Tech stocks down: Intel, Reddit, and Amazon are getting hammered. Has the AI reckoning arrived?
There’s one thing scaring investors today, and it’s not Halloween. As of this writing, some of the biggest tech stocks are getting hammered in premarket trading, just one day after Google owner Alphabet Inc. saw its own stock price suffer the worst one-day decline in its history. Here’s what you need to know. Nasdaq lower as tech stocks sink It’s shaping up to be nothing short of a bloodbath of a…
Investors are facing a bloodbath this week as major tech stocks, including Intel, Reddit, and Amazon, take a significant hit. The cause of the downturn is a growing concern: the impact of artificial intelligence (AI) on companies' bottom lines.
Yesterday, Google's parent company, Alphabet Inc., saw its shares drop by 12.29% in a single session due to a significant increase in negative cash flow resulting from its AI buildout. The main driver of this decline was the underwhelming quarterly results for Google's Search division.
Today, Intel, Reddit, and Amazon are also feeling the heat. The chipmaker saw its shares plunge 25% in premarket trading after reporting weaker-than-expected Q3 2026 results, driven by a slowdown in PC sales and rising memory prices. Reddit's stock price plummeted nearly 20% due to a sharp decline in search referral traffic as Google's AI search results diminish the site's visibility.
Amazon's stock slipped around 6.3% after its Q3 results came in below expectations, with negative free cash flow of $42.4 billion for the trailing 12 months due to AI-related capital expenditures.
These stock declines suggest that investors are growing increasingly worried about the profitability of AI investments. As tech giants continue to pour billions into AI development, including data centers, they must now face the challenge of making AI profitable and delivering returns on their massive investments.
Written by urgent.news from Fast Company's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
