-time prices by Nasdaq Last Sale. Real-time quote and/or trade prices are not sourced from all markets. Ownership data provided by LSEG and Estimate data provided by FactSet.

IBD, IBD Digital, IBD Live, IBD Weekly, Investor's Business Daily, Leaderboard, MarketDiem, MarketSurge and other marks are trademarks owned by Investor's Business Daily, LLC.

©2026 Investor’s Business Daily, LLC. All Rights Reserved.

Amazon shares fell as much as 9% in after-market trading Thursday after the tech giant reported third-quarter earnings below Wall Street analysts’ expectations.

Earnings per share came in at $1.89 on a diluted basis, down from $1.95 in the year-ago quarter, while total revenue climbed 12% to $201.9 billion. The consensus forecast from analysts called for earnings per share of $1.97 and $202.25 billion in revenue.

In its earnings release, Amazon noted that the downturn in earnings resulted mainly from the $9.5 billion in pre-tax gains in the third quarter of 2025 related to investments in AI mega-startup Anthropic.

Along with the disappointing financials, Amazon also said its fourth-quarter revenue will be between $240 billion and $247 billion, suggesting it has a chance to fall below the Street outlook of $244.5 billion.

Amazon stock dropped below $230 after hours after surrendering 4% during the regular trading day. The after-hours decline improved to 6% but shares were still down ahead of a scheduled conference call with top execs at the top of the next hour.

Investors have been punishing tech stocks this week as they seek indications of returns on the sector’s heavy spending on artificial intelligence. A number of major players, among then Google and parent Alphabet, Meta, Microsoft and Nvidia, are collectively pouring hundreds of billions of dollars a year into the AI buildout.

Alphabet shares plunged 12% Thursday, a record downturn for the large-cap issue erasing $500 billion in market value, after the company missed third-quarter revenue targets and reported a slowdown in its core search business. Shares in Nvidia are down 6% over the past month amid mounting skepticism, and Meta stock has taken a 5% hit over the past week despite a solid quarterly earnings report last week.

Amazon’s web services unit, AWS, has been shelling out significant sums on AI, but CEO Andy Jassy said in the earnings release that the spending helped lead to 39% revenue growth in the quarter and a projected annual run rate of $184 billion. Revenue will grow by more than 40% in 2027 and ’28, he predicts. “Our AWS investment in functionality and infrastructure is working,” he said.

While bulls and bears will continue to argue about the ROI on AI spending, there were plenty of disconcerting signs across the full quarterly report. Advertising, which had been growing by more than 20% each quarter for the past few years, actually declined from the second quarter. It came in at $19.6 billion, a 12% uptick from the year-ago period. In its Prime Video business, which has been expanding its sports rights portfolio alongside other content investments, advertising has been a key element in the strategy since it launched across all Prime titles in 2024.

High atop the Amazon earnings release was a caveat reminding investors that Prime Day, a major tentpole for e-commerce, moved earlier this year and occurred in the second quarter in most large countries. Last year and in years past, it took place entirely during the third quarter. Had that shift not happened, Amazon estimated its revenue increase would have been about 4% higher.

Amazon's cloud-computing unit reported more rapid third-quarter growth than analysts had projected.

Revenue came in at $45.98 billion, up 39% year over year and above the $45.29 billion consensus among analysts polled by StreetAccount, according to a statement. Growth in the second quarter came in at about 37%.

"Our core compute and storage revenue grew at their fastest rates in several years," Amazon CEO Andy Jassy said on a conference call with analysts. The AWS growth rate was the highest since the fourth quarter of 2021.

Amazon remains the top cloud by revenue, but growth has also sped up at rivals Alphabet and Microsoft. On Wednesday Alphabet said the Google Cloud business, which contains infrastructure and Google Workspace subscriptions, more than doubled in the third quarter.

All the major clouds have been racing to build data centers that can accommodate high artificial intelligence demand. During the quarter, AWS announced plans to expand its portfolio of Nvidia graphics processing units that can handle AI workloads.

AWS also acquired data analysis startup DuckLabs and signed deals with Meta and OpenAI, according to the statement.

The AWS segment generated $17.77 billion in third-quarter operating income, up 55% and more than the $16.97 billion StreetAccount consensus.

The unit now accounts for almost 23% of Amazon's revenue, a record.

On Wednesday, Microsoft published its first earnings report that contained revenue from its Azure cloud in dollars. Azure is 72% the size of AWS, up from 58% two years ago.

AWS came before Azure and the Google Cloud Platform, with its first services appearing in 2006.

"With our continued pace of innovation, new core and AI functionality, enterprises wanting to run their core and AI workloads in AWS, and the amount of capacity that we're adding each year, we believe that AWS can grow north of 40% in each of 2027 and in 2028, and be a trillion-dollar revenue business in the next five to 10 years," Jassy said.

Google has been pumping up its cloud revenue by making its tensor processing units for AI available outside its own facilities. Now Amazon will adopt the strategy with its Trainium chips for training models, starting in late 2027.

"With Trainium demand so strong, customers continue encouraging us to make it available outside of AWS. We intend to do so late in 2027," Jassy said.

watch now

Amazon spent more than $77 billion on property and equipment in the third quarter, far more than analysts' estimates, while pursuing its effort to build data centers and fulfill demand for AI services. Anurag Rana and Poonam Goyal break down the numbers on "Bloomberg The Close.

Image Credits:Getty Images

Amazon reported its third-quarter earnings on Thursday and missed analysts’ expectations for both its total revenue and earnings per share. There were other murky numbers in the report that scared investors, too, including how much cash the company is burning through.

But the report did have a big, bright spot: Its cloud unit, Amazon Web Services, beat revenue expectations and grew a whopping 39% compared to the year-ago quarter.

Here are the numbers:

Net sales increased 12% to $201.9 billion. But analysts were expecting $202.2 billion, according to FactSet. Fully diluted earnings per share were $1.89. Analysts were expecting $1.97. AWS sales reached $45.98 billion. Analysts were expecting $45.29 billion. In addition, Amazon said that AWS operating income grew to $17.8 billion, compared with $11.4 billion in the third quarter of 2025. But here’s the biggest ouch of the report: Free cash flow fell to a negative of $42.4 billion for the trailing 12 months — meaning the company was spending far more cash than it generated. This compares to positive free cash flow of $14.8 billion for the trailing 12 months ended September 30, 2025.

The big spending was driven largely by Amazon’s investments in AI, the company said. With one quarter left in its fiscal year, Amazon reiterated that it still expects to end its 2026 with cash capital expenditures of about $220 billion.

To put that in perspective, the company forecast fourth-quarter net sales of between $240 billion and $247 billion. The fourth quarter is typically a retailer’s biggest, thanks to the holiday shopping season. That means Amazon expects to spend almost as much on capital expenditures, largely for AI, over the full year as it expects to bring in from sales in the fourth quarter.

Topics

When you purchase through links in our articles, we may earn a small commission. This doesn’t affect our editorial independence.

Julie Bort is the Startups/Venture Desk editor for TechCrunch.

You can contact or verify outreach from Julie by emailing [email protected] or via @Julie188 on X.

Amazon (AMZN - Free Report) came out with quarterly earnings of $1.89 per share, missing the Zacks Consensus Estimate of $2.01 per share. This compares to earnings of $1.95 per share a year ago. These figures are adjusted for non-recurring items.

This quarterly report represents an earnings surprise of -5.97%. A quarter ago, it was expected that this online retailer would post earnings of $1.83 per share when it actually produced earnings of $1.88, delivering a surprise of +2.73%.

Over the last four quarters, the company has surpassed consensus EPS estimates just once.

Amazon, which belongs to the Zacks Internet - Commerce industry, posted revenues of $201.94 billion for the quarter ended September 2026, missing the Zacks Consensus Estimate by 0.08%. This compares to year-ago revenues of $180.17 billion. The company has topped consensus revenue estimates three times over the last four quarters.

The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.

Amazon shares have added about 10.3% since the beginning of the year versus the S&P 500's gain of 13.1%.

What's Next for Amazon?While Amazon has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?

There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.

Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.

Ahead of this earnings release, the estimate revisions trend for Amazon was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $2.55 on $245.65 billion in revenues for the coming quarter and $12.69 on $829.47 billion in revenues for the current fiscal year.

Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Internet - Commerce is currently in the bottom 29% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.

Booking Holdings (BKNG - Free Report) , another stock in the same industry, has yet to report results for the quarter ended September 2026. The results are expected to be released on November 3.

This online booking service is expected to post quarterly earnings of $4.48 per share in its upcoming report, which represents a year-over-year change of +12.6%. The consensus EPS estimate for the quarter has been revised 0.4% higher over the last 30 days to the current level.

Booking Holdings' revenues are expected to be $9.56 billion, up 6.2% from the year-ago quarter.

Microsoft delivered robust Q1 results with 19% YoY revenue growth and strong AI-driven Azure momentum. MSFT's profitability showed minor gross margin softness, but operating margin expanded; Q2 guidance signals continued top-line strength but with margin pressure. CapEx remains elevated, with over $50B planned for Q2, justified by robust AI demand and accelerating Azure growth.